0000007084falsetrue00000070842024-07-302024-07-300000007084us-gaap:CommonStockMember2024-07-302024-07-300000007084us-gaap:DebtSecuritiesMember2024-07-302024-07-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C.  20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)       July 30, 2024 

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ARCHER-DANIELS-MIDLAND COMPANY
(Exact name of registrant as specified in its charter)

Delaware1-4441-0129150
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
77 West Wacker Drive, Suite 4600 
Chicago,Illinois 60601
(Address of principal executive offices) (Zip Code)
   
Registrant’s telephone number, including area code: (312) 634-8100

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, no par valueADMNYSE
1.000% Notes due 2025NYSE
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§230.12b-2 of this chapter).

Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐




Item 2.02Results of Operations and Financial Condition.

On July 30, 2024, Archer-Daniels-Midland Company (ADM) issued a press release announcing second quarter results. A copy of such press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ADM is making reference to non-GAAP financial measures in both the press release and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.

Item 9.01Financial Statements and Exhibits.

(d) ExhibitsThe following exhibits are furnished or filed, as applicable, herewith:


101    Interactive Data File

104    Cover Page Interactive Data File (formatted as Inline XBRL and incorporated by reference to Exhibit 101)





SIGNATURES

 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


ARCHER-DANIELS-MIDLAND COMPANY

Date:July 30, 2024By/s/ R. B. Jones
R. B. Jones
Senior Vice President, General Counsel, and Secretary



EXHIBIT INDEX



Exhibit    Description


101    Interactive Data File

104    Cover Page Interactive Data File (formatted as Inline XBRL and incorporated by reference to Exhibit 101)


Exhibit 99.1
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ADM Reports Second Quarter 2024 Results, Affirms Full-Year EPS Guidance

Reported EPS of $0.98, Adjusted EPS1 of $1.03


CHICAGO, July 30, 2024—ADM (NYSE: ADM) today reported financial results for the quarter ended June 30, 2024.


Second Quarter 2024 Highlights
•Net earnings of $486 million, adjusted net earnings1 of $508 million
•Earnings before taxes of $596 million, segment operating profit1 of $1,014 million, adjusted segment operating profit1 of $1,021 million
•Trailing four-quarter average return on invested capital (ROIC) of 8.9%, trailing four-quarter average adjusted return on invested capital (ROIC)1 of 9.7%

“ADM delivered solid results in the quarter, in spite of challenging market conditions, and we are pleased with the progress we are making against our 2024 priorities and strategic initiatives,” said Chair of the Board and CEO Juan Luciano.

“In Ag Services & Oilseeds, while large South American crops and shifts in farmer selling behaviors impacted results in the second quarter, we expect improved margin opportunities through the remainder of the year. In Carb Solutions, the team delivered solid results driven by favorable Starches & Sweeteners and ethanol margin environments, and we expect continued strong performance. And our actions to recover profitability in the Nutrition segment delivered sequential improvement in the quarter and set us up for continued increases moving forward. With solid performance and continued strong cash flow, we have returned significant cash to shareholders through our repurchase efforts through the first two quarters.

“In the second half of the year, improvements in both crush and ethanol, our efforts in operational excellence, the focus on our key priorities, and our team’s agility give us confidence in our full-year expectations, despite uncertainties in the external environment.”

Second Quarter and First Half 2024 Results

2Q 2024 Results Overview
($ in millions except per share amounts)
Earnings Before TaxesEPS (as reported)
GAAP$596$0.98
vs. 2Q 2023(47)%(42)%
Segment Operating Profit1
Adjusted Segment Operating Profit1
Adjusted EPS1
NON-GAAP$1,014$1,021$1.03
vs 2Q 2023(34)%(37)%(46)%








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1H 2024 Results Review
($ in millions except per share amounts)
Earnings Before TaxesEPS (as reported)
GAAP$1,481$2.41
vs. 1H 2023(41)%(37)%
Segment Operating Profit1
Adjusted Segment Operating Profit1
Adjusted EPS1
NON-GAAP$2,325$2,338$2.49
vs 1H 2023(28)%(30)%(37)%
1 Non-GAAP financial measures; see pages 6, 8, 13, and 14 for explanations and reconciliations.    

Summary of Second Quarter and First Half 2024

For the second quarter ended June 30, 2024, earnings before taxes were $596 million and earnings per share on a GAAP basis were $0.98. Segment operating profit was $1,014 million and included charges of $7 million, or approximately $0.01 per share, related to impairments.

Earnings before taxes were $596 million for the second quarter, down (47)% due to lower pricing and execution margins as well as higher corporate unallocated costs. Adjusted segment operating profit was $1,021 million for the second quarter, a 37% decrease versus the prior year period. Adjusted earnings per share were $1.03. Lower pricing and execution margins led to a decline of $1.03 per share versus the prior year period, largely reflecting the impact of lower crush and origination margins. Volume improvement represented a $0.19 per share increase versus the prior year period, primarily reflecting higher volumes in AS&O and Carbohydrate Solutions. Higher costs of $0.07 per share were primarily driven by $0.06 per share of unplanned downtime at Decatur East. Share repurchases contributed $0.10 per share of benefit in the quarter compared to the prior year period. During the quarter, there was approximately a $0.02 per share negative impact from mark-to-market timing in AS&O.

Earnings before taxes were $1,481 million for the first half, down (41)% due to lower pricing and execution margins as well as higher corporate unallocated costs. Adjusted segment operating profit was $2,338 million for the first half of 2024, a 30% decrease versus the prior year period. Adjusted earnings per share were $2.49. Lower pricing and execution margins led to a decline of $2.02 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 $0.40 per share. Improved input and manufacturing costs, primarily related to lower energy costs, led to an increase of $0.08 per share versus the prior year period, partially offset by a $0.10 negative impact from unplanned downtime at Decatur East. Volume improvement represented a $0.37 per share increase versus the prior year period, primarily reflecting higher processed volumes in AS&O. Higher equity earnings led to a $0.06 per share increase in the first half of 2024 versus the prior year period. Corporate and Other accounted for a $0.18 per share decrease, largely attributed to higher IT costs and legal fees. Share repurchases contributed $0.21 per share of benefit compared to the prior year period.

2Q 2024 Segment Overview
($ in millions, except where noted)2Q 2024
2Q 20232
% Change
Adjusted Segment Operating Profit1
$1,021$1,628(37)%
Segment Operating Profit:
Ag Services & Oilseeds4591,054(56)%
Carbohydrate Solutions35731912%
Nutrition109169(36)%
Other968612%





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1H 2024 Segment Overview
($ in millions, except where noted)1H 2024
1H 20232
% Change
Adjusted Segment Operating Profit1
$2,338$3,353(30)%
Segment Operating Profit:
Ag Services & Oilseeds1,3232,265(42)%
Carbohydrate Solutions6055981%
Nutrition193307(37)%
Other21718319%
1 Non-GAAP financial measure; see pages 6 and 8 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 June 30, 2024.

Ag Services and Oilseeds Summary
AS&O segment operating profit was $459 million during the second quarter of 2024, down 56% compared to the elevated prior year levels. The Ag Services subsegment operating profit was lower versus the prior year quarter. In South America Origination, slower farmer selling due to a smaller crop in Mato Grosso, and higher logistics costs related to industry take-or-pay contracts led to much lower margins. North American Origination results were lower, as increased supply from Brazil and Argentina shifted export competitiveness to South American origins, and limited carries and trading opportunities in North America. In the Crushing subsegment, global soybean crush margins decreased due to more balanced supply and demand conditions and lower soybean oil values caused by increased imports of used cooking oil. During the quarter, there were negative mark-to-market timing impacts of approximately $15 million versus approximately $195 million of negative impacts from the same period a year ago, totaling approximately $180 million of positive impacts year-over-year . Refined Products & Other (RPO) results were lower, as refining margins eased from historical levels due to increased pre-treatment capacity and higher imports of used cooking oil. Biodiesel margins were lower versus the prior year due to lower LCFS and RIN values. During the quarter, there were negative mark-to-market timing impacts in RPO of approximately $90 million versus approximately $90 million of positive timing impacts in the prior year, totaling approximately $180 million of negative impacts year-over-year. Equity earnings from Wilmar were $68 million during the quarter.

For the first half of 2024, AS&O delivered $1,323 million in segment operating profit, lower versus the elevated prior year. Ample supplies out of South America created more balanced supply and demand conditions, leading to a lower margin environment in the segment. Improved segment volumes and lower costs partially offset the impact from lower margins. Equity earnings from Wilmar were 10% higher versus the comparable period.

2Q 2024 AS&O Overview
($ in millions, except where noted)2Q 20242Q 2023% Change
 Segment Operating Profit$459$1,054(56)%
Ag Services122380(68)%
Crushing132224(41)%
Refined Products and Other137362(62)%
Wilmar6888(23)%










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1H 2024 AS&O Overview
($ in millions, except where noted)1H 20241H 2023% Change
 Segment Operating Profit$1,323$2,265(42)%
Ag Services354728(51)%
Crushing445651(32)%
Refined Products and Other307689(55)%
Wilmar21719710%
Carbohydrate Solutions Summary
Carbohydrate Solutions segment operating profit was $357 million for the second quarter of 2024, up 12% compared to the prior year period. The Starches & Sweeteners subsegment increased $22 million, as strong starches and sweeteners margins and higher volumes were partially offset by lower margins in the EMEA region, as well as lower domestic ethanol margins. In the Vantage Corn Processing (VCP) subsegment, results improved $16 million compared to the prior year period, as strong demand for exports of ethanol supported higher margins.

For the first half of 2024, Carbohydrate Solutions segment operating profit of $605 million was 1% higher than the prior year, as improved volumes and lower costs were partially offset by lower margins in the EMEA region and lower domestic ethanol margins.



2Q 2024 Carbohydrate Solutions Overview
($ in millions, except where noted)2Q 20242Q 2023% Change
 Segment Operating Profit$357$31912%
Starches and Sweeteners3233017%
Vantage Corn Processors341889%

1H 2024 Carbohydrate Solutions Overview
($ in millions, except where noted)1H 20241H 2023% Change
 Segment Operating Profit$605$5981%
Starches and Sweeteners584614(5)%
Vantage Corn Processors21(16)231%
Nutrition Summary
Nutrition segment operating profit was $109 million for the second quarter of 2024, down 36% compared to the prior year period. Human Nutrition subsegment operating profit was $103 million, approximately $82 million lower versus the prior year period, as impacts related to unplanned downtime at Decatur East, a normalizing texturants market, and higher manufacturing costs negatively impacted margins. In the Animal Nutrition subsegment, operating profit of $6 million was higher year-over-year as cost optimization efforts and lower input costs supported higher margins.

For the first half of 2024, Nutrition segment operating profit of $193 million was 37% lower than the prior year, primarily driven by negative impacts related to unplanned downtime at Decatur East, a normalizing texturants market, and higher costs in Human Nutrition.








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2Q 2024 Nutrition Overview
($ in millions, except where noted)2Q 20242Q 2023% Change
Segment Operating Profit$109$169(36)%
Human Nutrition103185(44)%
Animal Nutrition6(16)138%

1H 2024 Nutrition Overview
($ in millions, except where noted)1H 20241H 2023% Change
Segment Operating Profit$193$307(37)%
Human Nutrition179323(45)%
Animal Nutrition14(16)188%

Other and Corporate Summary
For the second quarter and first half, Other segment operating profit was $96 million and $217 million, up 12% and 19% respectively, compared to the prior year period, supported by higher Captive Insurance results due to lower claim activity. ADM Investor Services results decreased on lower interest income.

In Corporate for the second quarter, unallocated corporate costs increased on higher global technology investments to support digital transformation efforts, increased legal fees, and increased securitization fees. Other Corporate was favorable compared to the prior year period resulting from foreign currency hedges.

In Corporate for the first half, unallocated corporate costs increased versus the prior year on higher global technology investments to support digital transformation efforts, increased legal fees, and increased securitization fees. Other Corporate was unfavorable compared to the prior year period 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 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, July 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
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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 is segment operating profit excluding specified items as more fully described in the reconciliation tables below. 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 earnings 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
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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.

Media Contact
Brett Lutz
media@adm.com
312-634-8484
Investor Relations
Megan Britt
Megan.Britt@adm.com
872-257-8378

Financial Tables Follow

Source: Corporate Release
Source: ADM
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Segment Operating Profit, Adjusted Segment Operating Profit (both non-GAAP financial measures)
and Corporate Results
(unaudited)
Quarter endedSix months ended
June 30June 30
(In millions)20242023Change20242023Change
Earnings before income taxes$596 $1,132 $(536)$1,481 $2,529 $(1,048)
Corporate Unallocated418 393 25 844 715 129 
Segment Operating Profit$1,014 $1,525 $(511)$2,325 $3,244 $(919)
Specified items:
(Gain) loss on sales of assets— (11)11 — (12)12 
Impairment, restructuring charges and contingency provisions7 114 (107)13 121 (108)
Adjusted Segment Operating Profit$1,021 $1,628 $(607)$2,338 $3,353 $(1,015)
Segment Operating Profit:
Ag Services and Oilseeds$459 $1,054 $(595)$1,323 $2,265 $(942)
Ag Services122 380 (258)354 728 (374)
Crushing132 224 (92)445 651 (206)
Refined Products and Other137 362 (225)307 689 (382)
Wilmar68 88 (20)217 197 20 
Carbohydrate Solutions$357 $319 $38 $605 $598 $7 
Starches and Sweeteners323 301 22 584 614 (30)
Vantage Corn Processors34 18 16 21 (16)37 
Nutrition$109 $169 $(60)$193 $307 $(114)
Human Nutrition103 185 (82)179 323 (144)
Animal Nutrition6 (16)22 14 (16)30 
Other Business$96 $86 $10 $217 $183 $34 
Corporate Results$(418)$(393)$(25)$(844)$(715)$(129)
Interest expense - net(128)(125)(3)(238)(228)(10)
Unallocated corporate costs(292)(262)(30)(596)(510)(86)
Other6 (1)7 6 23 (17)
Specified items:
Gain (loss) on debt conversion option— 1 (1)— 6 (6)
Expenses related to acquisitions(4)(3)(1)(4)(3)(1)
Restructuring charges— (3)3 (12)(3)(9)








Segment operating profit, a non-GAAP financial measure, 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 earnings before income taxes, the most directly comparable GAAP financial measure, or any other measure of consolidated operating results under U.S. GAAP.
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Consolidated Statements of Earnings
(unaudited)

Quarter endedSix months ended
June 30June 30
 2024202320242023
 (in millions, except per share amounts)
Revenues$22,248 $25,190 $44,095 $49,262 
Cost of products sold (1)
20,852 23,307 41,040 45,299 
Gross profit1,396 1,883 3,055 3,963 
Selling, general, and administrative expenses (2)
907 841 1,858 1,722 
Asset impairment, exit, and restructuring costs7 60 25 67 
Equity in (earnings) losses of unconsolidated affiliates(152)(151)(364)(325)
Interest and investment income(140)(142)(263)(276)
Interest expense (3)
187 180 353 327 
Other (income) expense - net (4)
(9)(37)(35)(81)
Earnings before income taxes596 1,132 1,481 2,529 
Income tax expense (benefit) (5)
115 204 281 429 
Net earnings including noncontrolling interests481 928 1,200 2,100 
Less:  Net earnings (losses) attributable to noncontrolling interests(5)1 (15)3 
Net earnings attributable to ADM$486 $927 $1,215 $2,097 
Diluted earnings per common share$0.98 $1.70 $2.41 $3.82 
Average diluted shares outstanding493 546 503 549 


(1) Includes a contingency loss provision of $62 million related to import duties in the prior quarter and YTD, respectively.

(2) Includes acquisition-related expenses of $4 million in the current quarter and YTD. Includes acquisition-related expenses of $3 million in the prior quarter and YTD.

(3) Includes (gains) losses related to the mark-to-market adjustment of the conversion option of the exchangeable bond issued in August 2020 of $(1) million and $(6) million in the prior quarter and YTD, respectively.

(4) Includes net (gains) losses related to the sale of certain assets of $(11) million and $(12) million in the prior quarter and YTD, respectively.

(5) Includes the tax expense impact of specified items and tax discrete items totaling $11 million and $14 million in the current quarter and YTD, respectively. Includes the tax expense (benefit) impact of the above specified items and tax discrete items totaling $1 million and $21 million in the prior quarter and YTD, respectively.




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Summary of Financial Condition
(unaudited)
 
June 30,
2024		June 30,
2023
 (in millions)
Net Investment In  
Cash and cash equivalents$764 $1,426 
Operating working capital9,827 10,898 
Property, plant, and equipment10,628 10,127 
Investments in affiliates5,557 5,665 
Goodwill and other intangibles6,970 6,542 
Other non-current assets2,581 2,479 
 $36,327 $37,137 
Financed By  
Short-term debt$2,312 $125 
Long-term debt, including current maturities8,248 8,545 
Deferred liabilities3,306 3,188 
Temporary equity302 304 
Shareholders’ equity22,159 24,975 
 $36,327 $37,137 



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Summary of Cash Flows
(unaudited)
 
Six months ended
June 30
 20242023
 (in millions)
Operating Activities  
Net earnings$1,200 $2,100 
Depreciation and amortization566 521 
Asset impairment charges10 46 
(Gains) losses on sales/revaluation of assets9 (32)
Other - net(93)(145)
Other changes in operating assets and liabilities(524)(1,591)
Total Operating Activities1,168 899 
Investing Activities  
Purchases of property, plant and equipment(690)(614)
Net assets of businesses acquired(936)— 
Proceeds from sale of business/assets16 17 
Investments in affiliates(8)(6)
Other investing activities6 (8)
Total Investing Activities(1,612)(611)
Financing Activities  
Long-term debt borrowings— 500 
Long-term debt payments— (662)
Net borrowings (payments) under lines of credit2,208 (371)
Share repurchases(2,327)(1,001)
Cash dividends(503)(494)
Other(39)(103)
Total Financing Activities(661)(2,131)
Effect of exchange rate on cash, cash equivalents, restricted cash, and restricted cash equivalents(14)(3)
Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents(1,119)(1,846)
Cash, cash equivalents, restricted cash, and restricted cash equivalents - beginning of period5,390 7,033 
Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of period$4,271 $5,187 


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Segment Operating Analysis
(unaudited)


Quarter endedSix months ended
June 30June 30
 2024202320242023
 (in ‘000s metric tons)
Processed volumes (by commodity)    
Oilseeds8,872 8,783 18,259 17,410 
Corn4,482 4,448 8,890 8,842 
Total processed volumes13,354 13,231 27,149 26,252 
Quarter endedSix months ended
 June 30June 30
 2024202320242023
 (in millions)
Revenues    
Ag Services and Oilseeds$17,333 $19,844 $34,552 $38,423 
Carbohydrate Solutions2,894 3,381 5,577 6,918 
Nutrition1,908 1,853 3,744 3,706 
Other Business113 112 222 215 
Total revenues$22,248 $25,190 $44,095 $49,262 























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Adjusted Earnings Per Share
A non-GAAP financial measure
(unaudited)
Quarter ended June 30Six months ended June 30
 2024202320242023
In millionsPer shareIn millionsPer shareIn millionsPer shareIn millionsPer share
Net earnings and fully diluted EPS$486 $0.98 $927 $1.70 $1,215 $2.41 $2,097 $3.82 
Adjustments: 
Loss (gain) on sales of assets and businesses (a)— — (8)(0.02)— — (9)(0.02)
Impairment, restructuring charges and contingency provisions (b)5 0.01 93 0.17 23 0.04 98 0.18 
Expenses related to acquisitions (c)3 0.01 2 — 3 0.01 2 — 
Loss (gain) on debt conversion option (d)— — (1)— — — (6)(0.01)
Tax adjustment (e)14 0.03 21 0.04 17 0.03 3 0.01 
Sub-total adjustments22 0.05 107 0.19 43 0.08 88 0.16 
Adjusted net earnings and adjusted EPS$508 $1.03 $1,034 $1.89 $1,258 $2.49 $2,185 $3.98 

(a)Prior quarter and YTD gain of $11 million and $12 million pretax ($8 million and $9 million after tax), respectively, was related to the sale of certain assets, tax effected using the applicable tax rate.
(b)Current quarter and YTD charges of $7 million and $25 million pretax ($5 million and $23 million after tax), respectively were related to the impairment of certain assets and restructuring, tax effected using the applicable tax rates. Prior quarter and YTD charges of $117 million and $124 million pretax ($93 million and $98 million after tax), respectively, were related to the impairment of certain assets, restructuring, and a contingency loss provision related to import duties, tax effected using the applicable tax rates.
(c)Current quarter and YTD expenses of $4 million ($3 million after tax) were related to certain acquisitions, tax effected using the Company’s U.S. income tax rate. Prior quarter and YTD expenses of $3 million ($2 million after tax) were related to certain acquisitions, tax effected using the Company’s U.S. income tax rate.
(d)Prior quarter and YTD gain on debt conversion option of $1 million and $6 million pretax ($1 million and $6 million after tax), respectively.
(e)Tax expense (benefit) adjustment due to certain discrete items totaling $14 million and $17 million in the current quarter and YTD, respectively. Tax expense (benefit) adjustment due to certain discrete items totaling $21 million and $3 million in the prior quarter and YTD, respectively.


































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.

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Return on Invested Capital and Adjusted Return on Invested Capital
A non-GAAP financial measure
(unaudited)
ROIC Earnings (in millions)
Four Quarters
Quarter EndedEnded
Sep. 30, 2023Dec. 31, 2023Mar. 31, 2024June 30, 2024June 30, 2024
Net earnings attributable to ADM$821 $565 $729 $486 $2,601 
Adjustments:
   Interest expense97 109 115 135 456 
   Tax on interest(23)(26)(27)(32)(108)
Total ROIC Earnings$895 $648 $817 $589 $2,949 
Total ROIC Earnings$895 $648 $817 $589 $2,949 
      Other Adjustments59 155 21 22 257 
Total Adjusted ROIC Earnings$954 $803 $838 $611 $3,206 

Invested Capital (in millions)
Quarter EndedTrailing Four
Sep. 30, 2023Dec. 31, 2023Mar. 31, 2024June 30, 2024Quarter Average
Equity (1)
$25,228 $24,132 $23,219 $22,148 $23,682 
+ Interest-bearing liabilities (2)
8,346 8,370 9,995 10,576 9,322 
Total Invested Capital$33,574 $32,502 $33,214 $32,724 $33,004 
Total Invested Capital$33,574 $32,502 $33,214 $32,724 $33,004 
      Other Adjustments59 155 21 22 64 
Total Adjusted Invested Capital$33,633 $32,657 $33,235 $32,746 $33,068 
Return on Invested Capital8.9 %
Adjusted Return on Invested Capital9.7 %

(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.
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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 for the trailing four quarters ended June 30, 2024.
Four Quarters
Quarter EndedEnded
Sep. 30, 2023Dec. 31, 2023Mar. 31, 2024June 30, 2024June 30, 2024
(in millions)
Net earnings$821 $565 $729 $486 $2,601 
Net earnings (losses) attributable to noncontrolling interests3 (23)(10)(5)(35)
Income tax expense207 192 166 115 680 
Interest expense97 109 115 135 456 
Depreciation and amortization261 277 280 286 1,104 
EBITDA1,389 1,120 1,280 1,017 4,806 
(Gain) loss on sales of assets and businesses2 (7)— — (5)
Impairment and restructuring charges and contingency provisions. 71 172 18 7 268 
Railroad maintenance expense26 39 — 4 69 
Expenses related to acquisitions3 1 — 4 8 
Adjusted EBITDA$1,491 $1,325 $1,298 $1,032 $5,146 
























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.
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v3.24.2
Cover Page Cover Page
Jul. 30, 2024
Class of Stock [Line Items]  
Entity Central Index Key 0000007084
Amendment Flag false
Document Type 8-K
Document Period End Date Jul. 30, 2024
Entity Registrant Name ARCHER-DANIELS-MIDLAND CO
Entity Incorporation, State or Country Code DE
Entity File Number 1-44
Entity Tax Identification Number 41-0129150
Entity Address, Address Line One 77 West Wacker Drive, Suite 4600
Entity Address, City or Town Chicago,
Entity Address, State or Province IL
Entity Address, Postal Zip Code 60601
City Area Code 312
Local Phone Number 634-8100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Common Stock [Member]  
Class of Stock [Line Items]  
Title of 12(b) Security Common Stock, no par value
Trading Symbol ADM
Security Exchange Name NYSE
Debt Securities [Member]  
Class of Stock [Line Items]  
Title of 12(b) Security 1.000% Notes due 2025
No Trading Symbol Flag true
Security Exchange Name NYSE
Archer Daniels Midland (NYSE:ADM)
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