Archer-Daniels-Midland Co

NYSE:ADMUnited States

04:41 AM EST, 11/05/2024 (MT Newswires) -- Archer-Daniels-Midland (ADM) said Monday that it expects Q3 adjusted earnings of $1.09 per diluted share, down from $1.63 a year earlier. Analysts polled by Capital IQ expect $1.25. The company lowered its ...

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. Mar. Sep. 31, 31, 30, Sep. 30, 2023 2024 Jun. 30, 2024 2024 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.