ADM (NYSE: ADM) has reported its financial results for the third quarter of 2024, along with restated financial statements for its fiscal year 2023 and the first and second quarters of 2024. The restatement had no impact on the company’s consolidated financial results for any of the periods covered by those reports.
For the third quarter of 2024, ADM reported net earnings of $18 million, with adjusted net earnings of $530 million. Earnings per share were $0.04, with adjusted earnings per share of $1.09, both down compared to the prior year period. The company also highlighted a trailing four-quarter average return on invested capital (ROIC) of 6.6% and a trailing four-quarter average adjusted ROIC of 8.8%.
Year-to-date cash flows from operating activities were $2,468 million, with cash flows from operations before working capital of $2,341 million, compared to $1,891 million and $3,804 million respectively for the corresponding prior-year year-to-date period.
In the third quarter of 2024, earnings before income taxes were $108 million, down 90% compared to the prior year quarter. Total segment operating profit was $1,037 million, down 28% versus the prior year quarter. For the year-to-date period, earnings before taxes were $1,588 million, down 55% versus the prior year, with total segment operating profit at $3,158 million, down 32%.
Segment operating profit for ADM's Ag Services & Oilseeds was $480 million in the third quarter of 2024, down 43% from the prior year quarter. Carbohydrate Solutions segment operating profit was $452 million, a 3% decrease compared to the prior year period. Nutrition segment operating profit was $105 million, down 19% compared to the prior year period.
ADM affirmed its previously provided EPS guidance for the full year 2024 in the range of $4.50 to $5.00. The company expects adjusted earnings per share to be influenced by trends in its performance to date, legislative and regulatory policy uncertainties, and ongoing headwinds from slower market demand and internal operational challenges.
The press release also mentioned a non-cash impairment charge against GAAP earnings for the third quarter of 2024 of $461 million related to ADM's equity investment in Wilmar. The company is continuing to evaluate trends in the trading price of its Wilmar equity investment and the potential for future charges that could result.
Following these announcements, the company's shares moved -1.2%, and are now trading at a price of $52.71. For the full picture, make sure to review Archer-Daniels-Midland's 8-K report.
