x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
Delaware
|
41-0129150
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.
R. S. Employer
Identification
No.)
|
4666
Faries Parkway Box 1470
Decatur,
Illinois
(Address
of principal executive offices)
|
62525
(Zip
Code)
|
(217)
424-5200
|
|
(Registrant's
telephone number, including area
code)
|
THREE
MONTHS ENDED
|
||||||
|
SEPTEMBER
30,
|
|||||
|
|
2006
|
|
|
2005
|
|
|
(In
thousands, except
|
|||||
|
per
share amounts)
|
|||||
Net
sales and other operating income
|
$
|
9,446,922
|
$
|
8,626,949
|
||
Cost
of products sold
|
8,581,344
|
8,044,238
|
||||
Gross Profit |
865,578
|
582,711
|
||||
Selling,
general and administrative expenses
|
309,835
|
304,455
|
||||
Other
(income) expense - net
|
(19,510
|
)
|
4,524
|
|||
Earnings Before Income Taxes |
575,253
|
273,732
|
||||
Income
taxes
|
172,508
|
87,394
|
||||
Net Earnings |
$
|
402,745
|
$
|
186,338
|
||
Average
number of shares outstanding - basic
|
656,618
|
651,945
|
||||
Average
number of shares outstanding - diluted
|
660,863
|
653,805
|
||||
Basic
and diluted earnings per common share
|
$
|
0.61
|
$
|
0.29
|
||
Dividends
per common share
|
$
|
0.10
|
$
|
0.085
|
(Unaudited)
|
|
|
|
|
||
|
|
SEPTEMBER
30,
|
|
|
JUNE
30,
|
|
|
|
2006
|
|
|
2006
|
|
|
(In
thousands)
|
|||||
ASSETS
|
||||||
Current
Assets
|
||||||
Cash
and cash equivalents
|
$
|
958,491
|
$
|
1,112,853
|
||
Segregated
cash and investments
|
1,213,600
|
1,220,666
|
||||
Receivables
|
4,774,548
|
4,471,201
|
||||
Inventories
|
5,003,778
|
4,677,508
|
||||
Other
assets
|
428,790
|
344,049
|
||||
Total
Current Assets
|
12,379,207
|
11,826,277
|
||||
Investments
and Other Assets
|
||||||
Investments
in and advances to affiliates
|
2,061,651
|
1,985,662
|
||||
Long-term
marketable securities
|
1,110,308
|
1,110,177
|
||||
Goodwill
|
321,649
|
322,292
|
||||
Other
assets
|
720,332
|
731,590
|
||||
4,213,940
|
4,149,721
|
|||||
Property,
Plant, and Equipment
|
||||||
Land
|
209,920
|
214,091
|
||||
Buildings
|
2,794,272
|
2,774,164
|
||||
Machinery
and equipment
|
11,204,519
|
11,131,992
|
||||
Construction
in progress
|
541,116
|
430,997
|
||||
14,749,827
|
14,551,244
|
|||||
Allowance
for depreciation
|
(9,370,954
|
)
|
(9,258,212
|
)
|
||
5,378,873
|
5,293,032
|
|||||
$
|
21,972,020
|
$
|
21,269,030
|
(Unaudited)
|
|
|
|
|
|||
|
|
|
SEPTEMBER
30,
|
|
|
JUNE
30,
|
|
|
|
|
2006
|
|
|
2006
|
|
|
|
(In
thousands)
|
|||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
|||||||
Current
Liabilities
|
|||||||
Short-term
debt
|
$
|
714,956
|
$
|
549,419
|
|||
Accounts
payable
|
4,115,458
|
4,014,392
|
|||||
Accrued
expenses
|
1,498,978
|
1,521,188
|
|||||
Current
maturities of long-term debt
|
87,295
|
79,768
|
|||||
Total
Current Liabilities
|
6,416,687
|
6,164,767
|
|||||
Long-Term
Liabilities
|
|||||||
Long-term
debt
|
4,012,676
|
4,050,323
|
|||||
Deferred
income taxes
|
745,652
|
756,600
|
|||||
Other
|
507,260
|
490,460
|
|||||
5,265,588
|
5,297,383
|
||||||
Shareholders'
Equity
|
|||||||
Common
stock
|
5,571,922
|
5,511,019
|
|||||
Reinvested
earnings
|
4,418,366
|
4,081,490
|
|||||
Accumulated
other comprehensive income
|
299,457
|
214,371
|
|||||
10,289,745
|
9,806,880
|
||||||
$
|
21,972,020
|
$
|
21,269,030
|
THREE
MONTHS ENDED
|
|||||||
|
|
SEPTEMBER
30,
|
|||||
|
|
|
2006
|
|
|
2005
|
|
|
|
(In
thousands)
|
|||||
Operating
Activities
|
|||||||
Net
earnings
|
$
|
402,745
|
$
|
186,338
|
|||
Adjustments
to reconcile net earnings to net cash provided by
|
|||||||
operating
activities
|
|||||||
Depreciation
|
171,125
|
164,173
|
|||||
Deferred
income taxes
|
(9,749
|
)
|
(27,558
|
)
|
|||
Gain
on marketable securities transactions
|
(4,273
|
)
|
(5,259
|
)
|
|||
Equity
in earnings of affiliates, net of dividends
|
(48,182
|
)
|
(28,278
|
)
|
|||
Stock
contributed to employee benefit plans
|
6,613
|
6,079
|
|||||
Pension
and postretirement accruals (contributions), net
|
19,241
|
(141,561
|
)
|
||||
Other
- net
|
43,241
|
34,695
|
|||||
Changes
in operating assets and liabilities
|
|||||||
Segregated
cash and investments
|
8,340
|
13,316
|
|||||
Receivables
|
(125,980
|
)
|
15,552
|
||||
Inventories
|
(420,596
|
)
|
(117,113
|
)
|
|||
Other
assets
|
(37,063
|
)
|
(34,212
|
)
|
|||
Accounts
payable and accrued expenses
|
72,013
|
338,858
|
|||||
Total
Operating Activities
|
77,475
|
405,030
|
|||||
Investing
Activities
|
|||||||
Purchases
of property, plant, and equipment
|
(251,517
|
)
|
(157,422
|
)
|
|||
Proceeds
from sales of property, plant, and equipment
|
11,398
|
3,404
|
|||||
Net
assets of businesses acquired
|
(20,195
|
)
|
(57,124
|
)
|
|||
Investments
in and advances to affiliates
|
(29,022
|
)
|
(27,040
|
)
|
|||
Distributions
from affiliates, excluding dividends
|
30,059
|
10,296
|
|||||
Purchases
of marketable securities
|
(138,543
|
)
|
(137,347
|
)
|
|||
Proceeds
from sales of marketable securities
|
73,482
|
81,740
|
|||||
Other
- net
|
8,204
|
6,042
|
|||||
Total
Investing Activities
|
(316,134
|
)
|
(277,451
|
)
|
|||
Financing
Activities
|
|||||||
Long-term
debt borrowings
|
9,933
|
598,624
|
|||||
Long-term
debt payments
|
(42,226
|
)
|
(102,236
|
)
|
|||
Net
borrowings under lines of credit agreements
|
167,797
|
56,134
|
|||||
Purchases
of treasury stock
|
(54
|
)
|
(18
|
)
|
|||
Cash
dividends
|
(65,709
|
)
|
(55,491
|
)
|
|||
Other
- net
|
14,556
|
7,825
|
|||||
Total
Financing Activities
|
84,297
|
504,838
|
|||||
Increase
(Decrease) In Cash and Cash Equivalents
|
(154,362
|
)
|
632,417
|
||||
Cash
and Cash Equivalents Beginning of Period
|
1,112,853
|
522,420
|
|||||
Cash
and Cash Equivalents End of Period
|
$
|
958,491
|
$
|
1,154,837
|
|||
THREE
MONTHS ENDED
|
|||||||
|
|
SEPTEMBER
30,
|
|||||
|
|
|
2006
|
|
|
2005
|
|
|
|
(In
thousands)
|
|||||
Net
earnings
|
$
|
402,745
|
$
|
186,338
|
|||
Net
change in unrealized gain (loss) on investments
|
7,771
|
(11,717
|
)
|
||||
Deferred
gain on hedging activities
|
48,254
|
60,404
|
|||||
Minimum
pension liability adjustment
|
114
|
104
|
|||||
Foreign
currency translation adjustment
|
28,947
|
(7,121
|
)
|
||||
Comprehensive
income
|
$
|
487,831
|
$
|
228,008
|
THREE
MONTHS ENDED
|
|||||||
|
|
SEPTEMBER
30,
|
|||||
|
|
|
2006
|
|
|
2005
|
|
|
|
(In
thousands)
|
|||||
Interest
expense
|
$
|
97,051
|
$
|
86,289
|
|||
Investment
income
|
(60,709
|
)
|
(37,774
|
)
|
|||
Net
gain on marketable securities transactions
|
(4,273
|
)
|
(5,259
|
)
|
|||
Equity
in earnings of unconsolidated affiliates
|
(56,615
|
)
|
(35,680
|
)
|
|||
Other
- net
|
5,036
|
(3,052
|
)
|
||||
$
|
(19,510
|
)
|
$
|
4,524
|
Pension
Benefits
|
Postretirement
Benefits
|
||||||||||||
|
|
THREE
MONTHS ENDED
|
THREE
MONTHS ENDED
|
||||||||||
|
|
SEPTEMBER
30,
|
SEPTEMBER
30,
|
||||||||||
|
|
|
2006
|
|
|
2005
|
|
|
2006
|
|
|
2005
|
|
|
|
(In
thousands)
|
(In
thousands)
|
||||||||||
Service
cost (benefits earned during the period)
|
$
|
15,358
|
$
|
14,630
|
$
|
1,756
|
$
|
1,665
|
|||||
Interest
cost
|
23,100
|
21,429
|
2,435
|
2,131
|
|||||||||
Expected
return on plan assets
|
(25,303
|
)
|
(20,076
|
)
|
-
|
-
|
|||||||
Actuarial
loss
|
4,858
|
8,749
|
159
|
107
|
|||||||||
Net
amortization
|
1,561
|
1,178
|
(279
|
)
|
(279
|
)
|
|||||||
Net
periodic defined benefit plan expense
|
$
|
19,574
|
$
|
25,910
|
$
|
4,071
|
$
|
3,624
|
THREE
MONTHS ENDED
|
|||||||
|
|
SEPTEMBER
30,
|
|||||
|
|
|
2006
|
|
|
2005
|
|
|
|
(In
thousands)
|
|||||
Sales
to external customers
|
|||||||
Oilseeds
Processing
|
$
|
3,233,790
|
$
|
2,988,966
|
|||
Corn
Processing
|
1,260,890
|
1,160,213
|
|||||
Agricultural
Services
|
3,815,096
|
3,353,959
|
|||||
Other
|
1,137,146
|
1,123,811
|
|||||
Total
|
$
|
9,446,922
|
$
|
8,626,949
|
|||
Intersegment
sales
|
|||||||
Oilseeds
Processing
|
$
|
104,825
|
$
|
40,922
|
|||
Corn
Processing
|
76,263
|
88,648
|
|||||
Agricultural
Services
|
305,692
|
311,467
|
|||||
Other
|
30,188
|
27,589
|
|||||
Total
|
$
|
516,968
|
$
|
468,626
|
|||
Net
sales
|
|||||||
Oilseeds
Processing
|
$
|
3,338,615
|
$
|
3,029,888
|
|||
Corn
Processing
|
1,337,153
|
1,248,861
|
|||||
Agricultural
Services
|
4,120,788
|
3,665,426
|
|||||
Other
|
1,167,334
|
1,151,400
|
|||||
Intersegment
elimination
|
(516,968
|
)
|
(468,626
|
)
|
|||
Total
|
$
|
9,446,922
|
$
|
8,626,949
|
|||
Segment
operating profit
|
|||||||
Oilseeds
Processing
|
$
|
169,645
|
$
|
99,115
|
|||
Corn
Processing
|
290,498
|
136,258
|
|||||
Agricultural
Services
|
111,299
|
20,009
|
|||||
Other
|
76,492
|
95,136
|
|||||
Total
segment operating profit
|
647,934
|
350,518
|
|||||
Corporate
|
(72,681
|
)
|
(76,786
|
)
|
|||
Earnings
before income taxes
|
$
|
575,253
|
$
|
273,732
|
THREE
MONTHS ENDED
|
|
|
|
|||||||
|
|
SEPTEMBER
30,
|
|
|
|
|||||
|
|
|
2006
|
|
|
2005
|
|
|
Change
|
|
|
|
(In
thousands)
|
||||||||
Oilseeds
Processing
|
$
|
3,233,790
|
$
|
2,988,966
|
$
|
244,824
|
||||
Corn
Processing
|
||||||||||
Sweeteners
and Starches
|
538,981
|
503,087
|
35,894
|
|||||||
Bioproducts
|
721,909
|
657,126
|
64,783
|
|||||||
Total
Corn Processing
|
1,260,890
|
1,160,213
|
100,677
|
|||||||
Agricultural
Services
|
3,815,096
|
3,353,959
|
461,137
|
|||||||
Other
|
||||||||||
Food,
Feed and Industrial
|
1,113,479
|
1,107,881
|
5,598
|
|||||||
Financial
|
23,667
|
15,930
|
7,737
|
|||||||
Total
Other
|
1,137,146
|
1,123,811
|
13,335
|
|||||||
Total
|
$
|
9,446,922
|
$
|
8,626,949
|
$
|
819,973
|
THREE
MONTHS ENDED
|
|
|
|
|||||||
|
|
SEPTEMBER
30,
|
|
|
|
|||||
|
|
|
2006
|
|
|
2005
|
|
|
Change
|
|
|
|
(In
thousands)
|
||||||||
Oilseeds
Processing
|
$
|
169,645
|
$
|
99,115
|
$
|
70,530
|
||||
Corn
Processing
|
||||||||||
Sweeteners
and Starches
|
112,914
|
92,481
|
20,433
|
|||||||
Bioproducts
|
177,584
|
43,777
|
133,807
|
|||||||
Total
Corn Processing
|
290,498
|
136,258
|
154,240
|
|||||||
Agricultural
Services
|
111,299
|
20,009
|
91,290
|
|||||||
Other
|
||||||||||
Food,
Feed and Industrial
|
38,169
|
69,229
|
(31,060
|
)
|
||||||
Financial
|
38,323
|
25,907
|
12,416
|
|||||||
Total
Other
|
76,492
|
95,136
|
(18,644
|
)
|
||||||
Total
Segment Operating Profit
|
647,934
|
350,518
|
297,416
|
|||||||
Corporate
|
(72,681
|
)
|
(76,786
|
)
|
4,105
|
|||||
Earnings
Before Income Taxes
|
$
|
575,253
|
$
|
273,732
|
$
|
301,521
|
SEPTEMBER
30, 2006
|
JUNE
30, 2006
|
||||||||||||
|
|
|
Fair
Value
|
|
|
Market
Risk
|
|
|
Fair
Value
|
|
|
Market
Risk
|
|
|
|
(in
millions)
|
|||||||||||
Highest
position - long (short)
|
$
|
682
|
$
|
68
|
$
|
510
|
$
|
51
|
|||||
Lowest
position - long (short)
|
187
|
19
|
(574
|
)
|
(57
|
)
|
|||||||
Average
position - long (short)
|
477
|
48
|
(203
|
)
|
(20
|
)
|
|
|
|
Total
Number of
|
|
Number
of Shares
|
|||||||||||
|
|
|
Total
Number
|
|
|
Average
|
|
|
Shares
Purchased as
|
|
Remaining
that May be
|
|||||
|
|
|
of
Shares
|
|
|
Price
Paid
|
|
|
Part
of Publicly
|
|
Purchased
Under the
|
|||||
Period
|
|
|
Purchased
(1)
|
|
|
per
Share
|
|
|
Announced
Program (2)
|
|
Program
(2)
|
|||||
July
1, 2006 to
|
||||||||||||||||
July
31, 2006
|
389
|
$
|
41.42
|
389
|
92,864,253
|
|||||||||||
August
1, 2006 to
|
||||||||||||||||
August
31, 2006
|
17,654
|
42.64
|
512
|
92,863,741
|
||||||||||||
September
1, 2006 to
|
||||||||||||||||
September
30, 2006
|
1,218
|
39.49
|
407
|
92,863,334
|
||||||||||||
Total
|
19,261
|
$
|
42.42
|
1,308
|
92,863,334
|
(4)
|
Indenture
dated as of September 20, 2006 between the Company and JP Morgan
Chase
Bank, filed on September 22, 2006 as Exhibit 4 to Form S-3 (File
No.
333-137541), is incorporated herein by
reference.
|
(31.1)
|
Certification
of Chief Executive Officer pursuant to Rule 13a - 14(a) and Rule
15d-14(a)
of the Securities Exchange Act, as
amended.
|
(31.2)
|
Certification
of Chief Financial Officer pursuant to Rule 13a - 14(a) and Rule
15d-14(a)
of the Securities Exchange Act, as
amended.
|
(32.1)
|
Certification
of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted
pursuant
to Section 906 of the Sarbanes-Oxley Act of
2002.
|
(32.2)
|
Certification
of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted
pursuant
to Section 906 of the Sarbanes-Oxley Act of
2002.
|
ARCHER-DANIELS-MIDLAND
COMPANY
|
||
/s/
D. J. Schmalz
|
||
D.
J. Schmalz
|
||
Senior
Vice President
|
||
and
Chief Financial Officer
|
||
/s/
D. J. Smith
|
||
D.
J. Smith
|
||
Executive
Vice President, Secretary and
|
||
General
Counsel
|