Archer Daniels Midland Co. (NYSE: ADM) reported financial results for the quarter ended June 30, 2013. The company reported net earnings for the quarter of $223 million, or $0.34 per share, down from $0.43 per share in the same period one year earlier. Adjusted earnings per share1 were $0.46, up from $0.38 in the same period last year. Segment operating profit was $647 million, up 19 percent from the prior year.

“Also, corn results improved amid volatile ethanol industry conditions.”

“The team managed well through this period, as tight U.S. crop supplies reduced volumes,” said ADM Chairman and CEO Patricia Woertz. “Also, corn results improved amid volatile ethanol industry conditions.

“During the quarter, we continued our work to improve the company’s future returns and earnings power over the cycle. Our effort to unlock cash reached $2 billion, with the team reaching this milestone a half-year ahead of schedule. And, in cost, we made solid progress toward our goal of $200 million in additional cost reductions by the end of 2014.

“Looking ahead, we’ll be managing through tight crop supplies until the forecast large but delayed U.S. harvest.”

Second quarter 2013 highlights

Adjusted EPS of 46 cents, up 8 cents

Adjusted EPS increased primarily due to higher segment operating profit.

This quarter’s effective tax rate of 29 percent was below the 30 percent rate during the same period last year.

Oilseeds earnings essentially flat as stronger crushing and origination profits were offset by lower cocoa results

Oilseeds operating profit in the second quarter was $321 million, similar to the same period one year earlier.

Crushing and origination operating profit was $185 million, up $35 million from the year-ago quarter. European crushing results improved significantly year-over-year as delays in the arrival of South American meal contributed to stronger margins. In North America, tighter crop supplies resulted in weaker soy and softseed crush margins. South American operations recovered from the first quarter and generated strong overall results, equivalent to the year-ago quarter.

Refining, packaging, biodiesel and other generated a profit of $93 million for the quarter, up $9 million on stronger European results.

Cocoa and other results decreased $58 million due to lower margins on business contracted in earlier quarters.

Oilseeds results in Asia for the quarter were up $4 million from the same period last year, principally reflecting ADM’s share of the improved results from Wilmar International Limited.

Corn processing results reflect improved ethanol conditions

Corn processing operating profit of $223 million represented an increase of $149 million from the same period one year earlier.

Sweeteners and starches operating profit decreased $9 million to $126 million. Excluding the impact of corn hedge ineffectiveness, sweeteners and starches results improved by $25 million, with overall demand and margins remaining solid.

Bioproducts results increased $158 million to $97 million. Overall ethanol margins were profitable, albeit volatile.

Agricultural services impacted by lower u.s. volumes and weaker international merchandising results

Agricultural Services operating profit was $81 million, down $42 million from the same period one year earlier.

Merchandising and handling earnings declined $16 million to $14 million, due to smaller U.S. origination and export volumes, and lower margins in international merchandising.

Transportation results decreased $14 million to $3 million as lower U.S. export volumes reduced barge freight utilization.

Milling and other results remained steady, excluding Gruma, as the milling business continued to perform well.