• Net earnings and adjusted earnings of about $1.2 billion
  • Adjusted ROIC of 11.6%

ADM (NYSE: ADM) today reported financial results for the quarter ended June 30, 2022.

“Our second quarter adjusted earnings per share of $2.15 reflect our team’s strong execution, delivering nutrition to billions of people around the globe,” said Chairman and CEO Juan Luciano. “In addition, our productivity initiatives are improving our capabilities and mitigating the impact of inflation, while our innovation projects are powering profitable growth, as we leverage our unique portfolio and globally integrated network to meet demand driven by the three enduring global trends of food security, health and well-being, and sustainability.

“Looking forward, we expect the combination of our strategic actions and continued good demand for our products to propel very strong earnings in the second half of 2022, with strong cash flows enabling us to accelerate approximately $1 billion in share repurchases into the back half of the year. Beyond that, we will continue to execute the growth plan we laid out at our Global Investor Day, while maintaining our focus on balanced capital allocation and optimizing ROIC.”

Second Quarter 2022 Highlights

(Amounts in millions except per share amounts)

2022

 

2021

Earnings per share (as reported)

$

2.18

 

$

1.26

Adjusted earnings per share1

$

2.15

 

$

1.33

 

 

 

 

Segment operating profit

$

1,840

 

$

1,145

Adjusted segment operating profit (loss)1

$

1,849

 

$

1,160

Ag Services and Oilseeds

 

1,119

 

 

570

Carbohydrate Solutions

 

473

 

 

383

Nutrition

 

239

 

 

201

Other Business

 

18

 

 

6

  • Q2 2022 EPS as reported of $2.18 includes a $0.01 per share net charge related to impairments and restructuring and a $0.04 per share gain related to the mark-to-market adjustment on the Wilmar exchangeable bond. Adjusted EPS, which excludes these items, was $2.15.1

1 Non-GAAP financial measures; see pages 3, 5, 10, 11 and 12 for explanations and reconciliations, including after-tax amounts.

Quarterly Results of Operations

Ag Services & Oilseeds delivered substantially higher year-over-year results.

  • Ag Services results more than doubled versus the year-ago quarter. Global Trade had an outstanding quarter: The destination marketing team’s ability to meet customer demand around the globe helped drive strong volumes and margins, and good execution in global freight, as well as net timing gains of about $65 million for the quarter, contributed to significantly higher year-over-year profits. North America had a solid performance as export volumes remained strong in a good global demand environment, though year-over-year results were lower due to the prior-year’s insurance settlement and strong positioning gains. South America results were higher, based on stronger origination volumes and better margins driven by strong global grain demand.
  • Crushing delivered substantially higher results. Strong soy crush margins drove improved performance in all three regions, as meal and oil demand remained robust. Positive net timing effects of approximately $90 million for the quarter, versus the $70 million of negative timing in the year-ago period, helped drive higher year-over-year results.
  • Refined Products and Other results were similar to the prior-year period, as strong demand for biofuels and food oils drove refining premiums and biodiesel margins, offset by approximately $150 million of negative timing effects versus negative $30 million in the prior-year quarter.
  • Equity earnings from Wilmar were significantly higher versus the second quarter of 2021.

Carbohydrate Solutions results were substantially higher versus the prior-year period.

  • The Starches and Sweeteners subsegment, including ethanol production from our wet mills, delivered much better results due to solid demand as food service volumes reached close to pre-pandemic levels. Corn co-products, including strong demand for corn oil, and effective risk management drove higher ethanol and sweetener margins.
  • Vantage Corn Processors results were slightly higher in an environment of good gasoline demand and strong ethanol blending economics. A $50 million recovery from the USDA Biofuel Producer Recovery Program helped offset the prior year’s strong industrial alcohol results from the now-sold Peoria facility as well as valuation losses on ethanol inventory as prices fell late in the quarter.

Nutrition delivered 16% revenue growth — 20%1 on a constant currency basis — and 19% higher year-over-year operating profit.

  • Human Nutrition delivered higher year-over-year results as demand across its diverse product portfolio remained robust. Flavors grew revenue in North America, EMEA and South America, though profits were lower due to negative currency effects in EMEA as well as weaker results in APAC. Healthy demand for alternative proteins resulted in strong soy protein volumes and margins, as contributions from the Sojaprotein acquisition, as well as good demand for texturants, drove higher results in Specialty Ingredients. Strength across probiotics, including in the recently acquired Deerland business, as well as robust demand for fibers, contributed to a stronger quarter in Health and Wellness.
  • Animal Nutrition profits were up substantially year over year, driven by continued strong volumes and margins in amino acids.

Other Business results increased from the prior-year quarter, driven primarily by higher ADM Investor Services earnings due to higher interest rates.

Other Items of Note

As additional information to help clarify underlying business performance, the table on page 10 includes reported earnings and EPS as well as adjusted earnings and EPS.

Segment operating profit of $1.8 billion for the quarter includes net charges related to impairment of $9 million ($0.01 per share).

In Corporate results, interest expense increased year over year on higher rates and higher short-term borrowings to support working capital needs, as well as higher expense for long-term debt. Unallocated corporate costs were higher year over year due primarily to higher IT operating and project-related costs and higher costs in the company’s centers of excellence. Other Corporate was unfavorable to the prior year primarily due to an ADM Ventures investment revaluation gain in the prior-year quarter. Corporate results also included a loss related to the mark-to-market adjustment on the Wilmar exchangeable bond of $19 million ($0.04 per share).

The effective tax rate for the quarter was approximately 18%, compared to approximately 14% in the prior year. The increased rate was driven primarily by changes in the geographic mix of pretax earnings in addition to the impact of discrete tax items.

Note: Additional Facts and Explanations

Additional facts and explanations about results and industry environment can be found at the end of the ADM Q2 Earnings Presentation at www.adm.com/webcast.

1 FX adjusted revenue is ADM's GAAP revenue adjusted for the impact of fluctuations in foreign currency exchange rates. The Company calculates FX adjusted revenue by converting its current period revenue using the prior period exchange rates and comparing the adjusted amount to its prior period reported results. Management believes providing FX adjusted revenue provides valuable supplemental information regarding its revenue and facilitates period-to-period comparison. FX adjusted revenue is a non-GAAP measure and is not intended to replace or be an alternative to GAAP revenues, the most directly comparable GAAP financial measure.

Conference Call Information

ADM will host a webcast on July 26, 2022, at 8 a.m. Central Time to discuss financial results and provide a company update. To listen to the webcast, 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 our comments and materials in this presentation constitute forward-looking statements that reflect management’s current views and estimates of future economic circumstances, industry conditions, Company performance and financial results. These statements and materials 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 as a result of new information or future events.

About ADM

ADM unlocks the power of nature to enrich the quality of life. We’re a premier global human and animal nutrition company, delivering solutions today with an eye to the future. We’re blazing new trails in health and well-being as our scientists develop groundbreaking products to support healthier living. We’re a cutting-edge innovator leading the way to a new future of plant-based consumer and industrial solutions to replace petroleum-based products. We’re an unmatched agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. And we’re a leader in sustainability, scaling across entire value chains to help decarbonize our industry and safeguard our planet. From the seed of the idea to the outcome of the solution, we give customers an edge in solving the nutritional and sustainability challenges of today and tomorrow. Learn more at www.adm.com.

Financial Tables Follow

Source: Corporate Release Source: ADM

 

Segment Operating Profit, Adjusted Segment Operating Profit (a non-GAAP financial measure)

and Corporate Results

(unaudited)

 

 

Quarter ended

 

 

Six months ended

 

 

June 30

 

 

June 30

 

(In millions)

2022

2021

Change

 

2022

2021

Change

 

 

 

 

 

 

 

 

Segment Operating Profit

$

1,840

 

$

1,145

 

$

695

 

 

$

3,379

 

$

2,250

 

$

1,129

 

Specified items:

 

 

 

 

 

 

 

Gain on sale of assets

 

 

 

(22

)

 

22

 

 

 

(1

)

 

(22

)

 

21

 

Impairment, restructuring, and settlement charges

 

9

 

 

37

 

 

(28

)

 

 

27

 

 

131

 

 

(104

)

Adjusted Segment Operating Profit

$

1,849

 

$

1,160

 

$

689

 

 

$

3,405

 

$

2,359

 

$

1,046

 

 

 

 

 

 

 

 

 

Ag Services and Oilseeds

$

1,119

 

$

570

 

$

549

 

 

$

2,127

 

$

1,347

 

$

780

 

Ag Services

 

407

 

 

190

 

 

217

 

 

 

665

 

 

399

 

 

266

 

Crushing

 

468

 

 

150

 

 

318

 

 

 

896

 

 

532

 

 

364

 

Refined Products and Other

 

130

 

 

130

 

 

 

 

 

328

 

 

231

 

 

97

 

Wilmar

 

114

 

 

100

 

 

14

 

 

 

238

 

 

185

 

 

53

 

 

 

 

 

 

 

 

 

Carbohydrate Solutions

$

473

 

$

383

 

$

90

 

 

$

790

 

$

642

 

$

148

 

Starches and Sweeteners

 

393

 

 

306

 

 

87

 

 

 

709

 

 

528

 

 

181

 

Vantage Corn Processors

 

80

 

 

77

 

 

3

 

 

 

81

 

 

114

 

 

(33

)

 

 

 

 

 

 

 

 

Nutrition

$

239

 

$

201

 

$

38

 

 

$

428

 

$

355

 

$

73

 

Human Nutrition

 

183

 

 

162

 

 

21

 

 

 

324

 

 

290

 

 

34

 

Animal Nutrition

 

56

 

 

39

 

 

17

 

 

 

104

 

 

65

 

 

39

 

 

 

 

 

 

 

 

 

Other Business

$

18

 

$

6

 

$

12

 

 

$

60

 

$

15

 

$

45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Profit

$

1,840

 

$

1,145

 

$

695

 

 

$

3,379

 

$

2,250

 

$

1,129

 

 

 

 

 

 

 

 

 

Corporate Results

$

(321

)

$

(320

)

$

(1

)

 

$

(589

)

$

(601

)

$

12

 

 

 

 

 

 

 

 

 

Interest expense - net

 

(87

)

 

(70

)

 

(17

)

 

 

(163

)

 

(134

)

 

(29

)

Unallocated corporate costs

 

(267

)

 

(248

)

 

(19

)

 

 

(476

)

 

(450

)

 

(26

)

Other

 

13

 

 

49

 

 

(36

)

 

 

49

 

 

59

 

 

(10

)

Specified items:

 

 

 

 

 

 

 

Expenses related to acquisitions

 

 

 

 

 

 

 

 

(2

)

 

 

 

(2

)

Gain on debt conversion option

 

19

 

 

30

 

 

(11

)

 

 

4

 

 

10

 

 

(6

)

Loss on sale of assets

 

 

 

 

 

 

 

 

(3

)

 

 

 

(3

)

Restructuring and settlement charges

 

1

 

 

(81

)

 

82

 

 

 

2

 

 

(86

)

 

88

 

Earnings Before Income Taxes

$

1,519

 

$

825

 

$

694

 

 

$

2,790

 

$

1,649

 

$

1,141

Segment operating profit is ADM’s consolidated income from operations before income tax excluding corporate items. Adjusted segment operating profit, a non-GAAP financial measure, is segment operating profit excluding specified items. 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. 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

 

Six months ended

 

June 30

 

June 30

 

2022

 

2021

 

2022

 

2021

 

(in millions, except per share amounts)

 

 

 

 

 

 

 

 

Revenues

$

27,284

 

 

$

22,926

 

 

$

50,934

 

 

$

41,819

 

Cost of products sold (1)

 

25,184

 

 

 

21,463

 

 

 

46,937

 

 

 

38,808

 

Gross profit

 

2,100

 

 

 

1,463

 

 

 

3,997

 

 

 

3,011

 

Selling, general, and administrative expenses (2)

 

814

 

 

 

739

 

 

 

1,643

 

 

 

1,488

 

Asset impairment, exit, and restructuring costs (3)

 

1

 

 

 

23

 

 

 

2

 

 

 

82

 

Equity in (earnings) losses of unconsolidated affiliates

 

(192

)

 

 

(163

)

 

 

(396

)

 

 

(288

)

Investment income

 

(32

)

 

 

(50

)

 

 

(91

)

 

 

(63

)

Interest expense (4)

 

73

 

 

 

40

 

 

 

165

 

 

 

127

 

Other (income) expense - net (5,6)

 

(83

)

 

 

49

 

 

 

(116

)

 

 

16

 

Earnings before income taxes

 

1,519

 

 

 

825

 

 

 

2,790

 

 

 

1,649

 

Income tax expense (benefit) (7)

 

279

 

 

 

113

 

 

 

486

 

 

 

244

 

Net earnings including noncontrolling interests

 

1,240

 

 

 

712

 

 

 

2,304

 

 

 

1,405

 

 

 

 

 

 

 

 

 

Less: Net earnings (losses) attributable to noncontrolling interests

 

4

 

 

 

 

 

 

14

 

 

 

4

 

Net earnings attributable to ADM

$

1,236

 

 

$

712

 

 

$

2,290

 

 

$

1,401

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

2.18

 

 

$

1.26

 

 

$

4.03

 

 

$

2.48

 

 

 

 

 

 

 

 

 

Average diluted shares outstanding

 

568

 

 

 

566

 

 

 

568

 

 

 

565

 

 

 

 

 

 

 

 

 

(1) Includes charges related to inventory writedown of $14 million and $25 million in the current quarter and YTD respectively, and $13 million in the prior year quarter and YTD. Current YTD was partially offset by an insurance settlement of $2 million.

 

(2) Includes a $7 million reversal of a charge related to receivable impairment in the current quarter and a legal settlement of $38 million in the prior YTD.

 

(3) Includes net charges related to the impairment of certain assets and restructuring of $1 million and $2 million in the current quarter and YTD, respectively, and $23 million and $82 million in the prior year quarter and YTD, respectively.

 

(4) Includes gains related to the mark-to-market adjustment of the conversion option of the exchangeable bond issued in August 2020 of $19 million and $4 million in the current quarter and YTD, respectively, and gains of $30 million and $10 million in the prior year quarter and YTD, respectively.

 

(5) Includes net losses related to the sale of certain assets of $2 million in the current YTD and gains of $22 million in the prior year quarter and YTD.

 

(6) Includes a pension settlement charge of $82 million in the prior year quarter and YTD. Also, includes exit costs of $2 million in the prior YTD.

 

(7) Includes the tax benefit impact of the above specified items and tax discrete items totaling $3 million and $11 million in the current quarter and YTD, respectively, and $24 million and $49 million in the prior year quarter and YTD, respectively.

 

Summary of Financial Condition

(unaudited)

 

 

 

June 30, 2022

 

June 30, 2021

 

 

(in millions)

Net Investment In

 

 

 

 

Cash and cash equivalents (a)

 

$

906

 

$

869

Operating working capital (b)

 

 

14,537

 

 

11,628

Property, plant, and equipment

 

 

9,680

 

 

9,873

Investments in and advances to affiliates

 

 

5,464

 

 

5,113

Goodwill and other intangibles

 

 

6,547

 

 

5,266

Other non-current assets

 

 

2,490

 

 

2,202

 

 

$

39,624

 

$

34,951

Financed By

 

 

 

 

Short-term debt (a)

 

$

2,352

 

$

1,289

Long-term debt, including current maturities (a)

 

 

9,166

 

 

8,432

Deferred liabilities

 

 

3,419

 

 

3,556

Temporary equity

 

 

261

 

 

71

Shareholders’ equity

 

 

24,426

 

 

21,603

 

 

$

39,624

 

$

34,951

(a)

Net debt is calculated as short-term debt plus long-term debt (including current maturities) less cash and cash equivalents.

(b)

Current assets (excluding cash and cash equivalents) less current liabilities (excluding short-term debt and current maturities of long-term debt).

 

Summary of Cash Flows

(unaudited)

 

 

 

Six months ended

 

 

June 30

 

 

2022

 

2021

 

 

(in millions)

Operating Activities

 

 

 

 

Net earnings

 

$

2,304

 

 

$

1,405

 

Depreciation and amortization

 

 

514

 

 

 

492

 

Asset impairment charges

 

 

4

 

 

 

54

 

(Gains) losses on sales/revaluation of assets

 

 

(42

)

 

 

(79

)

Other - net

 

 

438

 

 

 

330

 

Other changes in operating assets and liabilities

 

 

(3,893

)

 

 

805

 

Total Operating Activities

 

 

(675

)

 

 

3,007

 

 

 

 

 

 

Investing Activities

 

 

 

 

Purchases of property, plant and equipment

 

 

(500

)

 

 

(427

)

Net assets of businesses acquired

 

 

 

 

 

(5

)

Proceeds from sale of business/assets

 

 

12

 

 

 

58

 

Investments in and advances to affiliates

 

 

(58

)

 

 

(8

)

Other investing activities

 

 

(101

)

 

 

(12

)

Total Investing Activities

 

 

(647

)

 

 

(394

)

 

 

 

 

 

Financing Activities

 

 

 

 

Long-term debt borrowings

 

 

751

 

 

 

595

 

Long-term debt payments

 

 

 

 

 

(2

)

Net borrowings (payments) under lines of credit

 

 

1,414

 

 

 

(752

)

Share repurchases

 

 

(200

)

 

 

 

Cash dividends

 

 

(453

)

 

 

(417

)

Other

 

 

(21

)

 

 

 

Total Financing Activities

 

 

1,491

 

 

 

(576

)

 

 

 

 

 

Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents

 

 

169

 

 

 

2,037

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents - beginning of period

 

 

7,454

 

 

 

4,646

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of period

 

$

7,623

 

 

$

6,683

 

 

Segment Operating Analysis

(unaudited)

 

 

Quarter ended

 

Six months ended

 

June 30

 

June 30

 

2022

 

2021

 

2022

 

2021

 

(in ‘000s metric tons)

Processed volumes (by commodity)

 

 

 

 

 

 

 

Oilseeds

 

8,208

 

 

8,778

 

 

16,699

 

 

17,738

Corn

 

4,776

 

 

5,042

 

 

9,588

 

 

8,692

Total processed volumes

 

12,984

 

 

13,820

 

 

26,287

 

 

26,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended

 

Six months ended

 

June 30

 

June 30

 

2022

 

2021

 

2022

 

2021

 

(in millions)

Revenues

 

 

 

 

 

 

 

Ag Services and Oilseeds

$

21,429

 

$

18,271

 

$

39,682

 

$

33,278

Carbohydrate Solutions

 

3,751

 

 

2,820

 

 

7,117

 

 

5,043

Nutrition

 

2,003

 

 

1,733

 

 

3,927

 

 

3,296

Other Business

 

101

 

 

102

 

 

208

 

 

202

Total revenues

$

27,284

 

$

22,926

 

$

50,934

 

$

41,819

 

Adjusted Earnings Per Share

A non-GAAP financial measure

(unaudited)

 

 

Quarter ended June 30

 

Six months ended June 30

 

2022

2021

 

2022

2021

 

In millions

Per share

In millions

Per share

 

In millions

Per share

In millions

Per share

Net earnings and fully diluted EPS

$

1,236

 

$

2.18

 

$

712

 

$

1.26

 

 

$

2,290

 

$

4.03

 

$

1,401

 

$

2.48

 

Adjustments:

 

 

 

 

 

 

 

 

 

Loss (gains) on sales of assets and businesses (a)

 

 

 

 

 

(17

)

 

(0.03

)

 

 

2

 

 

 

 

(17

)

 

(0.03

)

Impairment, restructuring, and settlement charges (b)

 

6

 

 

0.01

 

 

90

 

 

0.16

 

 

 

20

 

 

0.04

 

 

164

 

 

0.29

 

Expenses related to acquisitions (c)

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

Loss (gain) on debt conversion option (d)

 

(19

)

 

(0.04

)

 

(30

)

 

(0.06

)

 

 

(4

)

 

(0.01

)

 

(10

)

 

(0.02

)

Tax adjustment (e)

 

(1

)

 

 

 

(1

)

 

 

 

 

(5

)

 

(0.01

)

 

(1

)

 

 

Sub-total adjustments

 

(14

)

 

(0.03

)

 

42

 

 

0.07

 

 

 

14

 

 

0.02

 

 

136

 

 

0.24

 

Adjusted net earnings and adjusted EPS

$

1,222

 

$

2.15

 

$

754

 

$

1.33

 

 

$

2,304

 

$

4.05

 

$

1,537

 

$

2.72

 

 

 

 

 

 

 

 

 

 

 

(a)

Current YTD loss on sale of assets of $2 million pretax ($2 million after tax), tax effected using the Company’s U.S. income tax rate. Prior year quarter and YTD gains of $22 million pretax ($17 million after tax) were related to the sale of certain assets, tax effected using the Company’s U.S. income tax rate.

(b)

Current quarter and YTD charges of $8 million and $25 million pretax ($6 million and $20 million after tax), respectively, were primarily related to the impairment of certain assets partially offset by a restructuring adjustment, tax effected using the applicable tax rates. Current YTD charges were also partially offset by an insurance settlement, tax effected using the applicable tax rate. Prior year quarter and YTD charges of $118 million and $217 million pretax, respectively, ($90 million and $164 million after tax, respectively) were related to the impairment of certain assets, restructuring, and legal and pension settlements, tax effected using the applicable tax rates.

(c)

Current YTD expenses of $2 million pretax ($1 million after tax) were related to the Deerland and Sojaprotein acquisitions, tax effected using the applicable tax rates.

(d)

Current quarter and YTD gain on debt conversion option of $19 million and $4 million pretax, respectively, ($19 million and $4 million after tax, respectively) and prior year quarter and YTD gain on debt conversion option of $30 million and $10 million pretax, respectively, ($30 million and $10 million after tax, respectively), were related to the mark-to-market adjustment of the conversion option of the exchangeable bonds issued in August 2020, tax effected using the applicable tax rate.

(e)

Tax adjustment due to certain discrete items totaling $1 million and $5 million in the current quarter and YTD, respectively, and $1 million in the prior year quarter and YTD.

Adjusted net earnings reflects ADM’s reported net earnings after removal of the effect on net earnings of specified items as more fully described above. Adjusted EPS reflects ADM’s fully diluted EPS after removal of the effect on EPS as reported of specified items as more fully described above. Management believes that Adjusted net earnings and Adjusted EPS are useful measures of ADM’s performance because they provide investors additional information about ADM’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. These non-GAAP financial measures are not intended to replace or be alternatives to net earnings and EPS as reported, the most directly comparable GAAP financial measures, 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

 

Sep. 30, 2021

 

Dec. 31, 2021

 

Mar. 31, 2022

 

June 30, 2022

 

June 30, 2022

 

 

 

 

 

 

 

 

 

 

Net earnings attributable to ADM

$

526

 

 

$

782

 

 

$

1,054

 

 

$

1,236

 

 

$

3,598

 

Adjustments:

 

 

 

 

 

 

 

 

 

Interest expense

 

61

 

 

 

77

 

 

 

92

 

 

 

73

 

 

 

303

 

Other adjustments

 

39

 

 

 

66

 

 

 

17

 

 

 

7

 

 

 

129

 

Total adjustments

 

100

 

 

 

143

 

 

 

109

 

 

 

80

 

 

 

432

 

Tax on adjustments

 

(24

)

 

 

(14

)

 

 

(26

)

 

 

(19

)

 

 

(83

)

Net adjustments

 

76

 

 

 

129

 

 

 

83

 

 

 

61

 

 

 

349

 

Total Adjusted ROIC Earnings

$

602

 

 

$

911

 

 

$

1,137

 

 

$

1,297

 

 

$

3,947

 

 

 

 

 

 

 

 

 

 

 

Adjusted Invested Capital (in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Trailing Four

 

Sep. 30, 2021

 

Dec. 31, 2021

 

Mar. 31, 2022

 

June 30, 2022

 

Quarter Average

 

 

 

 

 

 

 

 

 

 

Equity (1)

$

21,969

 

$

22,477

 

$

23,722

 

$

24,393

 

$

23,140

 

+ Interest-bearing liabilities (2)

 

8,941

 

 

9,546

 

 

13,079

 

 

11,524

 

 

10,773

 

Other adjustments

 

29

 

 

70

 

 

13

 

 

5

 

 

29

 

Total Adjusted Invested Capital

$

30,939

 

$

32,093

 

$

36,814

 

$

35,922

 

$

33,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Return on Invested Capital

 

 

 

 

 

 

 

 

 

 

 

11.6

%

(1) Excludes noncontrolling interests

(2) Includes short-term debt, current maturities of long-term debt, finance lease obligations, and long-term debt

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 and 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 specified items. Management believes Adjusted ROIC is a useful financial measure because it provides investors information about ADM’s returns excluding the impacts of 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.

  Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)

A non-GAAP financial measure

(unaudited)

 

The tables below provide a reconciliation of earnings before income taxes to adjusted EBITDA and adjusted EBITDA by segment for the trailing four quarters ended June 30, 2022.

 

 

 

 

 

 

 

 

 

 

Four Quarters

 

Quarter Ended

 

Ended

 

Sep. 30, 2021

 

Dec. 31, 2021

 

Mar. 31, 2022

 

June 30, 2022

 

June 30, 2022

 

 

 

 

 

(in millions)

 

 

 

 

Earnings before income taxes

$

653

 

 

$

1,011

 

 

$

1,271

 

 

$

1,519

 

 

$

4,454

 

Interest expense

 

61

 

 

 

77

 

 

 

92

 

 

 

73

 

 

 

303

 

Depreciation and amortization

 

247

 

 

 

257

 

 

 

257

 

 

 

257

 

 

 

1,018

 

Losses (gains) on sales of assets and businesses

 

 

 

 

(55

)

 

 

2

 

 

 

 

 

 

(53

)

Asset impairment, exit, restructuring, and settlement charges

 

3

 

 

 

80

 

 

 

17

 

 

 

8

 

 

 

108

 

Railroad maintenance expense

 

31

 

 

 

33

 

 

 

 

 

 

9

 

 

 

73

 

Debt extinguishment charges

 

36

 

 

 

 

 

 

 

 

 

 

 

 

36

 

Expenses related to acquisitions

 

3

 

 

 

4

 

 

 

2

 

 

 

 

 

 

9

 

Adjusted EBITDA

$

1,034

 

 

$

1,407

 

 

$

1,641

 

 

$

1,866

 

 

$

5,948

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

Four Quarters

 

Quarter Ended

 

Ended

 

Sep. 30, 2021

 

Dec. 31, 2021

 

Mar. 31, 2022

 

June 30, 2022

 

June 30, 2022

 

 

 

 

 

(in millions)

 

 

 

 

Ag Services and Oilseeds

$

711

 

 

$

902

 

 

$

1,096

 

 

$

1,207

 

 

$

3,916

 

Carbohydrate Solutions

 

297

 

 

 

510

 

 

 

396

 

 

 

550

 

 

 

1,753

 

Nutrition

 

230

 

 

 

220

 

 

 

254

 

 

 

304

 

 

 

1,008

 

Other Business

 

(3

)

 

 

17

 

 

 

44

 

 

 

24

 

 

 

82

 

Corporate

 

(201

)

 

 

(242

)

 

 

(149

)

 

 

(219

)

 

 

(811

)

Adjusted EBITDA

$

1,034

 

 

$

1,407

 

 

$

1,641

 

 

$

1,866

 

 

$

5,948

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA is defined as earnings before taxes, interest, and depreciation and amortization, adjusted for specified items. The Company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense and depreciation and amortization to earnings before income taxes. Management believes that adjusted EBITDA is a useful measure of the Company’s performance because it provides investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to earnings before income taxes, the most directly comparable GAAP financial measure.

Media Relations Jackie Anderson 312-634-8484 Investor Relations Michael Cross 217-451-4647

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