January 24, 2003 | FOR IMMEDIATE RELEASE |
ARCHER DANIELS MIDLAND REPORTS SECOND QUARTER RESULTS
Decatur, IL -- January 24, 2003 -- Archer Daniels Midland (NYSE: ADM)
Second quarter earnings per share were $ .20 compared to $ .23 last year as Operating Profit decreasedto $297 million from $341 million.
* Oilseeds Processing results were negatively impacted by lower
North American Crush margins.
* Corn Processing results increased due to improved ethanol demand.
* Wheat Processing results decreased due to adverse crop conditions.
* Agricultural Services results were negatively affected by
difficult market conditions.
* Other results improved, driven primarily by bioproducts, cocoa
and other international businesses.
Second Quarter Highlights.
(Amounts in thousands, except per share data and percentages)
| | SECOND QUARTER ENDED |
| | 12/31/02 | 12/31/01 | % CHANGE |
| Net sales and other operating income | $ 7,807,382 | | $ 5,463,996 | 43% |
| Operating profit | $ 297,369 | | $ 341,314 | -13% |
| Net earnings | $ 131,245 | | $ 150,025 | -13% |
| Earnings per share | $ 0.20 | | $ 0.23 | -13% |
| Average number of shares outstanding | 646,178 | | 660,285 | -2% |
| | SIX MONTHS ENDED |
| | 12/31/02 | 12/31/01 | % CHANGE |
| Net sales and other operating income | $ 14,751,277 | | $ 10,667,679 | 38% |
| Operating profit | $ 537,315 | | $ 562,545 | -4% |
| Net earnings | $ 239,320 | | $ 281,643 | -15% |
| Earnings per share | $ 0.37 | | $ 0.43 | -14% |
| Average number of shares outstanding | 647,123 | | 661,446 | -2% |
Improved profits in international oilseeds processing did not fully offset
lower North American results. Poor crops in North America negatively
impacted grain storage and transportation revenues. Corn processing,
cocoa and bioproducts contributed strong results for the quarter. Our
growing global franchise continues to produce value for our shareholders.
G. Allen Andreas, Chairman and Chief Executive
Archer Daniels Midland
Page 2
Net earnings for the quarter ended December 31, 2002 were $ 131,245,000 or
$ .20 per share compared with $ 150,025,000 or $ .23 per share last year.
This year's results include a $ .02 per share gain from partial settlement
of the Company's claims related to vitamin antitrust litigation. Last year's
results included a $ .04 per share gain related to the vitamin antitrust litigation
settlements and a $ .02 per share loss related to security transactions. For
fiscal year 2003, six months net earnings were $ 239,320,000 or $ .37 per share
compared to $ 281,643,000 or $ .43 per share last year. Current year's six month
results include a gain of $ .02 per share from the vitamin antitrust litigation
settlements. Last year's six month results included a gain related to the vitamin
antitrust litigation settlements of $ .04 per share and a gain of $ .03 per share
from security transactions.
Segment operating profit decreased to $ 297,369,000 from $ 341,314,000 for
the quarter and to $ 537,315,000 from $ 562,545,000 for the six months.
The decline in operating profits for the quarter and six months resulted
primarily from lower North American oilseed crush margins and lower
operating results in the Agricultural Services and Wheat Processing segments
due to difficult operating conditions resulting from drought induced short crops.
These declines were partially offset by improved profits in international oilseed
processing, increased corn processing results due to improved ethanol demand and stronger results in cocoa and bioproducts operations.
Conference Call Information
The Company will hold a conference call to discuss second quarter results
at 10:00 a.m. Central Time on January 24, 2003.
To participate in the live conference call on listen-only mode, please dial
800-513-1181 or 952-556-2826 at least five minutes before the call begins.
To listen to a live broadcast via the Internet, please access
the CCBN Web site at http://www.ccbn.com or the ADM Web site at http://www.admworld.com.
A replay will be available on these web sites for approximately 20 days.
Archer Daniels Midland Company (ADM) is a world leader in agricultural
processing. The Company is one of the world's largest processors of soybeans,
corn, wheat and cocoa. ADM is also a leader in soy meal and oil, ethanol,
high fructose corn syrup (HFCS) and flour. In addition, ADM is building a
position in such value-added products as specialty food ingredients, bioproducts
and nutraceuticals (such as Vitamin E and sterols). Headquartered in Decatur,
Illinois, ADM has over 24,000 employees, 260 processing plants and net sales for
the fiscal year ended June 30, 2002 of $22.6 billion.
Additional information can be found on ADM's Web site at http://www.admworld.com.
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| Contacts: Larry Cunningham Senior Vice President Corporate Affairs 217/424-5413 | Dwight Grimestad Vice President, Investor Relations 217/424-4586 |
(Financial Table Follows)
January 24, 2003
ARCHER DANIELS MIDLAND COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
| | Three months ended | | Six months ended |
| | December 31 | | December 31 |
| | 2002 | 2001 | | 2002 | 2001 |
| | (In thousands, except per share amounts) |
| Net sales and other operating income | $ 7,807,382 | $ 5,463,996 | | $ 14,751,277 | $ 10,667,679 |
| Cost of products sold | 7,316,495 | 4,956,708 | | 13,840,407 | 9,754,894 |
| | ____________ | ____________ | | ____________ | ____________ |
| Gross Profit | 490,887 | 507,288 | | 910,870 | 912,785 |
| Selling, general and administrative expenses | 246,197 | 209,746 | | 462,342 | 394,009 |
| Other expense (income)- net | 55,848 | 71,941 | | 104,182 | 95,253 |
| | ____________ | ____________ | | ____________ | ____________ |
| Earnings before income taxes | 188,842 | 225,601 | | 344,346 | 423,523 |
| Income Taxes | 57,597 | 75,576 | | 105,026 | 141,880 |
| | ____________ | ____________ | | ____________ | ____________ |
| Net Earnings | $ 131,245 | $ 150,025 | | $ 239,320 | $ 281,643 |
| | =========== | =========== | | =========== | =========== |
| Basic and diluted earnings per common share | $ 0.20 | $ 0.23 | | $ 0.37 | $ 0.43 |
| | =========== | =========== | | =========== | =========== |
| Average number of shares outstanding | 646,178 | 660,285 | | 647,123 | 661,446 |
| | =========== | =========== | | =========== | =========== |
| Other expense (income) - net consists of: | | | | | |
| Interest expense | $ 95,293 | $ 92,465 | | $ 179,813 | $ 184,719 |
| Investment Income | (29,078) | (26,636) | | (62,768) | (59,920) |
| Net (gain) loss on securities transactions | 2,704 | 19,983 | | 2,678 | (35,553) |
| Equity in (earnings) losses of affiliates | (9,278) | (8,973) | | (10,582) | 10,866 |
| Other - net | (3,793) | (4,898) | | (4,959) | (4,859) |
| | ____________ | ____________ | | ____________ | ____________ |
| | $ 55,848 | $ 71,941 | | $ 104,182 | $ 95,253 |
| | =========== | =========== | | =========== | =========== |
| Operating profit by segment is as follows: | | | |
| Oilseeds Processing | $ 102,724 | $ 132,786 | | $ 179,098 | $ 218,060 |
| Corn Processing | 71,317 | 46,619 | | 155,256 | 133,059 |
| Wheat Processing | 18,821 | 31,352 | | 38,706 | 51,916 |
| Agricultural Services | 34,959 | 74,027 | | 75,072 | 89,944 |
| Other | 69,548 | 56,530 | | 89,183 | 69,566 |
| | ____________ | ____________ | | ____________ | ____________ |
| Total Operating Profit | $ 297,369 | $ 341,314 | | $ 537,315 | $ 562,545 |
| Corporate (includes securities transactions) | (108,527) | (115,573) | | (192,969) | (139,022) |
| | ____________ | ____________ | | ____________ | ____________ |
| Total Operating Profit | $ 188,842 | $ 225,601 | | $ 344,346 | $ 423,523 |
| | =========== | =========== | | =========== | =========== |
