Archer Daniels Midland 2007 Annual Report Download - page 4

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To the Shareholders and Employees of ADM,
By almost any measure, 2007 was an excellent
year for ADM. We delivered our third consecutive
year of record earnings and achieved our seventh
consecutive year of double digit improvements in
safety. We extended our record of uninterrupted
dividends to 75 years, and exceeded our targets
for costs and returns—two important measures of
shareholder value.
As good as our numbers are—and in a year
marked by unprecedented volatility in commodity
markets, they are quite good—the numbers alone
do not tell the full story of our accomplishments.
For, as we were achieving record results, we were
also strengthening our organizational capacity for
change and building out the long-term value of
our company.
Delivering Results
In 2007, we demonstrated our ability to deliver growth and
returns. Net earnings for the year increased 65% over last
year’s record performance, to a record $2.2 billion dollars,
or $3.30 per share. Special items were significant in the
year-over-year increase, reflecting actions to strategically
align our portfolio. Sales revenues surpassed $44 billion, rising 20% primarily on the strength of commodity pricing and on
additional sales volumes.
We finished the year with a Return on Net Assets of 15.7%, solidly over our 13% objective, and we held costs to below our
Cost per Metric Ton of Production objective of less than $110, achieving a rate of $108.89 for the year.
In a first for ADM, we issued $1.15 billion of convertible debt. This issuance provided cost-effective funds for a significant
buy-back of 15.4 million shares of ADM stock. And we increased our cash dividend payouts, in absolute dollars and in cents
per share.
With thanks, we offer full credit for this excellent performance to the people of ADM. While continuing to respect
and—indeed—relish the traditional strengths of the company, they embraced a new focus, new people and a new set
of expectations and disciplines, all the while maintaining an unwavering commitment to delivering quality and value for
ADM’s customers and shareholders. Their tireless efforts, across the globe, are reflected in the record results they achieved
in all of the major segments of our business.
Growing Opportunity
Last year, as we examined the global landscape to identify future possibilities for our company, we recognized two major
world trends that suggested unprecedented, sustained opportunity: the growing demand for food to feed a growing and more
prosperous world population, and the quest for alternative fuel sources to supply expanding energy needs. We embraced
that opportunity, identifying a longer-term, strategic destination for our company: to be the global leader in BioEnergy while
expanding our premiere position in the agricultural processing chain. With this destination firmly in mind, we identified key
p a g e 2 Archer Daniels Midland Company
Patricia A. Woertz,
Chairman, Chief Executive Officer and President