ADM Reports Preliminary Third Quarter 2024 Results
ADM reported preliminary Q3 2024 results with net earnings of $18 million and adjusted net earnings of $530 million. The company announced a $461 million non-cash charge related to Wilmar equity investment. Earnings per share were $0.04, with adjusted EPS of $1.09. ADM will restate its FY2023 10-K and subsequent 10-Qs due to intersegment sales issues, though these restatements are not expected to materially impact consolidated results. The company lowered its full-year 2024 adjusted EPS guidance to $4.50-$5.00, citing market demand slowdown and operational challenges.
ADM ha riportato i risultati preliminari del terzo trimestre 2024, con un utile netto di 18 milioni di dollari e un utile netto rettificato di 530 milioni di dollari. L'azienda ha annunciato una rettifica non monetaria di 461 milioni di dollari relativa all'investimento in azioni Wilmar. Gli utili per azione sono stati di 0,04 dollari, con un EPS rettificato di 1,09 dollari. ADM ripresenterà il 10-K per l'anno fiscale 2023 e i successivi 10-Q a causa di problemi nelle vendite intersegmentali, sebbene si preveda che queste rettifiche non abbiano un impatto significativo sui risultati consolidati. L'azienda ha abbassato le sue previsioni di EPS rettificato per l'intero anno 2024 a 4,50-5,00 dollari, citando un rallentamento della domanda di mercato e sfide operative.
ADM reportó resultados preliminares para el tercer trimestre de 2024 con ganancias netas de 18 millones de dólares y ganancias netas ajustadas de 530 millones de dólares. La compañía anunció un cargo no monetario de 461 millones de dólares relacionado con la inversión en acciones de Wilmar. Las ganancias por acción fueron de 0,04 dólares, con un EPS ajustado de 1,09 dólares. ADM volverá a presentar su 10-K del año fiscal 2023 y los 10-Q subsecuentes debido a problemas en las ventas intersegmentales, aunque no se espera que estas correcciones afecten materialmente los resultados consolidados. La empresa ha reducido su guía de EPS ajustado para todo el año 2024 a 4,50-5,00 dólares, citando una desaceleración en la demanda del mercado y desafíos operativos.
ADM은 2024년 3분기 예비 실적을 보고했으며 순이익은 1,800만 달러, 조정 순이익은 5억 3,000만 달러입니다. 이 회사는 Wilmar 주식 투자와 관련하여 4억 6,100만 달러의 비현금 비용을 발표했습니다. 주당 순이익은 0.04달러이며, 조정 EPS는 1.09달러입니다. ADM은 부문 간 판매 문제로 인해 2023 회계연도 10-K 및 이후의 10-Q를 수정할 예정이지만 이 수정이 통합 성과에 실질적으로 영향을 미칠 것으로 예상되지는 않습니다. 이 회사는 시장 수요 둔화 및 운영상의 어려움을 이유로 2024년 전체 연도 조정 EPS 가이던스를 4.50-5.00달러로 하향 조정했습니다.
ADM a annoncé ses résultats préliminaires pour le troisième trimestre 2024, avec un bénéfice net de 18 millions de dollars et un bénéfice net ajusté de 530 millions de dollars. L'entreprise a annoncé une charge non monétaire de 461 millions de dollars liée à son investissement en actions Wilmar. Le bénéfice par action était de 0,04 dollar, avec un BPA ajusté de 1,09 dollar. ADM va réviser son 10-K pour l'exercice 2023 et ses 10-Q suivants en raison de problèmes de ventes intersegmentaires, bien que ces révisions ne devraient pas avoir d'impact matériel sur les résultats consolidés. L'entreprise a abaissé ses prévisions pour l'EPS ajusté de l'année 2024 à 4,50-5,00 dollars, en raison d'un ralentissement de la demande sur le marché et de défis opérationnels.
ADM berichtete vorläufige Ergebnisse für das dritte Quartal 2024 mit einem Nettogewinn von 18 Millionen Dollar und einem bereinigten Nettogewinn von 530 Millionen Dollar. Das Unternehmen kündigte eine nicht zahlungswirksame Belastung von 461 Millionen Dollar im Zusammenhang mit der Wilmar-Aktieninvestition an. Der Gewinn pro Aktie betrug 0,04 Dollar, mit einem bereinigten EPS von 1,09 Dollar. ADM wird seinen 10-K für das Geschäftsjahr 2023 und die folgenden 10-Qs aufgrund von Problemen bei den intersegmentalen Verkäufen neu auflegen, obwohl nicht erwartet wird, dass diese Neuausgaben wesentliche Auswirkungen auf die konsolidierten Ergebnisse haben werden. Das Unternehmen hat seine Prognose für das bereinigte EPS für das gesamte Jahr 2024 auf 4,50-5,00 Dollar gesenkt und verwies dabei auf eine verlangsamte Marktnachfrage und betriebliche Herausforderungen.
- Operating cash flows increased to $2.468 billion YTD from $1.891 billion in prior year
- Carbohydrate Solutions segment showed strong performance with $452 million operating profit
- Animal Nutrition operating profit increased 58% compared to prior year quarter
- Net earnings declined significantly to $18 million in Q3 2024
- $461 million non-cash charge related to Wilmar investment impairment
- Ag Services & Oilseeds segment operating profit decreased 43% year-over-year
- Material weakness identified in internal control over financial reporting
- Lowered full-year 2024 adjusted EPS guidance to $4.50-$5.00
- Nutrition segment operating profit declined 19% year-over-year
Insights
A significant earnings miss and financial restatement announcement from ADM raises serious concerns. The
The need to restate financial statements due to intersegment sales issues and identification of material weakness in internal controls is particularly concerning. While management claims these restatements won't materially impact consolidated results, the postponement of earnings call and ongoing SEC dialogue suggests deeper scrutiny of accounting practices.
Operating performance deteriorated across key segments: Ag Services & Oilseeds down
The disclosure of material weakness in internal controls over financial reporting, specifically related to intersegment sales accounting, is a red flag. The need to restate previous filings (FY2023 10-K and subsequent 10-Qs) indicates systemic issues in accounting procedures and controls. While remediation efforts are underway, including enhanced pricing controls and staff training, the discovery of additional misclassified transactions during testing suggests the problems may be more extensive than initially thought.
The postponement of the earnings call and ongoing SEC dialogue adds another layer of complexity. Though management asserts the restatements won't materially impact consolidated results, the focus should be on the underlying control environment that allowed these errors to persist.
Will Restate Previously Filed Fiscal Year 2023 Form 10-K and Subsequent Forms 10-Q
Postpones Third Quarter Conference Call
Preliminary* Third Quarter 2024 Highlights
-
Net earnings expected to be reported at
$18 million $530 million -
See below for impact of non-cash charge against GAAP earnings for the third quarter of
$461 million
-
See below for impact of non-cash charge against GAAP earnings for the third quarter of
-
Earnings per share1 expected to be
$0.04 $1.09 -
Trailing four-quarter average return on invested capital (ROIC) of
6.6% , trailing four-quarter average adjusted return on invested capital (ROIC)1 of8.8% - Restatement of previously filed fiscal year 2023 Form 10-K and subsequent Forms 10-Q not expected to materially impact results on a consolidated basis
In regards to cash flows, our year to date cash flows from operating activities are expected to be
“Our third quarter operating results were mixed in a challenging quarter for the business,” said Chair of the Board and CEO Juan Luciano.
“While Carbohydrate Solutions achieved strong results, our Ag Services and Oilseeds and Nutrition businesses delivered results below expectations, impacted by softer than expected market conditions and the pace of our planned improvement efforts. We are taking the necessary actions to improve performance and drive continued value creation.
The integrity of our internal controls and financial reporting is very important. We strive for accuracy and transparency in all aspects of our business. While we have made progress we are committed to continued strengthening of our internal financial controls.”
_____________________________ |
*Results presented in this release are preliminary and unaudited estimates based on information currently available to the Company. Such results could differ from the final amounts that the Company ultimately reports in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024. The Company assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended September 30, 2024 |
| 1 Non-GAAP financial measures; see pages 6 and 8-12 for explanations and reconciliations. |
| 2 All references in this document to earnings per share (EPS) and adjusted earnings per share reflect EPS on a diluted basis. |
Wilmar
GAAP earnings include a reduction in the carrying value of the Wilmar equity investment to reflect the Singapore Exchange trading price as of the balance sheet date. The reduction resulted from a determination that declines in the valuation amount for our investment are impaired on an “other than temporary” basis as of the end of the quarter. This has resulted in a non-cash charge against GAAP earnings for the third quarter of 2024 of
Restatement
Following ongoing dialogue with the staff of the United States Securities and Exchange Commission, the Company will amend the Company’s fiscal year 2023 Form 10-K (the “FY2023 Form 10-K”) and Form 10-Q for the first and second quarters of 2024 (collectively, the “Q1 and Q2 2024 Form 10-Qs”) to restate the segment information disclosure (Note 17 included in the FY 2023 Form 10-K and Note 13 included in the Q1 and Q2 2024 Form 10-Qs) included in those filings. These restatements are not expected to result in any material impact on ADM’s Consolidated Statements of Earnings, Consolidated Statements of Comprehensive Income (Loss), Consolidated Balance Sheets, Consolidated Statements of Cash Flow or Consolidated Statements of Shareholders’ Equity as of and for the periods presented. The restated filings will include corrections for newly identified errors related to intersegment sales (described below), will reflect the previously-corrected errors, and will provide disclosures applicable to restated segment information.
As previously disclosed in Note 17, Segment and Geographic Information, to ADM’s consolidated financial statements included in the FY2023 Form 10-K, ADM identified and corrected certain intersegment sales amounts that either (i) were not in accordance with prior disclosures about presenting such sales at amounts approximating market or (ii) included intrasegment sales (resulting from sales within the segment) and should have included exclusively intersegment sales (resulting from sales from one segment to the other). In connection with the error corrections, ADM identified a material weakness in its internal control over financial reporting related to its accounting practices and procedures for intersegment sales. The Company put in place a plan to remediate this material weakness, as disclosed in the FY2023 Form 10-K and Q1 and Q2 2024 Form 10-Qs.
In addition, in the course of testing new controls implemented as part of the Company’s material weakness remediation plan in the third quarter of 2024, ADM identified additional misclassified intersegment transactions. These newly identified errors concern additional intersegment sales for each of its Ag Services and Oilseeds, Carbohydrate Solutions and Nutrition segments that included certain intrasegment sales and should have included exclusively intersegment sales. The Company also identified some intersegment transactions between Ag Services and Oilseeds and Carbohydrate Solutions that were not accounted for consistently in accordance with revenue recognition and segment reporting standards and should not have been reported as intersegment sales.
ADM is working to complete these restatements as soon as reasonably practicable. The determination to restate previously issued financial statements was made by the Company's Board of Directors, in consultation with management and the Company's independent registered public accounting firm. ADM is evaluating its remediation measures and is continuing to focus on implementing enhancements to its internal controls to remediate its previously identified material weakness, taking action to enhance its integrity and accuracy within internal controls and financial reporting related to intersegment sales. Among other things, the design and documentation of the execution of pricing and measurement and reporting controls for segment disclosure purposes and projected financial information used in impairment analyses have been enhanced, and testing of these controls will continue throughout the balance of the year. Further, training for relevant personnel on the measurement of intersegment sales and application of relevant accounting guidance to intersegment sales has been provided and remains ongoing.
Preliminary Summary of Third Quarter and Year-to-Date 2024
The following discussion summarizes preliminary earnings results for our three reportable segments – Ag Services and Oilseeds, Carbohydrate Solutions and Nutrition – and other and corporate earnings information.
Ag Services and Oilseeds (AS&O) Segment Summary (preliminary unaudited)
AS&O segment operating profit was
The Ag Services subsegment operating profit was (53)% lower versus the prior year quarter, primarily due to lower results in South America Origination, as slower farmer selling and higher logistics costs related to industry take-or-pay contracts led to lower margins. The prior year quarter also included
The Crushing subsegment operating profit was (25)% lower versus the prior year quarter. Global soybean crush margins were higher, supported by strong margins in EMEA. However, higher canola seed prices due to less supply in
The Refined Products & Other (RPO) subsegment operating profit was (63)% lower versus the prior year quarter, primarily driven by lower results in
Equity earnings from our Wilmar equity investment were
Year-to-date in 2024, the AS&O segment delivered
Carbohydrate Solutions Segment Summary (preliminary unaudited)
Carbohydrate Solutions segment operating profit was
The Starches & Sweeteners subsegment increased
In the Vantage Corn Processing (VCP) subsegment, operating loss of
Year-to-date in 2024, Carbohydrate Solutions segment operating profit of
Nutrition Segment Summary (preliminary unaudited)
Nutrition segment operating profit was
Human Nutrition subsegment operating profit was
In the Animal Nutrition subsegment, operating profit of
Year-to-date in 2024, Nutrition segment operating profit of
Other and Corporate Summary (preliminary unaudited)
For the third quarter, Other business operating loss was
Year-to-date in 2024, Other business operating profit was
In Corporate for the third quarter, unallocated corporate costs increased versus the prior year on
In Corporate for year-to-date 2024, unallocated corporate costs increased versus the prior year on higher global technology investments to support digital transformation efforts,
Outlook
The Company is lowering its previously provided EPS guidance for the full year. ADM now expects adjusted earnings per share2 in the range of
_____________________________ |
3 Forecasted GAAP Earnings Reconciliation: ADM is not presenting forecasted GAAP earnings per diluted share or a quantitative reconciliation to forecasted adjusted earnings per 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. |
Postponed Third Quarter Conference Call
ADM has decided to postpone the webcast originally scheduled for November 5, 2024, at 9 a.m. Central Time as it works diligently to finalize its financial statements. The Company expects to reschedule the webcast to discuss the third quarter financial results and provide a company update once it has filed the amended FY2023 Form 10-K and the Q1 and Q2 2024 Form 10-Qs with restated financials and the Form 10-Q for the third quarter of 2024.
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 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
Adjusted net earnings and Adjusted earnings per share (EPS). Adjusted net earnings reflects ADM’s GAAP 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 GAAP EPS 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 GAAP net earnings and GAAP EPS, 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 (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 redeemable and non-redeemable noncontrolling interests) and interest-bearing liabilities (which totals invested capital), adjusted for 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.
Cash Flows from Operations Before Working Capital. Cash flows from operations before working capital is defined as net cash flow provided by operating activities excluding the changes in operating assets and liabilities as presented in the Company’s Consolidated Statement of Cash Flows. Management believes that cash flow from operations before working capital is a useful measure of the Company’s cash generation. Cash flow from operations before working capital is a non-GAAP financial measure and is not intended to replace or be an alternative to net cash provided by operating activities, the most directly comparable GAAP financial measure.
Reconciliation Tables Follow
Source: Corporate Release
Source: ADM
Adjusted Net Earnings and Adjusted EPS (Preliminary Unaudited) |
|||||||||||||||||||||
Non-GAAP financial measures |
|||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||
|
Quarter ended September 30 |
|
Nine months ended September 30 |
||||||||||||||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||||||||||||||
|
In millions |
Per share |
In millions |
Per share |
|
In millions |
Per share |
In millions |
Per share |
||||||||||||
Net earnings and fully diluted EPS |
$ |
18 |
|
$ |
0.04 |
$ |
821 |
$ |
1.52 |
|
$ |
1,233 |
|
$ |
2.48 |
$ |
2,918 |
|
$ |
5.35 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||||
Loss (gain) on sales of assets and businesses (a) |
|
(1 |
) |
|
— |
|
2 |
|
— |
|
|
(1 |
) |
|
— |
|
(7 |
) |
|
(0.02 |
) |
Impairment, restructuring charges and contingency provisions (b) |
|
500 |
|
|
1.03 |
|
54 |
|
0.10 |
|
|
523 |
|
|
1.06 |
|
152 |
|
|
0.28 |
|
Expenses related to acquisitions (c) |
|
— |
|
|
— |
|
3 |
|
0.01 |
|
|
3 |
|
|
0.01 |
|
5 |
|
|
0.01 |
|
Loss (gain) on debt conversion option (d) |
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
(6 |
) |
|
(0.01 |
) |
Tax adjustment (e) |
|
13 |
|
|
0.02 |
|
— |
|
— |
|
|
30 |
|
|
0.06 |
|
3 |
|
|
0.01 |
|
Sub-total adjustments |
|
512 |
|
|
1.05 |
|
59 |
|
0.11 |
|
|
555 |
|
|
1.13 |
|
147 |
|
|
0.27 |
|
Adjusted net earnings and adjusted EPS |
$ |
530 |
|
$ |
1.09 |
$ |
880 |
$ |
1.63 |
|
$ |
1,788 |
|
$ |
3.61 |
$ |
3,065 |
|
$ |
5.62 |
|
(a) |
|
Current quarter and YTD gain each of |
(b) |
|
Current quarter and YTD charges of |
(c) |
|
Current YTD expenses of |
(d) |
|
Prior YTD gain on debt conversion option of |
(e) |
|
Tax expense (benefit) adjustment due to certain discrete items totaling |
Adjusted net earnings reflects ADM’s GAAP 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 GAAP EPS 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 GAAP EPS, 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 (Preliminary Unaudited) |
|||||||||||||||||||
A non-GAAP financial measure |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
ROIC Earnings (in millions) |
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
Four Quarters |
|||||||||||
|
Quarter Ended |
|
Ended |
||||||||||||||||
|
Dec. 31, 2023 |
|
Mar. 31, 2024 |
|
Jun. 30, 2024 |
|
Sep. 30, 2024 |
|
Sep. 30, 2024 |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings attributable to ADM |
$ |
565 |
|
|
$ |
729 |
|
|
$ |
486 |
|
|
$ |
18 |
|
|
$ |
1,798 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense |
|
109 |
|
|
|
115 |
|
|
|
135 |
|
|
|
124 |
|
|
|
483 |
|
Tax on interest |
|
(26 |
) |
|
|
(27 |
) |
|
|
(32 |
) |
|
|
(30 |
) |
|
|
(115 |
) |
Total ROIC Earnings |
$ |
648 |
|
|
$ |
817 |
|
|
$ |
589 |
|
|
$ |
112 |
|
|
$ |
2,166 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total ROIC Earnings |
$ |
648 |
|
|
$ |
817 |
|
|
$ |
589 |
|
|
$ |
112 |
|
|
$ |
2,166 |
|
Other Adjustments |
|
155 |
|
|
|
21 |
|
|
|
22 |
|
|
|
512 |
|
|
|
710 |
|
Total Adjusted ROIC Earnings |
$ |
803 |
|
|
$ |
838 |
|
|
$ |
611 |
|
|
$ |
624 |
|
|
$ |
2,876 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Invested Capital (in millions) |
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
|
Quarter Ended |
|
Trailing Four |
||||||||||||
|
Dec. 31, 2023 |
|
Mar. 31, 2024 |
|
Jun. 30, 2024 |
|
Sep. 30, 2024 |
|
Quarter Average |
||||||
|
|
|
|
|
|
|
|
|
|
||||||
Equity (1) |
$ |
24,132 |
|
$ |
23,219 |
|
$ |
22,148 |
|
$ |
21,974 |
|
$ |
22,868 |
|
+ Interest-bearing liabilities (2) |
|
8,370 |
|
|
9,995 |
|
|
10,576 |
|
|
10,051 |
|
|
9,748 |
|
Total Invested Capital |
$ |
32,502 |
|
$ |
33,214 |
|
$ |
32,724 |
|
$ |
32,025 |
|
$ |
32,616 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Invested Capital |
$ |
32,502 |
|
$ |
33,214 |
|
$ |
32,724 |
|
$ |
32,025 |
|
$ |
32,616 |
|
Other Adjustments |
|
155 |
|
|
21 |
|
|
22 |
|
|
512 |
|
|
178 |
|
Total Adjusted Invested Capital |
$ |
32,657 |
|
$ |
33,235 |
|
$ |
32,746 |
|
$ |
32,537 |
|
$ |
32,794 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Return on Invested Capital |
|
|
|
|
|
|
|
|
6.6 |
% |
|||||
Adjusted Return on Invested Capital |
|
|
|
|
|
|
|
|
8.8 |
% |
|||||
(1) Excludes noncontrolling interests |
|||||||||||||||
(2) Includes short-term debt, current maturities of long-term debt, finance lease obligations, and long-term debt |
|||||||||||||||
ROIC is ROIC earnings divided by invested capital. ROIC earnings is ADM’s net earnings adjusted for the after-tax effects of interest expense on borrowings. Invested capital is the sum of ADM’s equity (excluding noncontrolling interests) and interest-bearing liabilities. |
|||||||||||||||
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. Adjusted ROIC on a trailing four quarter average basis is equal to the average trailing four quarters of adjusted ROIC earnings divided by the average trailing four quarters of adjusted invested capital. 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) (Preliminary Unaudited) |
|||||||||||||||||||
A non-GAAP financial measure |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
The tables below provide a reconciliation of net earnings to adjusted EBITDA for the trailing four quarters ended September 30, 2024. |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
Four Quarters |
||||||||||
|
Quarter Ended |
|
Ended |
||||||||||||||||
|
Dec. 31, 2023 |
|
Mar. 31, 2024 |
|
Jun. 30, 2024 |
|
Sep. 30, 2024 |
|
Sep. 30, 2024 |
||||||||||
|
|
|
|
|
(in millions) |
|
|
|
|
||||||||||
Net earnings |
$ |
565 |
|
|
$ |
729 |
|
|
$ |
486 |
|
|
$ |
18 |
|
|
$ |
1,798 |
|
Net earnings (losses) attributable to noncontrolling interests |
|
(23 |
) |
|
|
(10 |
) |
|
|
(5 |
) |
|
|
— |
|
|
|
(38 |
) |
Income tax expense |
|
192 |
|
|
|
166 |
|
|
|
115 |
|
|
|
90 |
|
|
|
563 |
|
Interest expense |
|
109 |
|
|
|
115 |
|
|
|
135 |
|
|
|
124 |
|
|
|
483 |
|
Depreciation and amortization |
|
277 |
|
|
|
280 |
|
|
|
286 |
|
|
|
288 |
|
|
|
1,131 |
|
EBITDA |
|
1,120 |
|
|
|
1,280 |
|
|
|
1,017 |
|
|
|
520 |
|
|
|
3,937 |
|
(Gain) loss on sales of assets and businesses |
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(8 |
) |
Impairment and restructuring charges and contingency provisions |
|
172 |
|
|
|
18 |
|
|
|
7 |
|
|
|
504 |
|
|
|
701 |
|
Railroad maintenance expense |
|
39 |
|
|
|
— |
|
|
|
4 |
|
|
|
28 |
|
|
|
71 |
|
Expenses related to acquisitions |
|
1 |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
|
5 |
|
Adjusted EBITDA |
$ |
1,325 |
|
|
$ |
1,298 |
|
|
$ |
1,032 |
|
|
$ |
1,051 |
|
|
$ |
4,706 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA, 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 EBITDA and adjusted EBITDA are useful measures of the Company’s performance because they provide investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. EBITDA and adjusted EBITDA are non-GAAP financial measure and are not intended to replace or be an alternative to net earnings, the most directly comparable GAAP financial measure. |
|||||||||||||||||||
Cash Flows from Operations Before Working Capital (Preliminary Unaudited) |
||||||||
A non-GAAP financial measure |
||||||||
(unaudited) |
||||||||
|
|
Nine months ended |
||||||
|
|
September 30 |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(in millions) |
||||||
Net Cash Provided by Operating Activities |
|
$ |
2,468 |
|
|
$ |
1,891 |
|
Net Cash (Used) by Investing Activities |
|
|
(2,002 |
) |
|
|
(1,061 |
) |
Net Cash (Used) by Financing Activities |
|
|
(1,465 |
) |
|
|
(2,800 |
) |
|
|
|
|
|
||||
Net Cash Provided by Operating Activities |
|
|
2,468 |
|
|
|
1,891 |
|
Less: Changes in operating assets and liabilities (1) |
|
|
127 |
|
|
|
(1,913 |
) |
Cash Flows from Operations Before Working Capital |
|
$ |
2,341 |
|
|
$ |
3,804 |
|
(1) Operating assets and liabilities include trade receivables, inventories, other current assets, trade payables, accrued expenses, segregated investments and brokerage payables. |
||||||||
Cash Flow from Operations Before Working Capital. Cash flows from operations before working capital is defined as net cash provided by operating activities excluding the changes in operating assets and liabilities as presented in the Company’s Consolidated Statement of Cash Flows. Management believes that cash flow from operations before working capital is a useful measure of the Company’s cash generation. Cash flow from operations before working capital is a non-GAAP financial measure and is not intended to replace or be an alternative to net cash provided by operating activities, the most directly comparable GAAP financial measure. |
||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104262002/en/
Media Contact
Brett Lutz
media@adm.com
312-634-8484
Investor Relations
Megan Britt
Megan.Britt@adm.com
872-257-8378
Source: ADM
FAQ
What was ADM's Q3 2024 earnings per share?
Why is ADM restating its financial statements?
What is ADM's new earnings guidance for 2024?
How much was ADM's Wilmar investment impairment charge in Q3 2024?
