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 ADM Reports Fourth Quarter Earnings of $1.39 per Share, $0.82 per Share on an Adjusted Basis
   Tuesday, February 06, 2018 7:00:02 AM ET

--2017 annual ROIC of 6.4 percent, above WACC of 6.0 percent

Archer Daniels Midland Company (ADM ) today reported financial results for the quarter ended December 31, 2017.

"We ended 2017 with a solid fourth quarter. We pulled the levers under our control--including cost and capital initiatives and interventions throughout the year--to deliver value for shareholders," said ADM Chairman and CEO Juan Luciano. "I am also proud that our more than 31,000 colleagues delivered the best quarterly employee safety record in ADM’s history."

"For 2017 as a whole, we grew earnings per share, improved returns on invested capital and generated positive EVA. Looking ahead, we expect improving results through 2018 as our strategy advances. Our increasing international presence, and expanding capabilities in areas such as destination marketing, food and beverage innovation, and health and wellness, all help to position ADM for continued growth and value creation."

                                                                
Fourth Quarter 2017 Highlights
                                                                                                                                                                 
                                                                                                                                2017                                     2016
                                                                                                                         ------------------                     ----------------------
                                                                                                                                  (Amounts in millions except per share data)
Earnings per share (as reported)                                                                                               $    1.39                                 $       0.73
Adjusted earnings per share(1)                                                                                                 $    0.82                                 $       0.75
                                                                                                                                                                 
Segment operating profit                                                                                                       $     733                                 $        806
Adjusted segment operating profit(1)                                                                                           $     793                                 $        827
   Agricultural Services                                                                                                             301                                          245
   Corn Processing                                                                                                                   261                                          255
   Oilseeds Processing                                                                                                               202                                          239
   WFSI                                                                                                                               56                                           38
   Other                                                                                                                             (27 )                                         50

-- EPS as reported of $1.39 includes a $0.08 per share charge related to asset impairments and restructuring activities and a positive $0.65 per share net tax adjustment primarily related to U.S. tax reform. Adjusted EPS, which excludes these items, was $0.82.(1)

-- During 2017, the company returned $1.5 billion to shareholders through dividends and share repurchases.

(1) Non-GAAP financial measures; see pages 4, 9 and 10 for explanations and reconciliations, including after-tax amounts.

Results of Operations

Ag Services results were up over the prior-year period.

Merchandising and Handling earnings increased year-over-year. The lack of competitiveness of U.S. grain exports was offset by solid performance in Global Trade, strong destination marketing gains, and insurance and other income.

Transportation results decreased from the prior-year period, due to lower barge loadings and freight values.

Milling and Other earnings were down year-over-year due to lower volumes and margins.

Corn Processing results increased over the prior-year fourth quarter. Sweeteners and Starches had another strong quarter, with solid earnings growth over the prior year in both North America and EMEA. Lower year-over-year results in Bioproducts due to lower ethanol margins were partially mitigated by favorable risk management.

Oilseeds Processing results were down compared to the fourth quarter of last year. Crushing and Origination results were lower due to weak crush margins, despite strong crush volumes and continued growth in demand. Origination results in South America were impacted by weak margins.

Refining, Packaging, Biodiesel and Other experienced lower earnings versus the fourth quarter of 2016, due primarily to weaker biodiesel margins, partially offset by strong refining and packaging results.

Asia was up slightly over the prior-year period on Wilmar results.

WFSI results were solid, up versus the prior-year quarter. WILD Flavors delivered double-digit operating profit growth with strong sales across all regions. Specialty Ingredients results were up versus a challenging year-ago period.

Other results decreased due to unfavorable underwriting performance from the company’s captive insurance operations compared to favorable underwriting income in the prior year period.

Other Items of Note

As additional information to help clarify underlying business performance, the table on page 9 includes reported EPS as well as adjusted EPS.

Segment operating profit of $733 million for the quarter includes charges of $62 million ($0.07 per share) related to a settlement charge and asset impairment and restructuring charges.

In Corporate results, unallocated corporate costs for the quarter decreased due to lower employee costs and the absence of certain costs incurred last year. Minority Interest and Other charges for the quarter include several individually insignificant restructuring charges totaling $7 million ($0.01 per share) compared to last year’s U.S. OPEB curtailment gain of $38 million ($0.04 per share) and restructuring charges of $3 million.

Income tax expense for the quarter decreased $379 million ($0.67 per share) due to the estimated effects of U.S. tax reform. Excluding the effects of U.S. tax reform, the Company’s effective tax rate would have been 24 percent for the quarter and year.

Conference Call Information

ADM will host a webcast on February 6, 2018, at 8 a.m. Central Time to discuss financial results and provide a company update. A financial summary slide presentation will be available to download approximately 60 minutes prior to the call. To listen to the webcast or to download the slide presentation, go to www.adm.com/webcast. A replay of the webcast will also be available for an extended period of time at www.adm.com/webcast.

Forward-Looking Statements

Some of the above statements constitute forward-looking statements. These statements are based on many assumptions and factors that are subject to risk and uncertainties. ADM has provided additional information in its reports on file with the SEC concerning assumptions and factors that could cause actual results to differ materially from those in this presentation, and you should carefully review the assumptions and factors in our SEC reports. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements.

About ADM

For more than a century, the people of Archer Daniels Midland Company (ADM ) have transformed crops into products that serve the vital needs of a growing world. Today, we’re one of the world’s largest agricultural processors and food ingredient providers, with approximately 31,000 employees serving customers in more than 170 countries. With a global value chain that includes approximately 500 crop procurement locations, 270 ingredient manufacturing facilities, 44 innovation centers and the world’s premier crop transportation network, we connect the harvest to the home, making products for food, animal feed, industrial and energy uses. Learn more at www.adm.com.

Financial Tables Follow

                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                       
Segment Operating Profit, Adjusted Segment Operating Profit (a
non-GAAP measure) and Corporate Results
(unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                       Quarter ended                                                                                                                              Year ended                                            
                                                                                                                                        December 31                                                                                                                                                                                                           December 31
                                                                                              ----------------------------------------------------------------------------------------       -------------------- ----------------------------------   --------------------                      -------------------- ------------------------------------------------------------------------------------       -------------------- --------------------------------
(In millions)                                                           2017                                   2016                                  Change                                                        2017                                 2016                                Change
--------------------------------------------------- -------------------- -------------------- --------------------------------------------------------- --------------------------------------------------------- ---------------------------------------------------------                      -------------------- ------------------------------------------------------- ------------------------------------------------------- -----------------------------------
                                                                                                                                                             
--------------------------------------------------- -------------------- -------------------- --------------------------------------------------------- --------------------------------------------------------- ---------------------------------------------------------                      -------------------- ------------------------------------------------------- ------------------------------------------------------- -----------------------------------
Segment Operating Profit                                                                            $     733                              $     806                                                 $     (73 )                                                                                        $  2,536                             $  2,704                                                $   (168 )
Less specified items:
  (Gains) losses on sales of assets and businesses                                                         (2 )                                          --                                                        (2 )                                                                                             (22 )                                                  (114 )                                                    92
  Impairment, restructuring, and settlement charges                                                        62                                                        16                                                        46                                                                                               160                                                      32                                                     128
  Hedge timing effects                                                                         --                   5                  (5 )                                                        (4 )                                  1                (5 )
                                                                                              ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ --------------------                      -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ----------------------------------
Adjusted Segment Operating Profit                                                                   $     793                                                 $     827                                                 $     (34 )                                                                                        $  2,670                                                $  2,623                                                $     47
                                                                                                                                                                                                                                                                                                                                                                                                                                       
  Agricultural Services                                                                             $     301           $     245           $      56                                 $    585          $    573          $     12  
                                                                                              ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- --------------------                      -------------------- ------ ------ -------------------- -------------------- ------ ------ -------------------- -------------------- ------ ------ --------------------
   Merchandising and handling                                                                             221                                                       126                                                        95                                                                                               300                                                     228                                                      72
   Milling and other                                                                                       43                                                        62                                                       (19 )                                                                                             199                                                     226                                                     (27 )
   Transportation                                                                                          37                                                        57                                                       (20 )                                                                                              86                                                     119                                                     (33 )
                                                                                                                                                                                                                                                                                                                                                                                                                                       
  Corn Processing                                                                                   $     261           $     255           $       6                                 $    909          $    761          $    148  
                                                                                              ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- --------------------                      -------------------- ------ ------ -------------------- -------------------- ------ ------ -------------------- -------------------- ------ ------ --------------------
   Sweeteners and starches                                                                                185                                                       156                                                        29                                                                                               746                                                     655                                                      91
   Bioproducts                                                                                             76                                                        99                                                       (23 )                                                                                             163                                                     106                                                      57
                                                                                                                                                                                                                                                                                                                                                                                                                                       
  Oilseeds Processing                                                                               $     202           $     239           $     (37 )                                                  $    841          $    880          $    (39 )
                                                                                              ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- --------------------                      -------------------- ------ ------ -------------------- -------------------- ------ ------ -------------------- -------------------- ------ ------ --------------------
   Crushing and origination                                                                                44                                                        55                                                       (11 )                                                                                             241                                                     386                                                    (145 )
   Refining, packaging, biodiesel, and other                                                               64                                                        93                                                       (29 )                                                                                             272                                                     344                                                     (72 )
   Asia                                                                                                    94                                                        91                                                         3                                                                                               328                                                     150                                                     178
                                                                                                                                                                                                                                                                                                                                                                                                                                       
Wild Flavors & Specialty Ingredients (WFSI)                                                         $      56           $      38           $      18                                 $    284          $    275          $      9  
                                                                                              ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- --------------------                      -------------------- ------ ------ -------------------- -------------------- ------ ------ -------------------- -------------------- ------ ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                       
Other                                                                                               $     (27 )                            $      50           $     (77 )                                                  $     51          $    134          $    (83 )
                                                                                              ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- --------------------                      -------------------- ------ ------ -------------------- -------------------- ------ ------ -------------------- -------------------- ------ ------ --------------------
                                                                                                                                                             
--------------------------------------------------- -------------------- -------------------- --------------------------------------------------------- --------------------------------------------------------- ---------------------------------------------------------                      -------------------- ------------------------------------------------------- ------------------------------------------------------- -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                             
--------------------------------------------------- -------------------- -------------------- --------------------------------------------------------- --------------------------------------------------------- ---------------------------------------------------------                      -------------------- ------------------------------------------------------- ------------------------------------------------------- -----------------------------------
Segment Operating Profit                                                                            $     733                                                 $     806                                                 $     (73 )                                                                                        $  2,536                                                $  2,704                                                $   (168 )
                                                                                                                                                                                                                                                                                                                                                                                                                                       
Corporate Results                                                                                   $    (190 )                            $    (177 )                            $     (13 )                                                  $   (927 )                           $   (882 )                           $    (45 )
                                                                                              ------- ------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- ------- -------------------- --------------------                      -------------------- ------ ------ -------------------- -------------------- ------ ------ -------------------- -------------------- ------ ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                       
  LIFO credit (charge)                                                                                     (2 )                                                      (2 )                                          --                                                                                                 2                                                     (19 )                                                    21
  Interest expense - net                                                                                  (78 )                                                     (77 )                                                      (1 )                                                                                            (310 )                                                  (282 )                                                   (28 )
  Unallocated corporate costs                                                                             (94 )                                                    (132 )                                                      38                                                                                              (470 )                                                  (457 )                                                   (13 )
  Minority interest and other charges                                                                     (16 )                                   34                 (50 )                                                      (149 )                               (124 )                                (25 )
                                                                                              ------------------------------------ -------------------- ------------------------------------ -------------------- ------------------------------------ --------------------                      -------------------- ---------------------------------- -------------------- ---------------------------------- -------------------- ----------------------------------
Earnings Before Income Taxes                                  $     543           $     629           $     (86 )                                                  $  1,609          $  1,822          $   (213 )
--------------------------------------------------- -------------------- -------------------- ======= ======= ==================== ==================== ======= ======= ==================== ==================== ======= ======= ==================== ====================                      ==================== ====== ====== ==================== ==================== ====== ====== ==================== ==================== ====== ====== ====================
Segment operating profit is ADM’s consolidated income from
operations before income tax excluding corporate items. Adjusted
segment operating profit, a non-GAAP measure, is segment operating
profit excluding specified items and timing effects. Timing effects
relate to hedge ineffectiveness and mark-to-market hedge timing
effects. Management believes that segment operating profit and
adjusted segment operating profit are useful measures of ADM’s
performance because they provide investors information about ADM’s
business unit performance excluding corporate overhead costs as well
as specified items and significant timing effects. Segment operating
profit and adjusted segment operating profit are not measures of
consolidated operating results under U.S. GAAP and should not be
considered alternatives to income before income taxes, the most
directly comparable GAAP financial measure, or any other measure of
consolidated operating results under U.S. GAAP.
                                                                                                                                                                         
                                                                                                                                                                                                                                    
Consolidated Statements of Earnings
(unaudited)
                                                                                                                                                                                                                                    
                                                                                                                                                        Quarter ended                                                                                                       Year ended
                                                                                                                                                         December 31                                                                                                        December 31
                                                                                                               ----------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------
                                                                                                                               2017                                   2016                                  2017                                  2016
                                                                                                               --------------------------------------------------------- --------------------------------------------------------- ------------------------------------------------------- -------------------------------------
                                                                                                                                                                                                    (in millions, except per share amounts)
                                                                                                                                                                                                                                                    
Revenues                                                                                                             $  16,070                                                 $  16,501                                                $ 60,828                                                 $  62,346
Cost of products sold                                                                                                   15,131                                 15,490                               57,322                                 58,727  
                                                                                                               ------------------------------------                      ------------------------------------                      ----------------------------------                      ------------------------------------
  Gross profit                                                                                                             939                                                     1,011                                                   3,506                                                     3,619
Selling, general, and administrative expenses                                                                              463                                                       455                                                   1,993                                                     1,980
Asset impairment, exit, and restructuring costs                                                                             33                                                        19                                                     173                                                        55
Equity in (earnings) losses of unconsolidated affiliates                                                                  (129 )                                                    (139 )                                                  (456 )                                                    (292 )
Interest income                                                                                                            (31 )                                                     (24 )                                                  (106 )                                                     (92 )
Interest expense                                                                                                            84                                                        80                                                     330                                                       293
Other (income) expense - net                                                                                               (24 )                                                      (9 )                                                   (37 )                                                    (147 )
                                                                                                               ------------------------------------                      ------------------------------------                      ----------------------------------                      ------------------------------------
  Earnings before income taxes                                                                                             543                                                       629                                                   1,609                                                     1,822
Income tax benefit (expense)                                                                                               249                                   (203 )                                                    (7 )                                                    (534 )
                                                                                                               ------------------------------------                      ------------------------------------                      ----------------------------------                      ------------------------------------
  Net earnings including noncontrolling interests                                                                          792                                                       426                                                   1,602                                                     1,288
                                                                                                                                                                                                                                   
                                                                                                               -------------------------------------                     -------------------------------------                     -----------------------------------                     -------------------------------------
Less: Net earnings (losses) attributable to noncontrolling interests                                                         4                                      2                                    7                                      9  
                                                                                                               ------------------------------------                      ------------------------------------                      ----------------------------------                      ------------------------------------
Net earnings attributable to ADM                                                                                     $     788                              $     424                             $  1,595                              $   1,279  
                                                                                                               ======= ======= ====================                      ======= ======= ====================                      ====== ====== ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                                            
Diluted earnings per common share                                                                                    $    1.39                                                 $    0.73                                                $   2.79                                                 $    2.16
                                                                                                                                                                                                                                                                                            
Average number of shares outstanding                                                                                       565                                                       583                                                     572                                                       591
                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                            
Other (income) expense - net consists of:
--------------------------------------------------------------------
  (Gains) losses on sales of assets (a)                                                                              $     (14 )                                               $     (13 )                                              $    (80 )                                               $    (130 )
  Loss on debt extinguishment (b)                                                                               --                                            --                                                      11                                            --
  Other - net (c)                                                                                                          (10 )                                                       4                                   32                                    (17 )
                                                                                                               ------------------------------------                      ------------------------------------                      ----------------------------------                      ------------------------------------
                                                                                                                     $     (24 )                                               $      (9 )                                              $    (37 )                                               $    (147 )
                                                                                                               ======= ======= ====================                      ======= ======= ====================                      ====== ====== ====================                      ======= ======= ====================
(a) Current quarter gains include gains related to individually
insignificant disposals in Ag Services, Corn, Oilseeds, and WFSI.
Current year gains include gains related to the sale of the crop
risk services business in Other and other individually insignificant
disposals in all business segments and Corporate partially offset by
an adjustment of the proceeds of the 2015 sale of the cocoa business
in Oilseeds. Prior quarter gains related to individually
insignificant disposals in Ag Services, Corn, Oilseeds, and Other.
Prior year gains include gains related to realized contingent
consideration from the sale of the Company’s equity investment in
Gruma S.A.B de C.V. partially offset by a loss on sale of assets in
Ag Services, finalization of the gain on sale of the Company’s
Brazilian sugar ethanol facilities in Corn, revaluation of the
remaining interest to settlement value in conjunction with the
acquisition of the remaining interest in Amazon Flavors in WFSI, a
loss on sale of an equity investment in Corporate, and other
individually insignificant disposals in Ag Services, Corn, Oilseeds,
and Other.
 
(b) Current year charge related to the early redemption of the $559
million notes due on March 15, 2018.
 
(c) Other - net in the current quarter includes miscellaneous income
partially offset by provisions for contingent losses related to
settlement items in Oilseeds and foreign exchange losses. Other -
net in the current year includes provisions for contingent losses
related to certain settlement items in Oilseeds and WFSI and foreign
exchange losses partially offset by miscellaneous income. Other -
net in the prior quarter includes foreign exchange losses and other
expenses. Other - net in the prior year includes miscellaneous
income partially offset by foreign exchange losses.
                                                                                               
                                                                                                                                                                                                
Summary of Financial Condition
(Unaudited)
                                                                                                                                                                                                
                                                                                                                                                 December 31,                    December 31,
                                                                                                                                                     2017                                               2016
                                                                                                                                     ----------------------------------   -------------------- --------------------
                                                                                                                                                                       (in millions)
Net Investment In
Cash and cash equivalents (b)                                                                                                              $     804                                                    $        619
Short-term marketable securities (b)                                                                                                  --                                                             296
Operating working capital (a)                                                                                                                  7,421                                                           7,384
Property, plant, and equipment                                                                                                                10,138                                                           9,758
Investments in and advances to affiliates                                                                                                      5,088                                                           4,497
Long-term marketable securities                                                                                                                   92                                                             187
Goodwill and other intangibles                                                                                                                 3,918                                                           3,703
Other non-current assets                                                                                                                         802                                          579
                                                                                                                                     ------------------------------------                      ----------------------
                                                                                                                                           $  28,263                                 $     27,023
                                                                                                                                     ======= ======= ====================                      ========== ==========
Financed By
Short-term debt (b)                                                                                                                        $     857                                                    $        154
Long-term debt, including current maturities (b)                                                                                               6,636                                                           6,777
Deferred liabilities                                                                                                                           2,395                                                           2,887
Temporary equity                                                                                                                                  53                                                              24
Shareholders’ equity                                                                                               18,322                                       17,181
                                                                                                                                     ------------------------------------                      ----------------------
                                                                                                                                           $  28,263                                 $     27,023
                                                                                                                                     ======= ======= ====================                      ========== ==========
(a)   Current assets (excluding cash and cash equivalents and short-term
                         marketable securities) less current liabilities (excluding
                         short-term debt and current maturities of long-term debt).
(b)                      Net debt is calculated as short-term debt plus long-term debt,
                         including current maturities less cash and cash equivalents and
                         short-term marketable securities.
                                                                     
                                                                                                                                
Summary of Cash Flows
(unaudited)
                                                                                                                                
                                                                                                                                                                     Year ended
                                                                                                                                                                     December 31
                                                                                                                               --------------------------------------------------------------------------------
                                                                                                                                            2017                               2016
                                                                                                                               --------------------------------------------------- -----------------------------------
                                                                                                                                                                    (in millions)
Operating Activities                                                                                                                                           
  Net earnings                                                                                                                   $ 1,602                                                $  1,288
  Depreciation and amortization                                                                                                      924                                                     900
  Asset impairment charges                                                                                                           101                                                      34
  Gains on sales of assets                                                                                                           (80 )                                                  (130 )
  Other - net                                                                                                                       (652 )                                                   (32 )
  Changes in operating assets and liabilities                                                                                        316                                 (505 )
                                                                                                                               ------------------------------                      ----------------------------------
    Total Operating Activities                                                                                                     2,211                                                   1,555
                                                                                                                                                                                    
Investing Activities
  Purchases of property, plant and equipment                                                                                      (1,049 )                                                  (882 )
  Net assets of businesses acquired                                                                                                 (187 )                                                  (130 )
  Proceeds from sale of business/assets                                                                                              195                                                     195
  Marketable securities - net                                                                                                        447                                                     258
  Other investing activities                                                                                                        (292 )                                                  (652 )
                                                                                                                               ------------------------------                      ----------------------------------
    Total Investing Activities                                                                                                      (886 )                                                (1,211 )
                                                                                                                                                                                    
Financing Activities
  Long-term debt borrowings                                                                                                          532                                                   1,041
  Long-term debt payments                                                                                                           (846 )                                                   (14 )
  Net borrowings (payments) under lines of credit                                                                                    685                                                      61
  Share repurchases                                                                                                                 (750 )                                                (1,000 )
  Cash dividends                                                                                                                    (730 )                                                  (701 )
  Other                                                                                                                               81                                   34  
                                                                                                                               ------------------------------                      ----------------------------------
    Total Financing Activities                                                                                                    (1,028 )                                                  (579 )
                                                                                                                                                                                    
Increase (decrease) in cash, cash equivalents, restricted cash,                                                                      297                                                    (235 )
and restricted cash equivalents
Cash, cash equivalents, restricted cash, and restricted cash                                                                       1,561                                1,796  
equivalents - beginning of period
                                                                                                                               --------  --------------------                      ------------  --------------------
Cash, cash equivalents, restricted cash, and restricted cash                                                                     $ 1,858                             $  1,561  
equivalents - end of period
                                                                                                                               === ===== ====================                      ====== ====== ====================
                                                                                                                                   
                                                                                                                                                                                                                 
Segment Operating Analysis
(unaudited)
                                                                                                                                                                                                                 
                                                                                                                                                                                                                 
                                                                                                                                          Quarter ended                                                                                         Year ended
                                                                                                                                           December 31                                                                                          December 31
                                                                                                      ------------------------------------------------------------------------------                            ---------------------------------------------------------------------
                                                                                                                    2017                              2016                              2017                         2016
                                                                                                      ---------------------------------------------------- ---------------------------------------------------- ---------------------------------------------------- ----------------------
                                                                                                                                                                        (in ’000s metric tons)
Processed volumes                                                                                                                                                                                                             
Oilseeds Processing                                                                                        9,131                                                8,651                                               34,733                                                          33,788
Corn Processing                                                                                            5,849                             5,650                            22,700                    22,273
                                                                                                      -------------------------------                      -------------------------------                      ------------------------------- -------------------- ----------------------
Total processed volumes                                                                                   14,980                            14,301                            57,433                                       56,061
                                                                                                      ===============================                      ===============================                      ===============================                      ======================
                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                      
                                                                                                                                          Quarter ended                                                                                         Year ended
                                                                                                                                           December 31                                                                                          December 31
                                                                                                      ------------------------------------------------------------------------------                            ---------------------------------------------------------------------
                                                                                                                    2017                              2016                              2017                         2016
                                                                                                      ---------------------------------------------------- ---------------------------------------------------- ---------------------------------------------------- ----------------------
                                                                                                                                                                                          (in millions)
Revenues
Agricultural Services                                                                                   $  7,517                                             $  8,066                                             $ 26,246                                                    $     27,893
Corn Processing                                                                                            2,509                                                2,516                                                9,352                                                           9,466
Oilseeds Processing                                                                                        5,424                                                5,281                                               22,530                                                          22,152
Wild Flavors and Specialty Ingredients                                                                       526                                                  544                                                2,313                                                           2,427
Other                                                                                                         94                                94                               387                                          408
                                                                                                      -------------------------------                      -------------------------------                      -------------------------------                      ----------------------
Total revenues                                                                                          $ 16,070                          $ 16,501                          $ 60,828                                 $     62,346
                                                                                                      === ====== ====================                      === ====== ====================                      === ====== ====================                      ========== ==========
                                                                                                                                                                  
Adjusted Earnings Per Share
A non-GAAP financial measure
(unaudited)
                                                                                                                                                                                                                             
                                                                                                                                                 Quarter ended                                                                                                        Year ended
                                                                                                                                                  December 31                                                                                                         December 31
                                                                                                        ----------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------
                                                                                                                        2017                                   2016                                                      2017                                   2016
                                                                                                        -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------
EPS (fully diluted) as reported                                                                               $    1.39                                                 $    0.73                                                 $    2.79                                                 $    2.16
Adjustments:
  LIFO charge (credit) (a)                                                                               --                                            --                                            --                                                      0.02
  (Gains) losses on sales of assets and businesses (b)                                                   --                                            --                                                      0.02                                                     (0.15 )
  Asset impairment, restructuring, and settlement charges (c)                                                      0.08                                                      0.03                                                      0.25                                                      0.13
  Loss on debt extinguishment (d)                                                                        --                                            --                                                      0.01                                            --
  Post-retirement benefit adjustment (e)                                                                 --                                                     (0.04 )                                          --                                                     (0.04 )
  Tax adjustments (f)                                                                                             (0.65 )                                                    0.03                                  (0.64 )                                                    0.04  
                                                                                                        ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Sub-total adjustments                                                                                             (0.57 )                                                    0.02                                  (0.36 )                                          --  
                                                                                                        ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Adjusted earnings per share                                                                                   $    0.82                              $    0.75                              $    2.43                              $    2.16  
                                                                                                        ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
(a)                                          Current quarter and year to date changes in the Company’s LIFO
                                                                reserves of $2 million pretax ($1 million after tax) and $2 million
                                                                pretax ($1 million after tax), respectively, tax effected using the
                                                                Company’s U.S. income tax rate. Prior quarter and year to date
                                                                changes in the Company’s LIFO reserves of $2 million pretax ($1
                                                                million after tax), and $19 million pretax, ($12 million after tax),
                                                                respectively, tax effected using the Company’s U.S. income tax rate.
(b)                                                             Current year to date gain of $22 million pretax ($10 million loss
                                                                after tax) primarily related to the sale of the crop risk services
                                                                business partially offset by an adjustment of the proceeds of the
                                                                2015 sale of the cocoa business, tax effected using the applicable
                                                                tax rates. Prior year to date gain of $109 million pretax ($92
                                                                million after tax), primarily related to recovery of loss provisions
                                                                and gain related to the sale of the Company’s Brazilian sugar
                                                                ethanol facilities, realized contingent consideration on the sale of
                                                                the Company’s equity investment in Gruma S.A. de C.V. in December
                                                                2012, and revaluation of the remaining interest to settlement value
                                                                in conjunction with the acquisition of the remaining interest in
                                                                Amazon Flavors, partially offset by a loss on sale of assets and a
                                                                loss on sale of an equity investment, tax effected using the
                                                                applicable tax rates.
(c)                                                             Current quarter charges of $69 million pretax ($46 million after
                                                                tax) primarily consisted of a settlement charge and several
                                                                individually insignificant asset impairments and restructuring
                                                                charges, tax effected using the applicable tax rates. Current year
                                                                to date charges of $214 million pretax ($144 million after tax)
                                                                primarily consisted of the reconfiguration of the Company’s Peoria,
                                                                Illinois ethanol complex, restructuring charges related to the
                                                                reduction of certain positions within the Company’s global
                                                                workforce, settlement charges, and several individually
                                                                insignificant asset impairments and restructuring charges, tax
                                                                effected using the applicable tax rates. Prior quarter charges of
                                                                $19 million pretax ($13 million after tax) related to impairment of
                                                                certain long-lived assets and restructuring charges, tax effected
                                                                using the applicable tax rates. Prior year to date charges of $117
                                                                million pretax ($77 million after tax), primarily related to legal
                                                                fees and settlement, impairment of certain long-lived assets and
                                                                investments, and restructuring charges, tax effected using the
                                                                applicable tax rates.
(d)                                                             Debt extinguishment charge of $11 million pretax ($7 million after
                                                                tax) related to the early redemption of the Company’s $559 million
                                                                notes due on March 15, 2018.
(e)                                                             U.S. retiree medical benefit curtailment gain of $38 million pretax
                                                                ($24 million after tax), tax effected using the Company’s U.S.
                                                                effective income tax rate.
(f)                                                             Tax adjustments related to the enactment of the Tax Cuts and Jobs
                                                                Act totaling $379 million in the current quarter and year to date
                                                                and certain out of period discrete items consisting of valuation
                                                                allowances, deferred tax re-rates, and changes in assertion totaling
                                                                $9 million and $13 million in the current quarter and year to date,
                                                                respectively. Certain out of period discrete tax adjustments
                                                                totaling $21 million and $24 million, related to valuation
                                                                allowances, deferred tax re-rates, and changes in assertion in the
                                                                prior quarter and year to date, respectively.
 
Adjusted EPS reflects ADM’s fully diluted EPS after removal of the
effect on EPS as reported of certain specified items as more fully
described above. Management believes that Adjusted EPS is a useful
measure of ADM’s performance because it provides investors
additional information about ADM’s operations allowing better
evaluation of underlying business performance and better
period-to-period comparability. This non-GAAP financial measure is
not intended to replace or be an alternative to EPS as reported, the
most directly comparable GAAP financial measure, or any other
measures of operating results under GAAP. Earnings amounts described
above have been divided by the company’s diluted shares outstanding
for each respective period in order to arrive at an adjusted EPS
amount for each specified item.
                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                      
Adjusted Return on Invested Capital
A non-GAAP financial measure
(unaudited)
                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                      
Adjusted ROIC Earnings (in millions)
                                                                                                                                                                                                                                                                                                                Four Quarters
                                                                                                                                 Quarter Ended                                                                                                                                Ended
                                                                                      Mar. 31, 2017                                         June 30, 2017                                          Sep. 30, 2017                                          Dec. 31, 2017                                         Dec. 31, 2017
                                                                           -----------------------------------                     -------------------------------                     -------------------------------------                     -------------------------------                     -----------------------------------
                                                                                                                                                                                                                                                                                                      
Net earnings attributable to ADM                                                $    339                                              $  276                                                 $     192                                              $  788                                                $  1,595
Adjustments:
   Interest expense                                                                   81                                                  86                                                        79                                                  84                                                     330
   LIFO                                                                              (13 )                                                 9                                            --                                                   2                                                      (2 )
   Other adjustments (3)                                                              14                               20                                    106                             (303 )                                                  (163 )
                                                                           ----------------------------------                      ------------------------------                      ------------------------------------                      ------------------------------                      ----------------------------------
      Total adjustments                                                               82                                                 115                                                       185                                                (217 )                                                   165
   Tax on adjustments                                                                (28 )                                               (13 )                                                     (70 )                                               (55 )                                                  (166 )
                                                                           ----------------------------------                      ------------------------------                      ------------------------------------                      ------------------------------                      ----------------------------------
      Net adjustments                                                                 54                              102                                    115                             (272 )                                                    (1 )
                                                                           ----------------------------------                      ------------------------------                      ------------------------------------                      ------------------------------                      ----------------------------------
Total Adjusted ROIC Earnings                                                    $    393                           $  378                              $     307                           $  516                             $  1,594  
                                                                           ====== ====== ====================                      ==== ==== ====================                      ======= ======= ====================                      ==== ==== ====================                      ====== ====== ====================
Adjusted Invested Capital (in millions)                                                                                                                                                                
                                                                                                                                                                                                                                                                                     
                                                                                                                                  Quarter Ended                                                                                                                             Trailing Four
                                                                    Mar. 31, 2017                                           June 30, 2017                                         Sep. 30, 2017                                         Dec. 31, 2017                                         Quarter Average
                                                        -------------------------------------                     ---------------------------------                     ---------------------------------                     ---------------------------------                     -----------------------------------
                                                                                                                                                                                                                                                                                     
Equity (1)                                                    $  17,121                                              $ 17,411                                              $ 17,570                                              $ 18,313                                                $ 17,604
+ Interest-bearing liabilities (2)                                7,207                                                 6,980                                                 7,336                                                 7,493                                                   7,254
+ LIFO adjustment (net of tax)                                       39                                                    44                                                    44                                                    46                                                      43
Other adjustments (3)                                                12                                 43                                 66                               (326 )                                                   (51 )
                                                        ------------------------------------                      --------------------------------                      --------------------------------                      --------------------------------                      ----------------------------------
Total Adjusted Invested Capital                               $  24,379                           $ 24,478                           $ 25,016                           $ 25,526                             $ 24,850  
                                                        ======= ======= ====================                      ==== ====== ====================                      ==== ====== ====================                      ==== ====== ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                     
Adjusted Return on Invested Capital                                                                                                                                                                                                                                                           6.4 %
(1) Excludes noncontrolling interests
(2) Includes short-term debt, current
maturities of long-term debt, capital lease obligations, and
long-term debt
(3) Includes the impact of U.S. tax reform
Adjusted ROIC is Adjusted ROIC earnings divided by adjusted
invested capital. Adjusted ROIC earnings is ADM’s net earnings
adjusted for the after tax effects of interest expense, changes in
the LIFO reserve and other specified items. Adjusted invested
capital is the sum of ADM’s equity (excluding noncontrolling
interests) and interest-bearing liabilities adjusted for the after
tax effect of the LIFO reserve, and other specified items.
Management believes Adjusted ROIC is a useful financial measure
because it provides investors information about ADM’s returns
excluding the impacts of LIFO inventory reserves and other
specified items and increases period-to-period comparability of
underlying business performance. Management uses Adjusted ROIC to
measure ADM’s performance by comparing Adjusted ROIC to its
weighted average cost of capital (WACC). Adjusted ROIC, Adjusted
ROIC earnings and Adjusted invested capital are non-GAAP financial
measures and are not intended to replace or be alternatives to
GAAP financial measures.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180206005424r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180206005424/en/

SOURCE: Archer Daniels Midland Company

Archer Daniels Midland Company 
Media Relations 
Colin McBean 
312-634-8484 
or 
Investor Relations 
Mark Schweitzer 
217-451-8286


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