ADM Fourth-Quarter Earnings Up $ 388 Million

Archer Daniels Midland Company (NYSE:ADM) today reported net earnings of
$ 1.9 billion and segment operating profit of $ 3.2 billion for the year
ended June 30, 2010, up $ 246 million and $ 786 million, respectively,
from the prior year. For fiscal year 2010, ADM earned $ 3.00 diluted
EPS, versus $ 2.62 for the year prior.

For the quarter ended June 30, 2010, net earnings increased $ 388
million to $ 446 million, and segment operating profit increased $ 591
million to $ 799 million from the Company′s totals for the same period
one year earlier.

• 
  ADM earned $ 0.69 diluted EPS for the fourth quarter, versus last
  year′s $ 0.09 fourth quarter.
  
• 
  Profit in ADM′s Oilseeds Processing segment increased $ 132 million
  due to improved margins and higher volumes.
  
• 
  Corn Processing profit increased $ 151 million on stronger bioproducts
  results.
  
• 
  In the Agricultural Services segment, profit increased $ 195 million
  as ADM saw a good global supply of grains and oilseeds and modestly
  improving demand, particularly in Asia.
  
• 
  Other business units′ operating profit increased $ 113 million,
  reflecting improved results of ADM′s cocoa and flour milling
  operations and of equity investee Gruma S.A.B. de C.V.
  

'The ADM team finished strong, capping a very good year with very good
fourth-quarter performance,? said Chairman of the Board and Chief
Executive Officer Patricia Woertz. 'As we begin our new fiscal year, our
large projects are nearly finished, and we commit to use our strong
balance sheet and cash flow to deliver shareholder value.?

Financial Highlights

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

Discussion of Operations

Net earnings for the fourth quarter increased $ 388 million due to a $
591 million pretax increase in segment operating profit, partially
offset by higher corporate expense and a $ 111 million increase in
income tax expense. Income tax expense increased due primarily to higher
pretax earnings. Last year′s fourth quarter income tax expense included
favorable currency-translation impacts, partially offset by charges
related to the restructuring of ADM′s investment in Wilmar
International, Ltd.

For the full fiscal year, net earnings increased $ 246 million due to a
$ 786 million pretax increase in segment operating profit, partially
offset by higher corporate expense which included a $ 296 million
after-tax negative impact from changing LIFO inventory valuations. The
Company′s effective income tax rate for the year declined to 25.8
percent, compared to 32.5 percent for the year prior, mostly due to the
absence of last year′s $ 158 million charge related to the restructuring
of ADM′s investment in Wilmar International, Ltd.

Oilseeds Processing Operating Profit

Profit in ADM′s Oilseeds Processing segment increased $ 132 million for
the quarter and $ 120 million for the 12 months.

Crushing and origination results increased $ 77 million to $ 218 million
for the quarter. Year-over-year crushing volumes increased in the
quarter, with decreased North American volumes more than offset by
increases in South America and Europe. Good positioning favorably
impacted North American and European soybean and softseed crushing
margins.

Refining, packaging, biodiesel and other results increased $ 58 million
to $ 79 million for the quarter. Recently expanded biodiesel production
capacity at Rondonopolis, Brazil, allowed ADM to capture good margins
and volumes amidst strong demand. Last year′s quarter also included
charges related to the formation of the Stratas Foods packaged-oil joint
venture.

Asia results of $ 62 million for the quarter reflect ADM′s share of
Wilmar International, Ltd. earnings.

Corn Processing Operating Profit

Corn Processing results increased $ 151 million for the quarter and $
537 million for the 12 months.

Sweeteners and starches operating profit decreased $ 30 million from the
prior year to $ 119 million. This decrease reflects lower average
selling prices that were only partially offset by lower net corn costs.
Sales volumes increased due to strong export demand.

Bioproducts profit in the quarter was up significantly from last year′s
loss due to better ethanol and lysine margins.

At present, ADM has begun production at its Cedar Rapids, Iowa, ethanol
dry mill, which should be fully operational by the end of August. And,
in Decatur, Ill., the Company is working through startup issues at its
propylene glycol plant, which should be fully operational by end of the
calendar year.

Agricultural Services Operating Profit

Agricultural Services results increased $ 195 million for the quarter
and decreased $ 326 million for the 12 months.

In the quarter, ADM saw a good global supply of grains and oilseeds and
modestly improving demand, especially from Asia.

Merchandising and handling profit improved significantly due principally
to more favorable risk management results. Earnings from transportation
operations declined on lower barge-freight rates and higher fuel costs.

Other Operating Profit

Results from ADM′s Other business units increased $ 113 million for the
quarter and $ 455 million for the 12 months.

Other processing businesses were up $ 108 million for the quarter,
reflecting improved results of ADM′s cocoa and flour milling operations
and from equity investee Gruma S.A.B. de C.V. Other processing earnings
for the quarter include mark-to-market gains of $ 63 million related to
certain forward sales commitments accounted for as derivatives.

Other financial results in the quarter increased $ 5 million due
primarily to the absence of losses experienced last year in managed fund
investments.

Corporate Results

Corporate results decreased $ 95 million for the quarter and $ 701
million for the 12 months. Rising commodity prices generated a $ 23
million increase in ADM′s LIFO inventory valuation reserves this
quarter, compared to a $ 54 million increase a year ago. For the year,
LIFO inventory valuation reserves decreased $ 42 million, compared to a
$ 517 million decrease last year. The quarter and 12 months include $ 59
million of unrealized loss on interest rate swaps. The 12 months include
higher net interest expense of $ 91 million and debt buyback costs of $
75 million.

New Accounting Standards

Certain amounts in the prior year′s Consolidated Statement of Earnings,
Segment Operating Analysis, Summary of Financial Condition, and Summary
of Cash Flows have been restated, and presentation formats have been
modified to apply the requirements of new accounting standards ASC Topic
810, Consolidation and ASC Topic 470-20, Debt with Conversion and Other
Options. Effective July 1, 2009, the Company adopted this amended
guidance which requires retrospective application to all periods
presented.

Conference Call Information