World Grain - June 2014 - 17

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ADM's first-quarter earnings hurt by weather
DECATUR, ILLINOIS, U.S. - Archer Daniels Midland Company
(ADM) reported on April 29 that first-quarter earnings fell to $267
million, or 40¢ per share, from $269 million and 41¢ per share a year
earlier due to harsh winter weather that affected trading operations.
The company reported adjusted earnings of 55¢ per share, up
from 46¢ per share in the same period last year. Segment operating
profit was $691 million, up 10% from the year-ago period. Adjusted
segment operating profit was $780 million, up 17% from the yearago period.
"Our businesses delivered mixed results in the first quarter," said
ADM Chairman and Chief Executive Officer Patricia Woertz. "Our
Ag Services business again generated weak results due to a low margin environment as well as logistics and weather challenges in the
U.S. Continued strong performance in Corn was supported by the robust ethanol market. And the sustained, solid results in Oilseeds were
driven by good margins and volumes in North and South American
soybean crushing.
Milling and other results declined $8 million to $51 million as a
lack of the seasonal carry in the wheat futures market reduced grain
and feed merchandising opportunities.
Oilseeds Processing operating profit increased $50 million to $358
million, as North American soybean crushing had strong utilization

amid good meal demand, and South American soybean crushing and
origination benefited from large harvests, good demand and an improved logistics environment.
Refining, packaging, biodiesel and other generated a profit of $113
million for the quarter, up $5 million as improved European biodiesel
results offset a decline in North America due to the absence of $20
million in biodiesel tax credits recorded in the year-ago period.
Corn Processing operating profit increased $64 million to $261
million on strong results from ethanol. Bioproducts results increased
$77 million to $154 million. Strong export demand and lower industry production volumes combined to drive a steadily improving
margin environment throughout the quarter.
Agricultural Services operating profit increased $2 million to $153
million, as market conditions and higher costs limited merchandising
and handling margins. Results for the quarter include the recovery of
about $20 million of a previously established loss provision.
Merchandising and handling earnings declined $17 million to $69
million, as margins were limited both by inverted corn, soybean and
wheat markets and by increased costs that were exacerbated by weather.
Transportation results recovered $27 million to $33 million. Pentup barge freight demand caused by the harsh U.S. winter pushed
freight rates up significantly as river traffic returned in March.

ADM appoints oilseed vice-president
DECATUR, ILLINOIS, U.S. - Archer Daniels Midland Company
(ADM) announced on May 7 two management appointments.
Scott Walker was named vice-president, Oilseeds Portfolio Optimization. He will lead the company's sale of its chocolate business.
Ian Pinner was named president, Global Cocoa, where he will oversee the company's cocoa press operations.
"As we work to sell our chocolate business - while retaining and
continuing to improve our global cocoa press operations - it is important that each of these businesses have strong leaders who can dedi-

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cate themselves fully to these distinct efforts," said Matt Jansen, senior
vice-president and president, Oilseeds.
Pinner joined ADM in 1999. Prior to his current position, he
served as vice-president, Corporate Strategic & Financial Planning,
and before that, as president, Grain.
Prior to his current position, Walker was president, Cocoa. Walker
joined ADM in 1993 and served as a merchandiser at numerous locations in the Oilseed Processing business before becoming a commodity merchandiser for ADM Cocoa in 1998.

For more information, see Page 122.

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World Grain - June 2014

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