Reported EPS of $1.42, Adjusted EPS1 of
$1.46
ADM (NYSE: ADM) today reported financial results for the quarter
ended March 31, 2024.
First Quarter 2024 Highlights
- Segment operating profit of $1,311 million, adjusted segment
operating profit1 of $1,317 million
- Trailing four-quarter average adjusted return on invested
capital (ROIC)1 of 11.2%
“ADM’s solid first quarter results showcased our team’s ability
to execute our strategy with agility in the face of anticipated
challenging market conditions,” said Chair of the Board and CEO
Juan Luciano.
“To manage through the cycle, we are driving key strategic
initiatives across the business, including the ramp-up of
production at our Green Bison JV and the scaling of our
regenerative agriculture and BioSolutions efforts. Our productivity
initiative pipeline is also expanding and we are already seeing the
results of our actions to reduce supply chain complexity and better
serve our customers in Nutrition as the segment delivered
sequential quarterly improvement in operating profit. Our capital
deployment actions such as our accelerated share repurchase program
also continue to contribute to enhanced shareholder returns.
Driving these priorities forward, we remain confident in our
guidance for the year.”
First Quarter 2024 Results
1Q 2024 Results Overview
($ in millions except per share
amounts)
Segment Operating
Profit
EPS (as reported)
GAAP
$1,311
$1.42
vs. 1Q 2023
(24)%
(33)%
Adjusted Segment Operating
Profit1
Adjusted EPS1
NON-GAAP
$1,317
$1.46
vs 1Q 2023
(24)%
(30)%
1 Non-GAAP financial measures; see pages
4, 5, 6, 11 and 12 for explanations and reconciliations.
Summary of First Quarter
2024
For the first quarter ended March 31, 2024, earnings per share
on a GAAP basis were $1.42. Segment operating profit on a GAAP
basis was $1,311 million and included charges of $6 million, or
approximately $0.01 per share, related to impairments and
restructuring.
Adjusted segment operating profit was $1,317 million for the
first quarter, a 24% decrease versus the prior year period.
Adjusted earnings per share were $1.46. Lower pricing and execution
margins led to a decline of $1.00 per share versus the prior year
period, largely reflecting the impact of lower crush and
origination margins, as well as lower mark-to-market timing impacts
of $0.38 per share. Improved input and manufacturing costs,
primarily related to lower energy costs, led to an increase of
$0.15 per share versus the prior year. Volume improvement
represented a $0.20 per share increase versus the prior year
period, primarily reflecting higher processed volumes in AS&O.
Higher equity earnings led to a $0.07 per share increase in the
first quarter of 2024 versus the prior year period.
1Q 2024 Segment Overview
($ in millions, except where noted)
1Q 2024
1Q 20232
% Change
Adjusted Segment Operating
Profit1
$1,317
$1,725
(24)%
Ag Services & Oilseeds
864
1,211
(29)%
Carbohydrate Solutions
248
279
(11)%
Nutrition
84
138
(39)%
Other
121
97
25%
1 Non-GAAP financial measure; see pages 5
and 6 for explanation and reconciliation.
2 2023 Ag Services & Oilseeds,
Carbohydrate Solutions, and Nutrition segment operating profits
have been revised to reflect immaterial error corrections with no
change to total Adjusted Segment Operating Profit. See Note 13,
Segment Information of the Company’s consolidated financial
statements included in the Quarterly Report on Form 10-Q for the
quarter ended March 31, 2024.
Ag Services and Oilseeds
Summary
AS&O segment operating profit was $864 million during the
first quarter of 2024, down 29% compared to the prior year period.
The Ag Services subsegment operating profit was 33% lower,
primarily due to the stabilization of trade flows leading to lower
Global Trade and risk management results in comparison to the prior
year. Slower farmer selling also negatively impacted export volumes
and margins in South America. In the Crushing subsegment, operating
profit was 27% lower versus the prior year as increased imports of
used cooking oil and the anticipation of large South American
supplies negatively impacted North American soy crush margins.
During the quarter, there were positive mark-to-market timing
impacts of approximately $40 million versus approximately $240
million of positive impacts a year ago. Refined Products and Other
(RPO) subsegment results of $170 million were lower versus the
prior year, as the increased imports of used cooking oil negatively
impacted refining margins in North America. During the quarter,
there were negative mark-to-market timing impacts of $30 million
versus positive impacts of approximately $40 million in the prior
year period. Equity earnings from Wilmar were $149 million during
the first quarter, approximately 37% higher than the prior
year.
1Q 2024 AS&O Overview
($ in millions, except where noted)
1Q 2024
1Q 2023
% Change
Segment Operating Profit
$864
$1,211
(29)%
Ag Services
232
348
(33)%
Crushing
313
427
(27)%
Refined Products and Other
170
327
(48)%
Wilmar
149
109
37%
Carbohydrate Solutions
Summary
Carbohydrate Solutions segment operating profit was $248 million
during the first quarter of 2024, down 11% compared to the prior
year period. The Starches & Sweeteners subsegment decreased $52
million, as strong starches and sweeteners margins were offset by
lower domestic ethanol margins due to strong industry production
and elevated stocks, as well as moderating margins in the EMEA
region. In the Vantage Corn Processing (VCP) subsegment, results
improved $21 million as strong demand for sustainably certified
exports of ethanol supported volumes and higher margins.
1Q 2024 Carbohydrate Solutions Overview
($ in millions, except where noted)
1Q 2024
1Q 2023
% Change
Segment Operating Profit
$248
$279
(11)%
Starches and Sweeteners
261
313
(17)%
Vantage Corn Processors
(13)
(34)
62%
Nutrition Summary
Nutrition segment operating profit was $84 million during the
first quarter of 2024, down 39% compared to the prior year period.
Human Nutrition subsegment operating profit was $76 million,
approximately $62 million lower versus the prior year period, as
impacts related to unplanned downtime at Decatur East and a
normalizing texturants market negatively impacted margins. In the
Animal Nutrition subsegment, operating profit of $8 million was
higher year-over-year as cost optimization efforts and lower input
costs bolstered margins.
1Q 2024 Nutrition Overview
($ in millions, except where noted)
1Q 2024
1Q 2023
% Change
Segment Operating Profit
$84
$138
(39)%
Human Nutrition
76
138
(45)%
Animal Nutrition
8
—
—%
Other and Corporate
Summary
For the first quarter, Other segment operating profit was $121
million, up 25% compared to the prior year, supported by higher
Captive Insurance results due to higher program premiums and lower
claims. ADM Investor Services results improved on higher net
interest income.
In Corporate, unallocated corporate costs increased versus the
prior year on higher global technology investments to support
digital transformation efforts and increased legal fees. Other
Corporate was unfavorable compared to the prior year due to
investment valuation losses of approximately $18 million in our ADM
Ventures portfolio.
Outlook
The Company affirms its previously provided EPS guidance for the
full year. ADM continues to expect adjusted earnings per share2 in
the range of $5.25 to $6.25 for the full year.
_____________________________
2Forecasted GAAP Earnings
Reconciliation: ADM is not presenting forecasted GAAP earnings
per diluted share or a quantitative reconciliation to forecasted
adjusted earnings per diluted share in reliance on the unreasonable
efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation
S-K. ADM is unable to predict with reasonable certainty and without
unreasonable effort the impact of any impairment and timing of
restructuring-related and other charges, along with
acquisition-related expenses and the outcome of certain regulatory,
legal and tax matters. The financial impact of these items is
uncertain and is dependent on various factors, including timing,
and could be material to our Consolidated Statements of
Earnings.
Conference Call
Information
ADM will host a webcast today, April 30, 2024, 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.
About ADM
ADM unlocks the power of nature to enrich the quality of life.
We’re an essential global agricultural supply chain manager and
processor, providing food security by connecting local needs with
global capabilities. We’re a premier human and animal nutrition
provider, offering one of the industry’s broadest portfolios of
ingredients and solutions from nature. We’re a trailblazer in
health and well-being, with an industry-leading range of products
for consumers looking for new ways to live healthier lives. We’re a
cutting-edge innovator, guiding the way to a future of new consumer
and industrial solutions. And we're a leader in sustainability,
scaling across entire value chains to help decarbonize the multiple
industries we serve. Around the globe, our innovation and expertise
are meeting critical needs while nourishing quality of life and
supporting a healthier planet. Learn more at www.adm.com.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve substantial risks and uncertainties. All statements,
other than statements of historical fact included in this release,
are forward-looking statements. You can identify forward-looking
statements by the fact they do not relate strictly to historical or
current facts. These statements may include words such as
“anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,”
“believe,” “may,” “outlook,” “will,” “should,” “can have,”
“likely,” and other words and terms of similar meaning in
connection with any discussion of the timing or nature of future
operating or financial performance or other events. All
forward-looking statements are subject to significant risks,
uncertainties and changes in circumstances that could cause actual
results and outcomes to differ materially from the forward-looking
statements. These forward-looking statements are not guarantees of
future performance and involve risks, assumptions and
uncertainties, including, without limitation, those that are
described in the Company’s most recent Annual Report on Form 10-K
and in other documents that the Company files or furnishes with the
Securities and Exchange Commission. Should one or more of these
risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual outcomes may vary materially
from those indicated or anticipated by such forward-looking
statements. Accordingly, you are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date they are made. Except to the extent required by law,
ADM does not undertake, and expressly disclaims, any duty or
obligation to update publicly any forward-looking statement after
the date of this announcement, whether as a result of new
information, future events, changes in assumptions or
otherwise.
Non-GAAP Financial
Measures
The Company uses certain “Non-GAAP” financial measures as
defined by the Securities and Exchange Commission. These are
measures of performance not defined by accounting principles
generally accepted in the United States, and should be considered
in addition to, not in lieu of, GAAP reported measures.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in this
press release.
Adjusted net earnings and Adjusted earnings per share (EPS).
Adjusted net earnings reflects ADM’s reported net earnings after
removal of the effect on net earnings of specified items as more
fully described in the reconciliation tables below. Adjusted EPS
reflects ADM’s fully diluted EPS after removal of the effect on EPS
as reported of specified items as more fully described in the
reconciliation tables below. 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.
Segment operating profit and adjusted segment operating profit.
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. 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.
Adjusted Return on Invested Capital (ROIC). 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 on borrowings and specified
items. Adjusted invested capital is the sum of ADM’s equity
(excluding noncontrolling interests) and interest-bearing
liabilities 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 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.
ADM presents guidance of forecasted adjusted EPS for the full
year 2024 in this release. ADM is not able to present forecasted
GAAP EPS or a quantitative reconciliation to forecasted adjusted
EPS in reliance on the unreasonable efforts exemption provided
under Item 10(e)(1)(i)(B) of Regulation S-K. ADM is unable to
predict with reasonable certainty and without unreasonable effort
the impact of any impairment and timing of restructuring-related
and other charges, along with acquisition-related expenses and the
outcome of certain regulatory, legal and tax matters. The financial
impact of these items is uncertain and is dependent on various
factors, including timing, and could be material to ADM’s
consolidated statements of earnings.
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
March 31
(In millions)
2024
2023
Change
Segment Operating Profit
$
1,311
$
1,719
$
(408
)
Specified items:
(Gain) loss on sales of assets
—
(1
)
1
Impairment and restructuring charges
6
7
(1
)
Adjusted Segment Operating
Profit
$
1,317
$
1,725
$
(408
)
Ag Services and Oilseeds
$
864
$
1,211
$
(347
)
Ag Services
232
348
(116
)
Crushing
313
427
(114
)
Refined Products and Other
170
327
(157
)
Wilmar
149
109
40
Carbohydrate Solutions
$
248
$
279
$
(31
)
Starches and Sweeteners
261
313
(52
)
Vantage Corn Processors
(13
)
(34
)
21
Nutrition
$
84
$
138
$
(54
)
Human Nutrition
76
138
(62
)
Animal Nutrition
8
—
8
Other Business
$
121
$
97
$
24
Segment Operating Profit
$
1,311
$
1,719
$
(408
)
Corporate Results
$
(426
)
$
(322
)
$
(104
)
Interest expense - net
(110
)
(103
)
(7
)
Unallocated corporate costs
(304
)
(248
)
(56
)
Other
—
24
(24
)
Specified items:
Gain on debt conversion option
—
5
(5
)
Restructuring charges
(12
)
—
(12
)
Earnings Before Income Taxes
$
885
$
1,397
$
(512
)
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
March 31
2024
2023
(in millions, except per share
amounts)
Revenues
$
21,847
$
24,072
Cost of products sold
20,188
21,992
Gross profit
1,659
2,080
Selling, general, and administrative
expenses
951
881
Asset impairment, exit, and restructuring
costs
18
7
Equity in (earnings) losses of
unconsolidated affiliates
(212
)
(174
)
Interest and investment income
(123
)
(134
)
Interest expense (1)
166
147
Other (income) expense - net (2)
(26
)
(44
)
Earnings before income taxes
885
1,397
Income tax expense (benefit) (3)
166
225
Net earnings including noncontrolling
interests
719
1,172
Less: Net earnings (losses) attributable
to noncontrolling interests
(10
)
2
Net earnings attributable to
ADM
$
729
$
1,170
Diluted earnings per common
share
$
1.42
$
2.12
Average diluted shares outstanding
514
551
(1) Includes (gains) losses related to the
mark-to-market adjustment of the conversion option of the
exchangeable bond issued in August 2020 of $(5) million in the
prior-year quarter.
(2) Includes net (gains) losses related to
the sale of certain assets of $(1) million in the prior-year
quarter.
(3) Includes the tax expense (benefit)
impact of specified items and tax discrete items totaling $3
million and $(20) million in the current quarter and prior-year
quarter, respectively.
Summary of Financial Condition
(unaudited)
March 31, 2024
March 31, 2023
(in millions)
Net Investment In
Cash and cash equivalents
$
830
$
899
Operating working capital
10,181
13,457
Property, plant, and equipment
10,596
10,071
Investments in affiliates
5,566
5,525
Goodwill and other intangibles
7,051
6,583
Other non-current assets
2,612
2,298
$
36,836
$
38,833
Financed By
Short-term debt
$
1,734
$
1,809
Long-term debt, including current
maturities
8,246
8,697
Deferred liabilities
3,317
3,130
Temporary equity
307
301
Shareholders’ equity
23,232
24,896
$
36,836
$
38,833
Summary of Cash Flows
(unaudited)
Three months ended
March 31
2024
2023
(in millions)
Operating Activities
Net earnings
$
719
$
1,172
Depreciation and amortization
280
259
Asset impairment charges
3
3
(Gains) losses on sales/revaluation of
assets
14
(11
)
Other - net
(134
)
(113
)
Other changes in operating assets and
liabilities
(182
)
(2,920
)
Total Operating Activities
700
(1,610
)
Investing Activities
Purchases of property, plant and
equipment
(328
)
(327
)
Net assets of businesses acquired
(915
)
—
Proceeds from sale of business/assets
6
13
Investments in affiliates
(4
)
(4
)
Other investing activities
11
(10
)
Total Investing Activities
(1,230
)
(328
)
Financing Activities
Long-term debt payments
—
(2
)
Net borrowings (payments) under lines of
credit
1,619
1,306
Share repurchases
(1,327
)
(351
)
Cash dividends
(257
)
(248
)
Other
(37
)
(107
)
Total Financing Activities
(2
)
598
Effect of exchange rate on cash, cash
equivalents, restricted cash, and restricted cash equivalents
(13
)
(6
)
Increase (decrease) in cash, cash
equivalents, restricted cash, and restricted cash
equivalents
(545
)
(1,346
)
Cash, cash equivalents, restricted
cash, and restricted cash equivalents - beginning of period
5,390
7,033
Cash, cash equivalents, restricted
cash, and restricted cash equivalents - end of period
$
4,845
$
5,687
Segment Operating Analysis
(unaudited)
Quarter ended
March 31
2024
2023
(in ‘000s metric tons)
Processed volumes (by
commodity)
Oilseeds
9,387
8,627
Corn
4,407
4,394
Total processed volumes
13,794
13,021
Quarter ended
March 31
2024
2023
(in millions)
Revenues
Ag Services and Oilseeds
$
17,219
$
18,579
Carbohydrate Solutions
2,683
3,537
Nutrition
1,836
1,853
Other Business
109
103
Total revenues
$
21,847
$
24,072
Adjusted Earnings Per Share
A non-GAAP financial measure
(unaudited)
Quarter ended March 31
2024
2023
In millions
Per share
In millions
Per share
Net earnings and fully diluted
EPS
$
729
$
1.42
$
1,170
$
2.12
Adjustments:
Loss (gain) on sales of assets and
businesses (a)
—
—
(1
)
—
Impairment and restructuring charges
(b)
18
0.03
5
0.01
Gain on debt conversion option (c)
—
—
(5
)
(0.01
)
Tax adjustment (d)
3
0.01
(18
)
(0.03
)
Sub-total adjustments
21
0.04
(19
)
(0.03
)
Adjusted net earnings and adjusted
EPS
$
750
$
1.46
$
1,151
$
2.09
(a)
Prior-year quarter gain of $1 million
pretax ($1 million after tax) was related to the sale of certain
assets, tax effected using the applicable tax rate.
(b)
Current quarter and prior-year quarter
charges of $18 million pretax ($18 million after tax) and $7
million pretax ($5 million after tax), respectively, were related
to the impairment of certain assets and restructuring, tax effected
using the applicable tax rates.
(c)
Prior-year quarter gain on debt conversion
of $5 million pretax ($5 million after tax) was 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.
(d)
Tax expense (benefit) adjustment due to
certain discrete items totaling $3 million in the current quarter
and ($18 million) in the prior-year quarter.
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
Jun. 30, 2023
Sep. 30, 2023
Dec. 31, 2023
Mar. 31, 2024
Mar. 31, 2024
Net earnings attributable to ADM
$
927
$
821
$
565
$
729
$
3,042
Adjustments:
Interest expense
124
97
109
115
445
Other adjustments
130
76
167
21
394
Total adjustments
254
173
276
136
839
Tax on adjustments
(52
)
(40
)
(38
)
(27
)
(157
)
Net adjustments
202
133
238
109
682
Total Adjusted ROIC Earnings
$
1,129
$
954
$
803
$
838
$
3,724
Adjusted Invested Capital (in
millions)
Quarter Ended
Trailing Four
Jun. 30, 2023
Sep. 30, 2023
Dec. 31, 2023
Mar. 31, 2024
Quarter Average
Equity (1)
$
24,939
$
25,228
$
24,132
$
23,219
$
24,380
+ Interest-bearing liabilities (2)
8,675
8,346
8,370
9,995
8,847
Other adjustments
108
59
155
21
86
Total Adjusted Invested Capital
$
33,722
$
33,633
$
32,657
$
33,235
$
33,313
Adjusted Return on Invested
Capital
11.2
%
(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 on borrowings, 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 Interest,
Taxes, and Depreciation and Amortization (EBITDA)
A non-GAAP financial measure
(unaudited)
The tables below provide a reconciliation
of net earnings to adjusted EBITDA and adjusted EBITDA by segment
for the trailing four quarters ended March 31, 2024.
Four Quarters
Quarter Ended
Ended
Jun. 30, 2023
Sep. 30, 2023
Dec. 31, 2023
Mar. 31, 2024
Mar. 31, 2024
(in millions)
Net earnings
$
927
$
821
$
565
$
729
$
3,042
Net earnings (losses) attributable to
noncontrolling interests
1
3
(23
)
(10
)
(29
)
Income tax expense
204
207
192
166
769
Interest expense
124
97
109
115
445
Depreciation and amortization
262
261
277
280
1,080
EBITDA
1,518
1,389
1,120
1,280
5,307
(Gain) loss on sales of assets and
businesses
(11
)
2
(7
)
—
(16
)
Impairment and restructuring charges and
settlement contingencies
117
71
172
18
378
Railroad maintenance expense
2
26
39
—
67
Expenses related to acquisitions
3
3
1
—
7
Adjusted EBITDA
$
1,629
$
1,491
$
1,325
$
1,298
$
5,743
Four Quarters
Quarter Ended
Ended
Jun. 30, 2023
Sep. 30, 2023
Dec. 31, 2023
Mar. 31, 2024
Mar. 31, 2024
(in millions)
Ag Services and Oilseeds
$
1,143
$
937
$
1,053
$
959
$
4,092
Carbohydrate Solutions
397
546
387
325
1,655
Nutrition
237
197
58
158
650
Other Business
84
44
143
119
390
Corporate
(232
)
(233
)
(316
)
(263
)
(1,044
)
Adjusted EBITDA
$
1,629
$
1,491
$
1,325
$
1,298
$
5,743
Adjusted EBITDA is defined as earnings
before interest, taxes, 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 income tax expense, interest expense on borrowings, and
depreciation and amortization to net earnings. 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 net earnings,
the most directly comparable GAAP financial measure.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240430649673/en/
Media Contact Brett Lutz media@adm.com 312-634-8484
Investor Relations Megan Britt Megan.Britt@adm.com
872-257-8378
Archer Daniels Midland (NYSE:ADM)
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