Archer Daniels Midland on Aug. 1 reported net earnings of $276 million for the quarter ended June 30, 2017. Adjusted earnings per share were up 39% over the prior-year quarter.

“Our actions in the first half of the year reflect ADM’s continuous efforts to create shareholder value," said ADM chairman and CEO Juan Luciano. "We are diversifying our capabilities and geographic reach through acquisitions and organic expansions. We are aggressively managing costs and capital, and taking additional portfolio actions; and we are ahead of pace to meet our 2017 target of $225 million in run-rate savings.

“With these collective actions, we expect to deliver solid year-over-year earnings growth and returns in 2017, and we are poised to be an even stronger company in 2018.”

ADM shareholders will receive a cash dividend of 32 cents per share on the company’s common stock payable on Sept. 7, 2017, to shareholders of record on Aug. 17, 2017. This is the 343rd consecutive quarterly payment, a record of 85 years of uninterrupted dividends.

Results of operations 

Other items of note

Segment operating profit of $642 million for the quarter includes charges of $26 million related to asset impairment, restructuring and settlement activities, and a net pretax gain on the sale of assets and businesses of $8 million. Prior-year segment operating profit included asset impairment and restructuring charges of $10 million and a net pretax gain on the sale of assets and businesses of $118 million.

In Corporate results, Minority Interest and Other charges increased from the prior year primarily due to updated portfolio investment valuations in CIP, and Unallocated Costs were up due to continued investments in ADM’s business transformation program and related IT costs, and in research and development. 

The 28% effective tax rate reflects an approximately 1% decrease due primarily to changes in the forecast geographic mix of earnings and the effect of changes in discrete items year over year, partially offset by the expiration of U.S. tax credits including the biodiesel tax credit.

Source: ADM