Archer Daniels Midland Reports Annual Results

Segment operating profit hits new record of $ 3.4 billion
DECATUR, Ill., Aug. 5 /PRNewswire-FirstCall/ --

-- Net earnings for the year ended June 30, 2008 decreased 17 % to
$ 1.8 billion - $ 2.79 per share from $ 2.2 billion - $ 3.30 per share.
Net earnings for the year ended June 30, 2007 include after-tax gains
on asset sales of $ 665 million - $ 1.01 per share.

-- Net sales and other operating income for the year ended June 30, 2008
increased 59 % to $ 69.8 billion from $ 44.0 billion last year due
principally to higher average selling prices resulting primarily from
increases in underlying commodity costs.

-- Segment operating profit hit a new record of $ 3.4 billion for the
year, up $ 280 million from fiscal 2007 due principally to improved
operating results of Agricultural Services and crushing and origination
earnings in Oilseeds Processing.

"ADM's 2008 results demonstrate the ability of our people to leverage our
global assets against an exceptional set of opportunities" said Patricia
Woertz, Chairman and CEO. "We had an outstanding year, highlighted by record
segment operating profit. ADM met the needs of food, feed, fuel and
industrial customers even as strong demand for crops and commodities
challenged the global supply chain."

-- Financial Highlights
(Amounts in millions, except per share data and percentages)

THREE MONTHS ENDED TWELVE MONTHS ENDED
6/30/08 6/30/07 % CHANGE 6/30/08 6/30/07 % CHANGE
Net sales and other
operating income $21,784 $12,214 78% $69,816 $44,018 59%
Segment operating
profit $777 $1,152 (33) $3,441 $3,161 9%
Net earnings $372 $955 (61)% $1,802 $2,162 (17)%
Earnings per share $.58 $1.47 (61)% $2.79 $3.30 (15)%
Average number of
shares outstanding 647 648 - 646 656 (2)%

-- Net earnings for the fourth quarter decreased $ 583 million to $ 372
million - $ .58 per share from $ 955 million - $ 1.47 per share last
year. Net earnings for the quarter ended June 30, 2007 includes
after-tax gains on asset sales of $ 616 million - $ .95 per share.

-- Net sales and other operating income increased 78 % to $ 21.8 billion
for the quarter ended June 30, 2008, due principally to higher average
selling prices resulting primarily from increases in underlying
commodity costs.

-- Segment operating profit for the quarter decreased 33 % to $ 777
million. This decrease was due primarily to gains on asset sales in
the prior year fourth quarter.

-- Oilseeds Processing operating profit decreased as fourth quarter
2007 results included a $ 440 million gain related to the exchange
of the Company's interests in certain Chinese joint ventures for
shares in Wilmar International Ltd. Global demand for vegetable oil
and protein meal continued to be strong.
-- Corn Processing operating profit increased due primarily to
increased ethanol sales volumes and higher average selling prices of
Sweeteners and Starches.
-- Agricultural Services operating profit decreased due principally to
the $ 153 million gain on the sale of the Company's investment in
Agricore United recognized in the fourth quarter of 2007 partially
offset by increased sales volumes and margins.

Discussion of Operations
Net sales and other operating income increased 78 % to $ 21.8 billion for
the quarter and 59 % to $ 69.8 billion for the twelve months. For both the
quarter and year, higher selling prices resulting primarily from sharp rises
in underlying commodity costs accounted for approximately 90 % of the increase
while higher sales volumes, principally ethanol and merchandised oilseeds and
grains, accounted for the remaining 10 % increase.

A summary of segment operating profit and net earnings is as follows:

Three months Twelve months
ended ended
June 30 June 30
2008 2007 Change 2008 2007 Change
(in millions)
Oilseeds
Processing $375 $592 $(217) $1,040 $1,139 $(99)
Corn Processing 262 229 33 961 1,105 (144)
Agricultural Services 106 246 (140) 1,017 538 479
Other 34 85 (51) 423 379 44
Segment operating profit 777 1,152 (375) 3,441 3,161 280
Corporate (238) 242 (480) (817) (7) (810)
Earnings before income
taxes 539 1,394 (855) 2,624 3,154 (530)
Income taxes (167) (439) 272 (822) (992) 170
Net earnings $372 $955 $(583) $1,802 $2,162 $(360)

Net earnings decreased $ 583 million for the quarter and $ 360 million for
the twelve months due principally to the impact on Earnings before income
taxes of $ 967 million and $ 1.042 billion of gains related to asset disposals
recognized in the fourth quarter and twelve months of 2007, respectively. In
addition, Corporate results decreased due to charges related to LIFO inventory
valuations which increased from $ 60 million to $ 198 million for the quarter
and from $ 207 million to $ 569 million for the year. Income taxes decreased
$ 272 million for the quarter and $ 170 million for the twelve months due
principally to decreased income before tax.

Oilseeds Processing Operating Profit

Three months Twelve months
ended ended
June 30 June 30
2008 2007 Change 2008 2007 Change
(in millions)

Crushing and origination $276 $80 $196 $727 $414 $313
Refining, packaging,
biodiesel and other 34 45 (11) 181 202 (21)
Asia 65 467 (402) 132 523 (391)
Total Oilseeds Processing $375 $592 $(217) $1,040 $1,139 $(99)

Oilseeds Processing operating profit decreased $ 217 million for the
quarter and $ 99 million for the twelve months due principally to the $ 440
million gain in last year's quarter related to the exchange of the Company's
interests in certain Chinese joint ventures for shares in Wilmar International
Ltd., partially offset by improved global processing margins. Crushing and
origination results increased $ 196 million for the quarter and $ 313 million
for the twelve months due to increased operating margins from continuing
strong global demand for protein meal and vegetable oil and to higher volumes
and margins related to origination and fertilizer operations. Refining,
packaging, biodiesel and other results decreased $ 11 million for the quarter
and $ 21 million for the twelve months due principally to asset impairment
charges of $ 9 million for the quarter and $ 27 million for the year. Last
year's twelve months refining, packaging, biodiesel and other results include
a $ 14 million gain from business disposals.
Corn Processing Operating Profit
Three months Twelve months
ended ended
June 30 June 30
2008 2007 Change 2008 2007 Change
(in millions)

Sweeteners and starches $120 $105 $15 $529 $509 $20
Bioproducts 142 124 18 432 596 (164)
Total Corn Processing $262 $229 $33 $961 $1,105 $(144)

Corn Processing operating profit increased $ 33 million for the quarter
and decreased $ 144 million for the twelve months. Average selling prices for
sweeteners and starches increased for both the quarter and twelve months while
average ethanol selling prices decreased slightly. Ethanol sales volumes
increased for both the quarter and the twelve months due to good demand and
improved gasoline blending economics. Ethanol sales volumes also increased
due to additional sales of merchandised product. Net corn costs were
relatively unchanged for the quarter but were higher for the year.
Manufacturing costs increased for both the quarter and twelve months due
principally to higher energy-related costs.

Agricultural Services Operating Profit

Three months Twelve months
ended ended
June 30 June 30
2008 2007 Change 2008 2007 Change
(in millions)

Merchandising and handling $88 $232 $(144) $873 $382 $491
Transportation 18 14 4 144 156 (12)
Total Agricultural Services $106 $246 $(140) $1,017 $538 $479

Agricultural Services results decreased $ 140 million for the quarter due
primarily to last year's $ 153 million gain resulting from the sale of the
Company's interest in Agricore United. Agricultural Services results
increased $ 479 million for the twelve months due principally to enhanced
merchandising and handling margins caused by the highly volatile grain markets
and favorable risk management results partially offset by higher operating
costs and last year's $ 153 million gain from the Agricore United disposal.

Other Operating Profit

Three months Twelve months
ended ended
June 30 June 30
2008 2007 Change 2008 2007 Change
(in millions)

Wheat, cocoa and malt $12 $33 $(21) $217 $209 $8
Financial 22 52 (30) 206 170 36
Total Other $34 $85 $(51) $423 $379 $44

Other operating profit decreased $ 51 million for the quarter and
increased $ 44 million for the twelve months. Wheat, cocoa and malt
operations declined $ 21 million for the quarter and increased $ 8 million for
the twelve months due principally to lower equity earnings of affiliates and
decreased cocoa processing margins, partially offset by improved malt
operating margins. Last year's twelve month results include a $ 39 million
gain from business disposals. Financial earnings declined $ 30 million for
the quarter due primarily to lower valuations of the Company's managed fund
investments. Financial earnings increased $ 36 million for the twelve months
due principally to higher brokerage services income.

Corporate Results

Three months Twelve months
ended ended
June 30 June 30
2008 2007 Change 2008 2007 Change
(in millions)

LIFO (charge) $(198) $(60) $(138) $(569) $(207) $(362)
Investment (expense) income (3) 26 (29) 85 78 7
Charge on debt repurchase - (46) 46 - (46) 46
Gain on security transactions - 363 (363) 3 374 (371)
Corporate costs (54) (41) (13) (262) (211) (51)
Other 17 - 17 (74) 5 (79)
Total Corporate $(238) $242 $(480) $(817) $(7) $(810)

Corporate results decreased $ 480 million for the quarter and $ 810
million for the year due principally to increases in LIFO charges of $ 138
million for the quarter and $ 362 million for the year and to securities gains
recorded in the prior year of $ 363 million and $ 374 million for the fourth
quarter and year respectively. Corporate costs increased $ 13 million for the
quarter and $ 51 million for the year due principally to increased
reorganization and realignment costs. Other principally represents the
elimination of after-tax earnings of minority interests.
Conference Call Information
Archer Daniels Midland Company will host a conference call and audio Web
cast at 8:00 a.m. Central Time on Tuesday, August 5, 2008 to discuss financial
results and provide a Company update. In addition, a financial summary slide
presentation will be available to download approximately 60 minutes prior to
the start of the call. To listen to the call via the Internet or to download
the slide presentation, go to http://www.admworld.com/webcast. To listen by
telephone, dial 800-591-6930 or 617-614-4908; the access code is 64043411.
Replay of the call will be available beginning August 5, 2008, at 10:00 a.m.
Central Time and ending August 12, 2008. To listen to the replay by
telephone, dial 888-286-8010 or 617-801-6888; the access code is 50224032. To
listen to the replay online, visit http://www.admworld.com/webcast.
Every day, the 27,000 people of Archer Daniels Midland Company (NYSE: ADM)
turn crops into renewable products that meet the demands of a growing world.
At more than 240 processing plants, we convert corn, oilseeds, wheat and cocoa
into products for food, animal feed, chemical and energy uses. We operate the
world's premier crop origination and transportation network, connecting crops
and markets in more than 60 countries. Our global headquarters is in Decatur,
Illinois, and our net sales for the fiscal year ended June 30, 2008, were $70
billion. For more information about our Company and our products, visit
http://www.admworld.com.
(Financial Tables Follow)

Archer Daniels Midland Company
Consolidated Statements of Earnings
(unaudited)

Three months ended Twelve months ended
June 30 June 30
2008 2007 2008 2007
(in millions, except per share amounts)

Net sales and other operating income $21,784 $12,214 $69,816 $44,018
Cost of products sold 20,977 11,496 65,974 40,781
Gross profit 807 718 3,842 3,237

Selling, general and administrative
expenses 347 293 1,419 1,195
Other (income) expense - net* (79) (969) (201) (1,112)
Earnings before income taxes 539 1,394 2,624 3,154

Income taxes 167 439 822 992
Net earnings $372 $955 $1,802 $2,162

Diluted earnings per common share $.58 $1.47 $2.79 $3.30

Average number of shares outstanding 647 648 646 656

*Other (income) expense - net
Interest expense $139 $111 $477 $434
Investment income (66) (65) (269) (257)
Charge on debt repurchase - 46 - 46
Net gain on marketable securities (1) (369) (38) (393)
(Gain) loss on sales and exchanges of
businesses - (598) (17) (649)
Equity in earnings of unconsolidated
affiliates (128) (86) (415) (294)
Other - net (23) (8) 61 1
$(79) $(969) $(201) $(1,112)

Archer Daniels Midland Company
Segment Operating Analysis
(unaudited)

Three months ended Twelve months ended
June 30 June 30
2008 2007 2008 2007
(in millions)
Net sales and other operating
income
Oilseeds Processing $7,692 $4,112 $23,279 $13,943
Corn Processing 2,125 1,572 7,137 5,825
Agricultural Services 10,417 5,545 33,968 20,419
Other 1,550 985 5,432 3,831
Total net sales and other
operating income $21,784 $12,214 $69,816 $44,018

Three months ended Twelve months ended
June 30 June 30
2008 2007 2008 2007
(in millions)
Segment operating profit
Oilseeds Processing (1)(2) $375 $592 $1,040 $1,139
Corn Processing (1) 262 229 961 1,105
Agricultural Services (2) 106 246 1,017 538
Other (1)(2) 34 85 423 379
Total segment operating profit $777 $1,152 $3,441 $3,161

Three months ended Twelve months ended
June 30 June 30
2008 2007 2008 2007
(in 000s metric tons)
Processing volumes
Oilseeds Processing 7,248 7,135 29,531 28,439
Corn Processing 4,394 4,495 17,666 18,043
Wheat, cocoa and malt 2,043 1,999 8,283 8,132
Total processing volumes 13,685 13,629 55,480 54,614

(1) Includes asset impairment charges in Oilseeds of $10 million for the
quarter ended June 30, 2008 and $5 million for the quarter ended June
30, 2007. Includes asset impairment charges in Corn of $14 million
for the quarter ended June 30, 2007. Includes asset impairment
charges in Oilseeds of $28 million for the year ended June 30, 2008
and $6 million for the year ended June 30, 2007. Includes asset
impairment charges in Corn of $2 million for the year ended June 30,
2008 and $15 million for the year ended June 30, 2007. Includes asset
impairment charges in Other of $2 million for the year ended June 30,
2008.

(2) Includes a $440 million gain on asset and business disposals in
Oilseeds for the quarter and $ 454 million for the year ended June 30,
2007. Includes a $158 million gain on asset and business disposals in
Agricultural Services for the quarter and year ended June 30, 2007.
Includes a $5 million gain on asset and business disposals in Other
for the quarter ended June 30, 2008 and $6 million gain for the
quarter ended June 30, 2007. Includes a $5 million gain on asset and
business disposals in Other for the year ended June 30, 2008 and $ 60
million gain for the year ended June 30, 2007.

Archer Daniels Midland Company
Summary of Financial Condition
(unaudited)

June 30 June 30
2008 2007
(in millions)
NET INVESTMENT IN
Working capital $14,189 $7,787
Property, plant, and equipment 7,125 6,010
Investments in and advances to affiliates 2,773 2,498
Long-term marketable securities 590 657
Other non-current assets 1,113 831
$25,790 $17,783

FINANCED BY
Short-term debt $3,123 $468
Long-term debt, including current maturities 7,922 4,817
Deferred liabilities 1,255 1,245
Shareholders' equity 13,490 11,253
$25,790 $17,783

SUMMARY OF CASH FLOWS
(unaudited)
June 30
2008 2007
(in millions)
Operating Activities
Net earnings $1,802 $2,162
Depreciation and asset abandonments 753 722
Other - net (151) (939)
Changes in operating assets and liabilities (5,608) (1,642)
Total Operating Activities (3,204) 303
Investing Activities
Purchases of property, plant and equipment (1,779) (1,198)
Net assets of businesses acquired (13) (103)
Other investing activities (103) 946
Total Investing Activities (1,895) (355)
Financing Activities
Long-term debt borrowings 3,095 1,166
Long-term debt payments (69) (549)
Net borrowings under lines of credit 2,574 (110)
Purchases of treasury stock (61) (533)
Purchase of convertible note hedge - (299)
Sale of stock warrants - 170
Cash dividends (316) (281)
Other 23 38
Total Financing Activities 5,246 (398)
Increase (decrease) in cash and cash equivalents 147 (450)
Cash and cash equivalents - beginning of period 663 1,113
Cash and cash equivalents - end of period $810 $663

SOURCE Archer Daniels Midland Company

David Weintraub, Director, External Communications, +1-217-424-5413, or Dwight
Grimestad, Vice President, Investor Relations, +1-217-424-4586, both of Archer
Daniels Midland Company