ADM(ADM) - 2024 Q3 - Quarterly Report

Financial Performance - Revenues for the three months ended September 30, 2024, were $19,937 million, a decrease of 8.1$21,695 million in the same period of 2023[13] - Gross profit for the three months ended September 30, 2024, was $1,365 million, down 24.6$1,810 million in the prior year[13] - Net earnings attributable to Archer-Daniels-Midland Company for the three months ended September 30, 2024, were $18 million, a significant decline from$821 million in the same period of 2023[13] - Basic earnings per common share for the three months ended September 30, 2024, were $0.04, compared to$1.52 in the same period of 2023[13] - Comprehensive income attributable to Archer-Daniels-Midland Company for the three months ended September 30, 2024, was $58 million, down from$643 million in the same period of 2023[16] - Net earnings for the nine months ended September 30, 2024, were $1,218 million, a decrease from$2,924 million in the same period of 2023, representing a decline of approximately 58.3%[24] - Total segment operating profit for the nine months ended September 30, 2024 was $3,158 million, down from$4,616 million for the same period in 2023, a decline of 32%[198] Assets and Liabilities - Total current assets decreased to $26,626 million as of September 30, 2024, from$29,767 million at the end of September 2023[21] - Total liabilities decreased to $38,932 million as of September 30, 2024, from$40,166 million at the end of September 2023[21] - Total assets as of September 30, 2024, amounted to $9,066 million, a decrease from$10,104 million as of December 31, 2023[88] - Total liabilities as of September 30, 2024, were $1,949 million, compared to$2,421 million as of December 31, 2023, indicating a reduction in liabilities[88] - The fair value of the company's long-term debt, excluding the current portion, was $7.5 billion as of September 30, 2024, compared to a carrying value of$7.6 billion[151] Cash Flow and Investments - Net cash provided by operating activities increased to $2,468 million, up from$1,891 million, reflecting a growth of about 30.5% year-over-year[24] - Net cash used by investing activities was $2,002 million, significantly higher than$1,061 million in the previous year, marking an increase of approximately 88.5%[24] - Share repurchases totaled $2,327 million, compared to$1,118 million in the same period last year, reflecting an increase of about 108.5%[24] - Cash dividends paid were $744 million, slightly up from$738 million, representing an increase of 0.8%[24] - The Company reported a total of $11.6 billion in purchases and$11.8 billion in sales for the nine months ended September 30, 2024[107] Segment Performance - The Ag Services and Oilseeds segment generated $5,139 million in revenues, with a 552 million increase year-over-year[69] - The Carbohydrate Solutions segment reported revenues of$8,370 million, with no year-over-year change noted[69] - The Nutrition segment achieved revenues of $5,490 million, maintaining consistent performance compared to the previous year[69] - The Ag Services and Oilseeds segment reported an operating profit of$480 million for the three months ended September 30, 2024, compared to $848 million for the same period in 2023, a decrease of 43$507 million for the three months ended September 30, 2024, compared to $79 million in the same period of 2023[13] - The Company reported an asset impairment charge of$517 million for the nine months ended September 30, 2024, compared to $120 million in 2023, indicating a significant increase of 331.7$15 million, primarily related to employee severance[201] Tax and Regulatory Matters - The company’s effective tax rate was 83.3% for the three months ended September 30, 2024, an increase from 20.1% for the same period in 2023, primarily due to the impairment of an investment[156] - The Company received a tax assessment of $122 million from the Netherlands tax authority, which was later reduced to$52 million by the Tax Court of Appeals[159] - The Company accrued a final assessed tax amount of $52 million as of September 30, 2024, following the Tax Court's ruling[159] Share Repurchase and Dividends - On March 12, 2024, the Company initiated an accelerated share repurchase (ASR) program to repurchase$1.0 billion of its common stock, with a target of repurchasing up to 200 million shares by December 31, 2024[160] - As of September 30, 2024, the Company had 14.8 million shares remaining under its existing share repurchase program[164] - The total number of shares repurchased under the ASR agreement included 8,880,986 shares at an average price of $60.596, totaling$538 million, and a final delivery of 7,325,733 shares at an average price of $63.045, totaling$462 million[161][163] Receivables and Cash Collections - The Company recorded a loss on sale of receivables of $22 million for the three months ended September 30, 2024, compared to$11 million for the same period in 2023, representing a year-over-year increase of 100%[206] - Total receivables sold for the nine months ended September 30, 2024, were $34.9 billion, compared to$41.2 billion for the same period in 2023, indicating a decrease of approximately 5.7%[205] - Cash collections from customers on receivables sold were $34.0 billion for the nine months ended September 30, 2024, down from$40.7 billion in 2023, reflecting a decline of about 16.5%[205]