- Net earnings and adjusted earnings of about $1.0 billion
- Trailing four-quarter average adjusted ROIC of 13%
ADM (NYSE: ADM) today reported financial results for the quarter
ended September 30, 2022.
“I’m proud of our team for delivering yet another quarter of
strong results by supporting the global food system and providing
needed nutrition to billions,” said Chairman and CEO Juan Luciano.
“Global demand remains robust, and our adjusted EPS of $1.86 is a
reflection of our team’s expertise in managing dynamic market
conditions, as well as the unique benefits of our integrated global
value chain and our product portfolio.
“Today’s ADM is a resilient company, with a broad global
footprint and an array of innovative capabilities that are driving
performance for customers, consumers and shareholders. And with
strong cash flows, we’re advancing productivity initiatives to
enhance cost efficiencies and returns; driving innovation efforts
to build new capabilities and growth engines across all of our
businesses; and continuing to return capital to our shareholders.
We’re well positioned to end 2022 strong, and carry that momentum
into 2023.”
Third Quarter 2022 Highlights
(Amounts in millions except per share
amounts)
2022
2021
Earnings per share (as
reported)
$
1.83
$
0.93
Adjusted earnings per share1
$
1.86
$
0.97
Segment operating profit
$
1,559
$
1,000
Adjusted segment operating profit
(loss)1
$
1,579
$
1,002
Ag Services and Oilseeds
1,075
618
Carbohydrate Solutions
309
213
Nutrition
177
176
Other Business
18
(5
)
- Q3 2022 EPS as reported of $1.83 includes a $0.07 per share
charge related primarily to impairments and restructuring; a $0.04
per share gain related to the sale of certain assets; a $0.01 per
share gain related to the mark-to-market adjustment on the Wilmar
exchangeable bond; and a $0.01 per share tax expense related to
certain discrete items. Adjusted EPS, which excludes these items,
was $1.86.1
1 Non-GAAP financial measures; see pages 3, 5, 10, 11 and 12 for
explanations and reconciliations, including after-tax amounts.
Quarterly Results of Operations
Ag Services & Oilseeds
delivered substantially higher year-over-year results.
- Ag Services results were significantly higher than the third
quarter of 2021. The short crops in South America supported U.S.
exports, driving improved volumes and margins in North American
origination, which had significant negative impacts from Hurricane
Ida in the prior year. Better margins in global ocean freight,
driven by good execution amid dynamic global trade flows, powered
better results in Global Trade. South American origination saw
improved volumes and margins driven by increased farmer selling in
addition to higher volumes through our export facilities.
- Crushing results were significantly higher, with margins driven
by resilient global demand for both meal and oil. Strong rapeseed
margins in EMEA, driven by robust oil demand and continued market
dislocations, along with positive impacts from an insurance
settlement, helped drive improved results. North American soy crush
margins continued to benefit from renewable diesel demand. Also,
net positive timing effects in the quarter were about $175 million,
as compared to the approximately $70 million in the prior-year
quarter. Positive results were partially offset by lower crush
volumes, including impacts from idled facilities in Ukraine and
Paraguay.
- Refined Products and Other results were higher year over year
in a strong margin environment for both refined oils and biodiesel.
Robust performance in global refined oils was driven by healthy
demand and elevated refined oil margins amid supply chain
disruptions.
- Equity earnings from Wilmar were much higher versus the third
quarter of 2021.
Carbohydrate Solutions
results were significantly higher than the prior-year
quarter’s.
- The Starches and Sweeteners subsegment, which includes ethanol
production from our wet mills, delivered much improved
year-over-year results amid steady global demand for sweeteners and
starches. Corn co-products — including continued robust demand for
corn oil — as well as effective risk management drove higher
execution margins in North America. Wheat milling had a strong
performance, delivering improved volumes and margins to meet
healthy demand for flour. In EMEA, the business delivered solid
volumes and margins and managed through a dynamic energy
environment to drive stronger results.
- Vantage Corn Processors results were substantially lower.
Ethanol margins were pressured by lower domestic demand and
elevated corn costs. In addition, the prior year’s results included
contributions from the now-sold Peoria facility.
Nutrition delivered revenue
growth of 10%, and 16%1 on a constant currency basis; operating
profit was similar to the prior-year quarter’s, and 7%1 higher on a
constant currency basis, with continued strong demand offset by
some demand fulfillment challenges.
- Human Nutrition results were higher than those of the third
quarter of 2021. Strong demand for plant-based proteins, as well as
solid performance in texturants, drove continued growth in
Specialty Ingredients. Flavors results were impacted by adverse
currency translation effects in EMEA, partially offset by continued
strong demand growth in the region; demand fulfillment challenges
in North America and lower demand in APAC — driven partly by
lockdowns in China — also negatively impacted results. Health &
Wellness was lower versus the prior year, which included higher
income from the Spiber fermentation agreement.
- Animal Nutrition results were down versus the prior-year
quarter. Pet results were lower in Latin America on lower volumes,
partially offset by strong volumes and margins in North America.
Softer animal protein demand affected feed volumes.
Other Business results were
significantly higher than the prior year. Higher short-term
interest rates drove improved earnings in ADM Investor Services,
partially offset by increased claim settlements in captive
insurance.
Other Items of Note
As additional information to help clarify underlying business
performance, the table on page 10 includes reported earnings and
EPS as well as adjusted earnings and EPS.
Segment operating profit of $1.6 billion for the quarter
includes charges of $49 million ($0.07 per share) primarily related
to impairments and restructuring, and gains related to the sale of
certain assets of $29 million ($0.04 per share).
In Corporate results, interest expense increased year over year
on higher interest rates. Unallocated corporate costs were higher
year over year due primarily to performance-related compensation
accruals, higher IT operating and project-related costs, and higher
costs in the company’s centers of excellence. Other Corporate was
favorable versus the prior year primarily due to higher results
from foreign currency-related hedge activity. Corporate results
also included a gain related to the mark-to-market adjustment on
the Wilmar exchangeable bond of $8 million ($0.01 per share).
The effective tax rate for the quarter was approximately 16%,
compared to approximately 18% in the prior year. The decreased rate
was driven primarily by changes in the geographic mix of pretax
earnings, partially offset by the impact of discrete tax items.
1 Constant currency revenue is ADM's GAAP revenue adjusted for
the impact of fluctuations in foreign currency exchange rates.
Constant currency operating profit is ADM's GAAP operating profit
adjusted for the impact of fluctuation in foreign currency exchange
rates. The Company calculates constant currency revenue/operating
profit by converting its current period revenue/operating profit
using the prior period exchange rates and comparing the adjusted
amount to its prior period reported results. Management believes
providing constant currency revenue and constant currency operating
profit provide valuable supplemental information regarding its
revenue and operating profit and facilitate period-to-period
comparison. Constant currency revenue and constant currency
operating profit are non-GAAP measures and are not intended to
replace or be alternatives to GAAP revenues and GAAP operating
profit, the most directly comparable GAAP financial measures.
Note: Additional Facts and Explanations
Additional facts and explanations about results and industry
environment can be found at the end of the ADM Q3 Earnings
Presentation at www.adm.com/webcast.
Conference Call Information
ADM will host a webcast on October 25, 2022, 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.
Forward-Looking Statements
Some of our comments and materials in this presentation
constitute forward-looking statements that reflect management’s
current views and estimates of future economic circumstances,
industry conditions, Company performance and financial results.
These statements and materials are based on many assumptions and
factors that are subject to risk and uncertainties. ADM has
provided additional information in its reports on file with the SEC
concerning assumptions and factors that could cause actual results
to differ materially from those in this presentation, and you
should carefully review the assumptions and factors in our SEC
reports. To the extent permitted under applicable law, ADM assumes
no obligation to update any forward-looking statements as a result
of new information or future events.
About ADM
ADM unlocks the power of nature to enrich the quality of life.
We’re a premier global human and animal nutrition company,
delivering solutions today with an eye to the future. We’re blazing
new trails in health and well-being as our scientists develop
groundbreaking products to support healthier living. We’re a
cutting-edge innovator leading the way to a new future of
plant-based consumer and industrial solutions to replace
petroleum-based products. We’re an unmatched agricultural supply
chain manager and processor, providing food security by connecting
local needs with global capabilities. And we’re a leader in
sustainability, scaling across entire value chains to help
decarbonize our industry and safeguard our planet. From the seed of
the idea to the outcome of the solution, we give customers an edge
in solving the nutritional and sustainability challenges of today
and tomorrow. Learn more at www.adm.com.
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
Nine months ended
September 30
September 30
(In millions)
2022
2021
Change
2022
2021
Change
Segment Operating Profit
$
1,559
$
1,000
$
559
$
4,938
$
3,250
$
1,688
Specified items:
Gain on sale of assets
(29
)
—
(29
)
(30
)
(22
)
(8
)
Impairment, restructuring, and settlement
charges
49
2
47
76
133
(57
)
Adjusted Segment Operating
Profit
$
1,579
$
1,002
$
577
$
4,984
$
3,361
$
1,623
Ag Services and Oilseeds
$
1,075
$
618
$
457
$
3,202
$
1,965
$
1,237
Ag Services
292
36
256
957
435
522
Crushing
346
280
66
1,242
812
430
Refined Products and Other
295
236
59
623
467
156
Wilmar
142
66
76
380
251
129
Carbohydrate Solutions
$
309
$
213
$
96
$
1,099
$
855
$
244
Starches and Sweeteners
327
178
149
1,036
706
330
Vantage Corn Processors
(18
)
35
(53
)
63
149
(86
)
Nutrition
$
177
$
176
$
1
$
605
$
531
$
74
Human Nutrition
146
139
7
470
429
41
Animal Nutrition
31
37
(6
)
135
102
33
Other Business
$
18
$
(5
)
$
23
$
78
$
10
$
68
Segment Operating Profit
$
1,559
$
1,000
$
559
$
4,938
$
3,250
$
1,688
Corporate Results
$
(329
)
$
(347
)
$
18
$
(918
)
$
(948
)
$
30
Interest expense - net
(76
)
(66
)
(10
)
(239
)
(200
)
(39
)
Unallocated corporate costs
(251
)
(231
)
(20
)
(727
)
(681
)
(46
)
Other
(10
)
(17
)
7
39
42
(3
)
Specified items:
Debt extinguishment charges
—
(36
)
36
—
(36
)
36
Expenses related to acquisitions
—
(3
)
3
(2
)
(3
)
1
Gain on debt conversion option
8
7
1
12
17
(5
)
Loss on sale of assets
—
—
—
(3
)
—
(3
)
Restructuring and settlement adjustment
(charges)
—
(1
)
1
2
(87
)
89
Earnings Before Income Taxes
$
1,230
$
653
$
577
$
4,020
$
2,302
$
1,718
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
Nine months ended
September 30
September 30
2022
2021
2022
2021
(in millions, except per share
amounts)
Revenues
$
24,683
$
20,340
$
75,617
$
62,159
Cost of products sold (1)
22,872
19,014
69,809
57,822
Gross profit
1,811
1,326
5,808
4,337
Selling, general, and administrative
expenses (2)
818
720
2,461
2,208
Asset impairment, exit, and restructuring
costs (3)
28
2
30
84
Equity in (earnings) losses of
unconsolidated affiliates
(210
)
(110
)
(606
)
(398
)
Interest and investment income
(85
)
(20
)
(176
)
(83
)
Interest expense (4)
97
61
262
188
Other (income) expense - net (5,6,7)
(67
)
20
(183
)
36
Earnings before income taxes
1,230
653
4,020
2,302
Income tax expense (benefit) (8)
193
120
679
364
Net earnings including noncontrolling
interests
1,037
533
3,341
1,938
Less: Net earnings (losses) attributable
to noncontrolling interests
6
7
20
11
Net earnings attributable to
ADM
$
1,031
$
526
$
3,321
$
1,927
Diluted earnings per common
share
$
1.83
$
0.93
$
5.87
$
3.40
Average diluted shares outstanding
563
566
566
566
(1)
Includes charges related to inventory
writedown of $11 million and $36 million in the current quarter and
YTD respectively, and $13 million in the prior YTD. Current YTD was
partially offset by an insurance settlement of $2 million.
(2)
Includes a contingency/settlement of $10
million in the current quarter and YTD and $38 million in the prior
YTD. Also includes acquisition-related expenses of $2 million in
the current YTD and $3 million in the prior quarter and YTD.
(3)
Includes charges related to the impairment
of certain assets and restructuring of $28 million and $30 million
in the current quarter and YTD, respectively, and $2 million and
$84 million in the prior year quarter and YTD, respectively.
(4)
Includes gains related to the
mark-to-market adjustment of the conversion option of the
exchangeable bond issued in August 2020 of $8 million and $12
million in the current quarter and YTD, respectively, and gains of
$7 million and $17 million in the prior year quarter and YTD,
respectively.
(5)
Includes gains related to the sale of
certain assets of $29 million and $27 million in the current
quarter and YTD, respectively, and gains of $22 million in the
prior YTD.
(6)
Includes a pension settlement charge of $1
million and $83 million in the prior year quarter and YTD,
respectively. Also, includes exit costs of $2 million in the prior
YTD.
(7)
Includes a loss on debt extinguishment of
$36 million in the prior year quarter and YTD primarily related to
the early redemption of the $500 million 2.75% notes due in
2025.
(8)
Includes the tax expense (benefit) impact
of the above specified items and tax discrete items totaling $5
million and $(6) million in the current quarter and YTD,
respectively, and $(13) million and $(62) million in the prior year
quarter and YTD, respectively.
Summary of Financial Condition
(unaudited)
September 30, 2022
September 30, 2021
(in millions)
Net Investment In
Cash and cash equivalents (a)
$
1,099
$
1,083
Operating working capital (b)
11,603
10,396
Property, plant, and equipment
9,605
9,848
Investments in affiliates
5,429
5,148
Goodwill and other intangibles
6,364
5,705
Other non-current assets
2,337
2,307
Net current assets held for sale
—
130
$
36,437
$
34,617
Financed By
Short-term debt (a)
$
181
$
314
Long-term debt, including current
maturities (a)
8,559
8,620
Deferred liabilities
3,378
3,468
Temporary equity
290
225
Shareholders’ equity
24,029
21,990
$
36,437
$
34,617
(a)
Net debt is calculated as short-term debt
plus long-term debt (including current maturities) less cash and
cash equivalents.
(b)
Current assets (excluding cash and cash
equivalents) less current liabilities (excluding short-term debt
and current maturities of long-term debt).
Summary of Cash Flows
(unaudited)
Nine months ended
September 30
2022
2021
(in millions)
Operating Activities
Net earnings
$
3,341
$
1,938
Depreciation and amortization
774
739
Asset impairment charges
20
54
(Gains) losses on sales/revaluation of
assets
(77
)
(95
)
Other - net
599
454
Other changes in operating assets and
liabilities
(1,309
)
2,763
Total Operating Activities
3,348
5,853
Investing Activities
Purchases of property, plant and
equipment
(841
)
(714
)
Net assets of businesses acquired
—
(501
)
Proceeds from sale of business/assets
51
73
Investments in affiliates
(60
)
(7
)
Other investing activities
(98
)
(138
)
Total Investing Activities
(948
)
(1,287
)
Financing Activities
Long-term debt borrowings
752
1,330
Long-term debt payments
(482
)
(533
)
Net borrowings (payments) under lines of
credit
(751
)
(1,726
)
Share repurchases
(1,200
)
—
Cash dividends
(677
)
(626
)
Other
(6
)
1
Total Financing Activities
(2,364
)
(1,554
)
Increase (decrease) in cash, cash
equivalents, restricted cash, and restricted cash
equivalents
36
3,012
Cash, cash equivalents, restricted
cash, and restricted cash equivalents - beginning of period
7,454
4,646
Cash, cash equivalents, restricted
cash, and restricted cash equivalents - end of period
$
7,490
$
7,658
Segment Operating Analysis
(unaudited)
Quarter ended
Nine months ended
September 30
September 30
2022
2021
2022
2021
(in ‘000s metric tons)
Processed volumes (by
commodity)
Oilseeds
7,688
8,509
24,387
26,247
Corn
4,381
5,051
13,969
13,743
Total processed volumes
12,069
13,560
38,356
39,990
Quarter ended
Nine months ended
September 30
September 30
2022
2021
2022
2021
(in millions)
Revenues
Ag Services and Oilseeds
$
19,141
$
15,689
$
58,823
$
48,967
Carbohydrate Solutions
3,581
2,866
10,698
7,909
Nutrition
1,864
1,697
5,791
4,993
Other Business
97
88
305
290
Total revenues
$
24,683
$
20,340
$
75,617
$
62,159
Adjusted Earnings Per Share
A non-GAAP financial measure
(unaudited)
Quarter ended September 30
Nine months ended September
30
2022
2021
2022
2021
In millions
Per share
In millions
Per share
In millions
Per share
In millions
Per share
Net earnings and fully diluted
EPS
$
1,031
$
1.83
$
526
$
0.93
$
3,321
$
5.87
$
1,927
$
3.41
Adjustments:
Loss (gains) on sales of assets and
businesses (a)
(22
)
(0.04
)
—
—
(20
)
(0.04
)
(17
)
(0.03
)
Impairment, restructuring, and settlement
charges (b)
40
0.07
3
0.01
60
0.10
167
0.30
Expenses related to acquisitions (c)
—
—
2
—
1
—
2
—
Debt extinguishment charges (d)
—
—
27
0.05
—
—
27
0.05
Loss (gain) on debt conversion option
(e)
(8
)
(0.01
)
(7
)
(0.01
)
(12
)
(0.02
)
(17
)
(0.03
)
Tax adjustment (f)
7
0.01
(3
)
(0.01
)
2
—
(4
)
(0.01
)
Sub-total adjustments
17
0.03
22
0.04
31
0.04
158
0.28
Adjusted net earnings and adjusted
EPS
$
1,048
$
1.86
$
548
$
0.97
$
3,352
$
5.91
$
2,085
$
3.69
(a)
Current quarter and YTD gains of $29
million and $27 million pretax ($22 million and $20 million after
tax), respectively, were related to the sale of certain assets, tax
effected using the Company’s U.S. income tax rate. Prior YTD gains
of $22 million pretax ($17 million after tax) were related to the
sale of certain assets, tax effected using the Company’s U.S.
income tax rate.
(b)
Current quarter and YTD charges of $49
million and $74 million pretax ($40 million and $60 million after
tax), respectively, were primarily related to the impairment of
certain assets, restructuring charges, and a contingency/settlement
tax effected using the applicable tax rates. Current YTD charges
were also partially offset by an insurance settlement, tax effected
using the applicable tax rate. Prior year quarter charges of $3
million pretax ($3 million after tax) were related to restructuring
and pension settlement, tax effected using the applicable tax
rates. Prior YTD charges of $220 million pretax ($167 million after
tax) were related to the impairment of certain assets,
restructuring, and legal and pension settlements, tax effected
using the applicable tax rates.
(c)
Current YTD expenses of $2 million pretax
($1 million after tax) were related to the Deerland and Sojaprotein
acquisitions, tax effected using the applicable tax rates. Prior
year quarter and YTD expenses of $3 million pretax ($2 million
after tax) were related to the Balto acquisition.
(d)
Prior quarter and YTD debt extinguishment
charges of $36 million pretax ($27 million after tax) were related
to the early redemption of notes, tax effected using the Company’s
U.S. income tax rate.
(e)
Current quarter and YTD gain on debt
conversion option of $8 million and $12 million pretax,
respectively, ($8 million and $12 million after tax, respectively)
and prior year quarter and YTD gain on debt conversion option of $7
million and $17 million pretax, respectively, ($7 million and $17
million after tax, respectively), were 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.
(f)
Tax adjustment due to certain discrete
items totaling $7 million and $2 million in the current quarter and
YTD, respectively, and $(3) million and $(4) million in the prior
year quarter and YTD.
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
Dec. 31, 2021
Mar. 31, 2022
June 30, 2022
Sep. 30, 2022
Sep. 30, 2022
Net earnings attributable to ADM
$
782
$
1,054
$
1,236
$
1,031
$
4,103
Adjustments:
Interest expense
77
92
73
97
339
Other adjustments
66
17
7
27
117
Total adjustments
143
109
80
124
456
Tax on adjustments
(14
)
(26
)
(19
)
(25
)
(84
)
Net adjustments
129
83
61
99
372
Total Adjusted ROIC Earnings
$
911
$
1,137
$
1,297
$
1,130
$
4,475
Adjusted Invested Capital (in
millions)
Quarter Ended
Trailing Four
Dec. 31, 2021
Mar. 31, 2022
June 30, 2022
Sep. 30, 2022
Quarter Average
Equity (1)
$
22,477
$
23,722
$
24,393
$
23,997
$
23,647
+ Interest-bearing liabilities (2)
9,546
13,079
11,524
8,747
10,724
Other adjustments
70
13
5
25
28
Total Adjusted Invested Capital
$
32,093
$
36,814
$
35,922
$
32,769
$
34,399
Adjusted Return on Invested
Capital
13.0
%
(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 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 Taxes,
Interest, and Depreciation and Amortization (EBITDA)
A non-GAAP financial measure
(unaudited)
The tables below provide a reconciliation
of earnings before income taxes to adjusted EBITDA and adjusted
EBITDA by segment for the trailing four quarters ended September
30, 2022.
Four Quarters
Quarter Ended
Ended
Dec. 31, 2021
Mar. 31, 2022
June 30, 2022
Sep. 30, 2022
Sep. 30, 2022
(in millions)
Earnings before income taxes
$
1,011
$
1,271
$
1,519
$
1,230
$
5,031
Interest expense
77
92
73
97
339
Depreciation and amortization
257
257
257
260
1,031
Losses (gains) on sales of assets and
businesses
(55
)
2
—
(29
)
(82
)
Asset impairment, exit, restructuring, and
settlement charges
80
17
8
49
154
Railroad maintenance expense
33
—
9
32
74
Expenses related to acquisitions
4
2
—
—
6
Adjusted EBITDA
$
1,407
$
1,641
$
1,866
$
1,639
$
6,553
Four Quarters
Quarter Ended
Ended
Dec. 31, 2021
Mar. 31, 2022
June 30, 2022
Sep. 30, 2022
Sep. 30, 2022
(in millions)
Ag Services and Oilseeds
$ 902
$ 1,096
$ 1,207
$ 1,166
$ 4,371
Carbohydrate Solutions
510
396
550
391
1,847
Nutrition
220
254
304
242
1,020
Other Business
17
44
24
35
120
Corporate
(242)
(149)
(219)
(195)
(805)
Adjusted EBITDA
$ 1,407
$ 1,641
$ 1,866
$ 1,639
$ 6,553
Adjusted EBITDA is defined as earnings before taxes, interest,
and 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 interest expense and
depreciation and amortization to earnings before income taxes.
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 earnings before income taxes, the most directly
comparable GAAP financial measure.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221024005964/en/
Media Relations Jackie Anderson 312-634-8484
Investor Relations Megan Britt 872-257-8378
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