Summary
Archer-Daniels-Midland Company (ADM) reported a significant decrease in net earnings attributable to controlling interests for the nine months ended September 30, 2015, compared to the same period in 2014. Revenues also saw a substantial decline, primarily driven by lower commodity prices and foreign currency translation impacts, although higher sales volumes partially offset this. The company experienced a notable increase in asset impairment, exit, and restructuring costs, largely related to facilities in Brazil and an international pension plan settlement. Despite the overall decline in earnings, the Oilseeds Processing segment showed an increase in operating profit due to strong soybean crushing volumes and margins, while the Wild Flavors and Specialty Ingredients segment benefited from recent acquisitions. The company also undertook significant debt management activities, including issuing Euro-denominated notes and repurchasing outstanding debentures, which resulted in a substantial debt extinguishment charge. ADM continues to focus on its core segments while strategically divesting non-core assets and pursuing acquisitions to enhance its portfolio.
Financial Highlights
50 data points| Revenue | $16.57B |
| Cost of Revenue | $15.48B |
| Gross Profit | $1.09B |
| SG&A Expenses | $519.00M |
| Interest Expense | $69.00M |
| Net Income | $252.00M |
| EPS (Basic) | $0.41 |
| EPS (Diluted) | $0.41 |
| Shares Outstanding (Basic) | 612.00M |
| Shares Outstanding (Diluted) | 615.00M |
Key Highlights
- 1Net earnings attributable to controlling interests decreased by approximately 33% for the nine months ended September 30, 2015, compared to the prior year, primarily due to lower commodity prices and a significant loss on debt extinguishment.
- 2Total revenues declined by 15% for the nine months ended September 30, 2015, driven by lower sales prices across all major segments, partially offset by higher sales volumes.
- 3Asset impairment, exit, and restructuring costs increased significantly, totaling $96 million for the nine months ended September 30, 2015, compared to $31 million in the prior year, mainly due to impairments in Brazil and international pension plan settlements.
- 4The Oilseeds Processing segment operating profit increased by 28% for the nine months, driven by strong soybean crushing performance and improved South American origination results.
- 5The Wild Flavors and Specialty Ingredients segment saw a 23% increase in operating profit, largely attributed to the acquisition of Wild Flavors and Specialty Commodities, Inc. in late 2014.
- 6The company recorded a significant loss of $189 million on debt extinguishment in the third quarter of 2015 due to tender offers and redemption of outstanding debentures.
- 7Cash provided by operating activities significantly decreased to $1.1 billion for the nine months ended September 30, 2015, from $4.4 billion in the prior year, largely due to changes in working capital.