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FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended June 30, 1994
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-44
ARCHER-DANIELS-MIDLAND COMPANY
(Exact name of registrant as specified in its charter)
Delaware 41-0129150
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
4666 Faries Parkway Box 1470 Decatur, Illinois 62525
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code217-424-5200
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on
Title of each class which registered
Common Stock, no par value New York Stock Exchange
Chicago Stock Exchange
Stock Exchange of Basle,
Switzerland
Stock Exchange of
Zurich,
Switzerland
Stock Exchange of
Geneva,
Switzerland
Tokyo Stock Exchange
Frankfurt Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No ___
State the aggregate market value of the voting stock held by non-
affiliates of the registrant.
Common Stock, no par value--$7.3 billion
(Based on the closing price of the New York Stock Exchange on
August 22, 1994)
Indicate the number of shares outstanding of each of the
registrant's classes of common stock, as of the latest
practicable date.
Common Stock, no par value--327,306,990 shares
(August 22, 1994)
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the annual shareholders' report for the year ended
June 30, 1994 are incorporated by reference into Parts I, II and
IV.
Portions of the annual proxy statement for the year ended June
30, 1994 are incorporated by reference into Part III.
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PART I
Item 1. BUSINESS
(a) General Development of Business
Archer Daniels Midland Company was incorporated in
Delaware in 1923, successor to the Daniels Linseed
Co. founded in 1902.
During the last five years, the Company has
experienced significant growth, spending
approximately $3.3 billion for construction of new
plants, expansions of existing plants and the
acquisitions of plants and transportation equipment.
There have been no significant dispositions during
this period.
(b) Financial Information About Industry Segments
The Company is in one business segment--procuring,
transporting, storing, processing and merchandising
agricultural commodities and products.
(c) Narrative Description of Business
(i) Principal products produced and principal markets
for and methods of distribution of such products
The Company is engaged in the business of
procuring, transporting, storing, processing and
merchandising agricultural commodities and
products. It is one of the world's largest
processors of oilseeds, corn and wheat. The
Company also processes rice, milo, oats, barley,
peanuts and cane sugar. Other operations include
transporting, merchandising and storing
agricultural commodities and products. These
operations and processes produce products which
have primarily two end uses, either food or feed
ingredients. Each commodity processed is in
itself a feed ingredient as are the by-products
produced during the processing of each commodity.
Production processes of all commodities are
capital intensive and similar in nature. These
processes involve grinding, crushing or milling
with further value added through extraction,
refining and fermenting. Generally, each
commodity can be processed by any of these
methods to generate additional value added
products. All commodities and related processed
products share the same network of commodity
procurement facilities, transportation services
(including rail, barge, truck and ocean vessels)
and storage facilities.
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The geographic areas, customers and marketing
methods are basically the same for all
commodities and their related further processed
products. Feed ingredient products and by-
products are sold to farmers, feed dealers and
livestock producers, all of which can and will
purchase products from across the entire
commodity chain. Food ingredient products are
also sold to one basic group of customers, food
processors. Any single customer may purchase
products produced from all commodities and any
single food or feed product could include
ingredients produced from all commodities we
process.
Oilseed Products
Soybeans, cottonseed, sunflower seeds, canola,
peanuts, flaxseed and corn germ are processed to
provide vegetable oils and meals principally for the
food and feed industries. Crude vegetable oil is
sold as is or is further processed by refining and
hydrogenating into margarine, shortening, salad oils
and other food products. Partially refined oil is
sold for use in chemicals, paints and other
industrial products. Lecithin, an emulsifier
produced in the vegetable oil refining process, is
marketed as a food and feed ingredient.
Oilseed meals supply more than one-half of the high
protein ingredients used in the domestic manufacture
of commercial livestock and poultry feeds. Soybean
meal is further processed into soy flour and grits,
used in both food and industrial products, and into
value-added soy protein products. Textured
vegetable protein (TVP R), a soy protein product
developed by the Company, is sold primarily to the
institutional food market and, through others, to
the food consumer market. The Company also produces
a wide range of other edible soy protein products
including isolated soy protein, soy protein
concentrate, soy-based milk products, soy flours and
vegetable patties (Harvest Burgers R). The Company
produces and markets a wide range of consumer and
institutional health foods based on the Company's
various soy protein products.
Corn Products
The Company is engaged in dry milling and wet milling
corn operations. Products produced for use by the
food and beverage industry include syrup, starch,
glucose, dextrose, crystalline dextrose, high
fructose sweeteners, crystalline fructose and grits.
Corn gluten feed and distillers grains are produced
for use as feed ingredients. Ethyl alcohol is
produced to beverage grade or for industrial use as
ethanol. Ethanol is used to increase octane, and as
an extender and oxygenate in gasoline. Corn germ, a
byproduct of the milling process, is further
processed as an oilseed.
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ITEM 1. BUSINESS--Continued
The Company produces by fermentation, from dextrose,
citric and lactic acids, feed-grade amino acids and
vitamins, lactates, sorbitol, monosodium glutamate,
nematodes and food emulsifiers principally for the
food and feed industries.
Wheat and Other Milled Products
Wheat flour is sold primarily to large bakeries,
durum flour is sold to pasta manufacturers and
bulgur, a gelatinized wheat food, is sold to both
the export and the domestic food markets. Masa corn
flour is sold primarily to specialty food producers
to be used in the production of tortillas, taco
shells and tortilla chips.
The Company mills long, medium and short grain rice
and mills oats into oat bran and oat flour for
institutional and consumer food customers. The
Company also mills milo to produce industrial flour
that is used in the manufacturing of wall board for
the building industry.
Other Products and Services
The Company buys, stores and cleans agricultural
commodities, such as corn, wheat, soybeans, canola,
milo, sunflower seeds, rice, oats and barley, for
resale to other processors worldwide.
The Company produces and distributes formula feeds
and animal health and nutrition products to the
livestock, dairy and poultry industries. Many of
the feed ingredients and health and nutrition
products can be, and in many cases are, produced in
our other commodity processing operations.
The Company produces bakery products and mixes which
are sold to the baking industry.
The Company produces spaghetti, noodles, macaroni,
and other consumer food products. The Company also
produces lettuce, other fresh vegetables and herbs
in its hydroponic greenhouse.
Malt products are produced for use by the food and
beverage industries.
The Company produces from cane sugar granulated and
liquid refined sugars principally for the food and
beverage industries.
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Item 1. BUSINESS--Continued
Hickory Point Bank and Trust Co. furnishes public
banking services, except commercial loans, as well
as cash management and securities safekeeping
services for the Company.
Agrinational Insurance Company and Agrinational Ltd.,
Vermont and Cayman Island subsidiaries,
respectively, act as direct insurers and reinsurers
of a portion of the Company's domestic and foreign
property and casualty insurance risks.
Alfred C. Toepfer International (Germany) and
affiliates, of which the Company has a 50% interest,
is one of the world's largest, most respected
trading companies specializing in processed
agricultural products. Toepfer has thirty-nine
sales offices worldwide. Compagnie Industrielle et
Financiere des Produits Amylaces SA (Luxembourg) and
affiliates, of which the Company has a 41.5%
interest, owns European agricultural processing
plants that are primarily engaged in corn wet
milling and wheat starch production.
The Company, through its partnership with Gold Kist,
Inc. and Alimenta Processing Corporation d/b/a
Golden Peanut Company, is a major supplier of
peanuts to both the domestic and export markets.
These peanuts are used in peanut butter, snacks,
cereals and many other foods.
The percentage of net sales and other operating
income by classes of products and services for the
last three fiscal years were as follows:
1994 1993 1992
Oilseed products 50% 50% 51%
Corn products 26 28 29
Wheat and other
milled products 13 13 10
Other products and services 11 9 10
100% 100% 100%
Methods of Distribution
Since the Company's customers are principally other
manufacturers and processors, its products are
distributed mainly in bulk from processing plants or
storage facilities directly to the customers'
facilities. The Company owns a large number of
trucks and trailers and owns or leases large numbers
of railroad tank cars and hopper cars to augment
those provided by the railroads. The Company uses
the inland waterway system and functions as a
contract carrier of commodities for its own
operations as well as for other companies.
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Item 1. BUSINESS--continued
The Company owns, leases or manages under operating
agreements approximately 1,900 river barges and 25
line-haul towboats.
(ii) Status of new products
The Company continues to expand its bioproducts.
The Company is currently producing, from
dextrose, the feed-grade amino acids lysine and
threonine, and expects to be producing
tryptophan during the coming year. The Company
has entered the vitamin market with the
production of riboflavin and biotin, and is
currently expanding production facilities to
produce vitamins C and E. The Company is also
producing, from dextrose fermentation, citric
acid, monosodium glutamate (MSG) and lactic
acid and is scheduled to begin to produce, in
the next year, the food additive, xanthan gum.
(iii) Source and availability of raw materials
Substantially all of the Company's raw materials
are agricultural commodities. In any single
year, the availability and price of these
commodities are subject to wide fluctuations
due to unpredictable factors such as weather,
plantings, government (domestic and foreign)
farm programs and policies, changes in global
demand created by population growth and higher
standards of living and worldwide production of
similar and competitive crops. The Company
follows a policy of hedging commodity
transactions, including certain anticipated
production requirements, to minimize price risk
due to market fluctuations and risk of crop
failure.
(iv) Patents, trademarks and licenses
The Company owns several valuable patents,
trademarks and licenses but does not consider
its business dependent upon any single or group
of patents, trademarks and licenses.
(v) Extent to which business is seasonal
Since the Company is so widely diversified in
global agribusiness markets, there are no
material seasonal fluctuations in the
manufacture, sale and distribution of its
products and services. There is a degree of
seasonality in the growing season and
procurement of the Company's principal raw
materials, oilseeds, wheat, corn and other
grains. However, the actual physical movement
of the millions of bushels of these crops
through the Company's storage and processing
facilities is reasonably constant throughout
the year. The worldwide need for food is not
seasonal and is ever expanding as is the
world's population.
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Item 1. BUSINESS--Continued
(vi) Working capital items
Price variations and availability of grain at
harvest often cause wide fluctuations in the
Company's inventories and short-term borrowings.
(vii) Dependence on single customer
No material part of the Company's business is
dependent upon a single customer or very few
customers.
(viii) Amount of backlog
Because of the nature of the Company's business,
the backlog of orders at year end is not a
significant indication of the Company's activity
for the current or upcoming year.
(ix) Business subject to renegotiation
The Company has no business with the government
that is subject to renegotiation.
(x) Competitive conditions
Markets for the Company's products are highly
competitive and sensitive to product
substitution. No single company competes with
the Company in all of its markets; however, a
number of large companies compete in one or more
markets. Major competitors in one or more
markets include, but are not limited to,
Cargill, Inc., ConAgra, Inc., CPC International,
Eridania Beghin-Say and Tate & Lyle.
(xi) Research and development expenditures
Practically all of the Company's technical
efforts and expenditures are concerned with food
and feed ingredient products. Special efforts
are being made to find improvements in food
technology to alleviate the protein malnutrition
throughout the world, utilizing the three
largest United States crops-wheat, soybeans and
corn.
The need to successfully market new or improved
food and feed ingredients developed in the
Company's research laboratories led to the
concept of technical support. The Company is
staffed with technical representatives who work
closely with customers and potential customers
on the development of food and feed products
which incorporate Company produced ingredients.
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Item 1. BUSINESS--Continued
These technical representatives are an adjunct to
both the research and sales functions.
The Company maintains a research laboratory in
Decatur, Illinois where product and process
development activities are conducted. Enzyme
development and production are an important part
of these activities. Protein research is
conducted at facilities in Decatur where meat
and dairy pilot plants support application
research. Research to support sales and product
development for bakery products is done at a
laboratory in Olathe, Kansas. Additional
research activities are conducted at the
Decatur, Indiana feed research facility and at
the British Arkady plant in Manchester, England.
The amount spent during the three years ended
June 30, 1994, 1993 and 1992 for such technical
efforts were approximately $20.1, $14.8, and
$14.6 million, respectively. In addition, the
Company maintains separate quality control
departments which are supervised by research
personnel.
(xii) Material effects of capital expenditures for
environmental protection
During 1994, $22 million was spent for equipment,
facilities and programs for pollution control
and compliance with the requirements of various
environmental agencies.
There have been no material effects upon the
earnings and competitive position of the Company
resulting from compliance with federal, state
and local laws or regulations enacted or adopted
relating to the protection of the environment.
The Company expects that expenditures for
environmental facilities and programs will
continue at approximately the present rate with
no unusual amounts anticipated for the next two
years.
(xiii) Number of employees
The number of persons employed by the Company was
16,013 at June 30, 1994.
Item 1. BUSINESS--Continued
(d) Financial Information About Foreign and Domestic
Operations and Export Sales
The Company's foreign operations are principally in
developed countries and do not entail any undue or
unusual business risks. Geographic financial
information is set forth in Note 9 to the audited
financial statements included in the Company's 1994
Annual Report to Shareholders.
Export sales by classes of products for the last
three fiscal years were as follows:
1994 1993 1992
Oilseed products 5% 5% 5%
Corn products 6% 6 7
Wheat and other milled
products 1 2 1
Other products and services - 1 1
12% 14% 14%
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Item 1. BUSINESS--Continued
(e) Executive Officers
Name Title Age
Dwayne O. Andreas Chairman of the Board of 76
Directors from 1972.
Chief Executive Officer
James R. Randall President from 1975. 69
G. Allen Andreas Vice President from 1988. 51
Counsel to the Executive
Committee from September 1994
Michael D. Andreas Vice Chairman of the Board 45
of Directors from October 1992.
Executive Vice President
from 1988.
Martin L. Andreas Senior Vice President from 1988.
55
Executive Assistant to the
Chief Executive.
Charles P. Archer Treasurer from October 1992. 38
Assistant Treasurer from 1988.
Charles T. Bayless Group Vice President from
January 1993. Vice President 59
from 1992. President of ADM
Processing Division since 1980.
Dale F. Benson Vice President from 1969. 68
Howard G. Buffett Vice President and Assistant 39
to the Chairman from 1992.
Chairman of Douglas County,
Nebraska Board of Commissioners
from 1988 to 1992. President of
Buffett Farms Inc. since 1984.
Howard E. Buoy Group Vice President from 67
January 1993. Vice President
of ADM Processing Division
from 1979.
William H. Camp Vice President from April 1993.45
Vice President of ADM Processing
Division from 1990 to 1993.
Various merchandising positions
from 1988 to 1990.
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Item 1. BUSINESS--Continued
Larry H. Cunningham Vice President and President 50
of Protein Specialties
Division since July 1993.
Formerly President of
A. E. Staley Manufacturing Co.
Thomas A. Duffield Vice President from 1975. 69
Edward A. Harjehausen Vice President from October
43
1992. Vice President of
ADM Corn Processing Division
from 1988.
Burnell D Kraft Group Vice President from 62
January 1993. Vice President
from 1984. President of
ADM/Growmark, Collingwood
Grain and Tabor Grain Co.
subsidiaries.
Paul L. Krug, Jr. Vice President from 1991 and 50
President of ADM Investor
Services. Formerly a Vice
President of Continental Grain.
Raymond V. Preiksaitis Vice President - Management
41
Information Systems from 1988.
John G. Reed Vice President from 1982. 64
Chief Executive-Europe from
September 1994
Richard P. Reising Vice President, Secretary and 50
General Counsel from 1991.
Secretary and Assistant General
Counsel since 1988.
John D. Rice Vice President from April 1993.40
Vice President of ADM Processing
Division from 1992. Various
merchandising positions from
1988 to 1992.
Douglas J. Schmalz Vice President, Controller and48
Chief Financial Officer from
1986.
Item 1. BUSINESS--Continued
Mark E. Whitacre Vice President from October 37
1992. President of ADM Bio-
products Division from 1989.
Terrance S. Wilson Group Vice President from 56
January 1993. Officer of
ADM Corn Processing Division
since 1988.
Officers of the registrant are elected by the Board of
Directors for terms of one year and until their
successors are duly elected and qualified.
Michael D. Andreas is the son of Dwayne O. Andreas. G.
Allen Andreas and Martin L. Andreas are nephews of
Dwayne O. Andreas. Lowell W. Andreas and Dwayne O.
Andreas, directors of the registrant are brothers.
Charles P. Archer is the son of S. M. Archer, Jr., a
director of the registrant.
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Item 2. PROPERTIES
(a) Processing Facilities
The Company has one hundred sixty-three processing plants
in the United States of which one hundred fifty-six are
owned and the balance are leased. The Company also owns
or has a 50% or greater ownership interest in fifty-four
foreign processing plants. The Company's operations are
such that most products are efficiently processed near
the source of raw materials. Consequently, the Company
has many plants located strategically in grain producing
areas. The annual volume processed will vary depending
upon availability of raw material and demand for the
finished products.
The Company operates thirty-five domestic and seven
foreign oilseed crushing plants with a daily processing
capacity of approximately 73,000 tons. The domestic
plants are located in Alabama, Arkansas, Georgia,
Illinois, Indiana, Iowa, Kansas, Louisiana, Minnesota,
Missouri, Mississippi, Nebraska, North Dakota, Ohio,
South Carolina, Tennessee and Texas. The foreign plants
are located in Canada, England, Germany and the
Netherlands.
The Company operates four wet corn milling and two dry
corn milling plants with a daily grind capacity of
approximately 1,590,000 bushels. These plants and other
related properties, including corn germ extraction and
corn gluten pellet plants, are located in Illinois,
Iowa, New York, North Dakota and Texas. The Company
also has interests, through joint ventures, in corn
milling plants in Mexico, Bulgaria, Hungary and
Slovakia.
The Company operates twenty-nine domestic wheat and
durum flour mills, a domestic bulgur plant, six Canadian
flour mills and one Mexican flour mill with a total
daily capacity of approximately 355,000 cwt. of flour.
The Company also operates six corn flour mills, three
rice mills, two milo mills, two pasta plants and four
starch and gluten plants. These plants and other related
properties are strategically located across North
America in California, Illinois, Indiana, Iowa, Kansas,
Kentucky, Louisiana, Minnesota, Missouri, Nebraska, New
York, North Carolina, North Dakota, Oklahoma, Oregon,
Pennsylvania, Tennessee, Texas, Washington, Wisconsin,
Canada and Mexico.
The Company operates ten domestic oilseed refineries in
Illinois, Indiana, Iowa, Georgia, Nebraska, Tennessee
and Texas as well as five foreign refineries in Canada,
Germany and the Netherlands. The Company produces
packaged oils in Illinois, California and Germany and
soy protein specialty products in Illinois, England, and
the Netherlands. Lecithin products are produced in
Illinois, Iowa, Nebraska, Germany and the Netherlands.
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The Company produces feed and food additives at seven
bioproduct plants located in Illinois, North Carolina
and Ireland. The Company also operates formula feed,
animal health and nutrition and pet food plants in
Arkansas, Georgia, Illinois, Iowa, Kansas, Kentucky,
Michigan, Missouri, Nebraska, North Carolina, Ohio,
Pennsylvania, South Carolina, Tennessee, Texas,
Washington, Wisconsin, Vermont, England and Ireland.
The Company operates five North American barley malting
plants located in Illinois, Minnesota, Wisconsin and
Canada plus a cane sugar refinery in Louisiana.
The Company operates various other food ingredient
plants in Iowa, Kansas, Washington, England, France,
Germany, Italy, Portugal and Spain.
(b) Procurement Facilities
The Company operates one hundred sixty-nine domestic
terminal, country and river elevators covering the
Midwest, West and South Central states, including one
hundred-thirteen country elevators and fifty-six
terminal and river loading facilities including three
grain export elevators in Louisiana. Elevators are
located in Arkansas, Colorado, Georgia, Illinois,
Indiana, Iowa, Kansas, Minnesota, Missouri, Montana,
Nebraska, North Carolina, Oklahoma, South Carolina,
Tennessee and Texas. Domestic grain terminals,
elevators and processing plants have an aggregate
storage capacity of approximately 355,000,000 bushels.
The Company also operates ten foreign grain elevators in
Canada, Ireland and Germany. Thirteen cotton gins are
located in Texas and serve the cottonseed crushing
plants in that area.
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Item 3. LEGAL PROCEEDINGS
In 1993, the State of Illinois Environmental Protection
Agency brought administrative enforcement proceedings
arising out of the Company's failure to obtain permits
for certain pollution control equipment at certain of
the Company's processing facilities in Illinois. The
Company believes it has meritorious defenses. While the
Company cannot reasonably estimate the amount of the
sanctions which may be imposed in these matters, in
management's opinion, they will not, either individually
or in the aggregate, have a material adverse effect on
the Company's financial condition or results of
operations.
The Company is involved in approximately 20
administrative and judicial proceedings in which it has
been identified as a potentially responsible party (PRP)
under the federal Superfund law and its state analogs
for the study and clean-up of sites contaminated by
material discharged into the environment. In all of
these matters, there are numerous PRP's. Due to various
factors such as the required level of remediation and
participation in the clean-up effort by others, the
Company's future clean-up at these sites cannot be
reasonably estimated. However, in management's opinion,
these proceedings will not, either individually or in
the aggregate, have a material adverse effect on the
Company's financial condition or results of operations.
The Company from time to time, in the ordinary course of
business, is named as a defendant in various lawsuits.
In management's opinion, the gross liability from
litigation, including environmental exposure, with or
without insurance recoveries is not considered to be
material to the Company's financial condition or results
of operations.
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Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
PART II
Item 5.MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS
Common Stock Market Prices and Dividends on page 37 of
the annual shareholders' report for the year ended June
30, 1994 is incorporated herein by reference.
Item 6. SELECTED FINANCIAL DATA
Years 1990 through 1994 included in the Ten-Year Summary
of Operating, Financial and Other Data on pages 38 and
39 of the annual shareholders' report for the year ended
June 30, 1994 is incorporated herein by reference.
Item 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Management's Discussion of Operations and Financial
Condition on pages 24 and 25 of the annual shareholders'
report for the year ended June 30, 1994 is incorporated
herein by reference.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The following financial statements and supplementary data
included in the annual shareholders' report for the year
ended June 30, 1994 are incorporated herein by
reference:
Page(s) in the Annual
Shareholders' Report
Consolidated Financial Statements,
Summary Significant Accounting Policies
and Notes to Consolidated Financial
Statements Pages 26 through
34
Report of Independent Auditors Page 35
Quarterly Financial Data (Unaudited) Page 36
Item 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
None.
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PART III
The following items of Part III, included in the
definitive proxy statement for 1994, are incorporated
herein by reference:
Page(s) in the
Definitive Proxy Statement
Item 10. DIRECTORS AND
EXECUTIVE OFFICERS OF THE Pages 2 through 6
REGISTRANT Page 13
Information with respect to executive officers
is included in Item 1 (e) of this report.
Item 11. EXECUTIVE
COMPENSATION Pages 7 through
12
Item 12. SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL Page 2
OWNERS AND MANAGEMENT
Item 13. CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS Page 12
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PART IV
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
FORM 8-K
(a)(1)The following consolidated financial statements
and other financial data of the registrant and
its subsidiaries, included in the annual report
of the registrant to its shareholders for the
year ended June 30, 1994, are incorporated by
reference in Item 8, and are also incorporated
herein by reference:
Consolidated balance sheets--June 30, 1994 and
1993
Consolidated statements of earnings--Years ended
June 30, 1994, 1993 and 1992
Consolidated statements of shareholders' equity--
Years ended June 30, 1994, 1993 and 1992
Consolidated statements of cash flows--Years ended
June 30, 1994, 1993 and 1992
Notes to consolidated financial statements--June
30,
1994
Quarterly Financial Data (Unaudited)
(a)(2)The following consolidated financial schedules of
the registrant and its subsidiaries are included
in this report:
Schedule I--Marketable securities--other
investments ...................................
23
Schedule V--Property, plant and equipment ......
24
Schedule VI--Accumulated depreciation, depletion
and amortization of property, plant and
equipment .....................................
26
Schedule IX--Short-term borrowings
.............. 27
Schedule X--Supplementary income statement
information
.................................... 28
All other schedules are not applicable and
therefore not included in this report.
Financial statements of affiliates accounted for
by the equity method have been omitted because
they do not, considered individually, constitute
significant subsidiaries.
16
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Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
FORM 8-K
--Continued
(a)(3) LIST OF EXHIBITS
(3) Composite Certificate of Incorporation and
Bylaws filed on November 7, 1986 as Exhibits
3(a) and 3(b), respectively, to Post Effective
Amendment No. 1 to Registration Statement on
Form S-3, Registration No. 33-6721, are
incorporated herein by reference.
(4) Instruments defining the rights of security
holders, including:
(i) Indenture dated May 15, 1981, between
the registrant and Morgan Guaranty Trust
Company of New York, as Trustee
(incorporated by reference to Exhibit
4(b) to Amendment No. 1 to Registration
Statement No. 2-71862), relating to the
$250,000,000 - 7% Debentures due May 15,
2011;
(ii) Indenture dated May 1, 1982, between the
registrant and Morgan Guaranty Trust
Company of New York, as Trustee
(incorporated by reference to Exhibit
4(c) to registration Statement No. 2-
77368), relating to the $400,000,000
Zero Coupon Debentures due May 1, 2002;
(iii)Indenture dated as of March 1, 1984
between the registrant and Chemical
Bank, as Trustee (incorporated by
reference to Exhibit 4 to the
registrant's Current Report on Form 8-K
dated August 3, 1984 (File No. 1-44)),
as supplemented by the Supplemental
Indenture dated as of January 9, 1986,
between the registrant and Chemical
Bank, as Trustee (incorporated by
reference to Exhibit 4 to the
registrant's Current Report on Form 8-K
dated January 9, 1986 (File No. 1-44)),
relating to the $100,000,000 - 10 1/4%
Debentures due January 15, 2006;
(iv) Indenture dated June 1, 1986 between the
registrant and Chemical Bank, (as
successor to Manufacturers Hanover Trust
Company), as Trustee (incorporated by
reference to Exhibit 4(a) to
Registration Statement No. 33-6721), and
Supplemental Indenture dated as of
August 1, 1989 between the registrant
and Chemical Bank (as successor to
Manufacturers Hanover Trust Company), as
Trustee (incorporated by reference to
Exhibit 4(c) to Post-Effective Amendment
No. 3 to Registration Statement No. 33-
6721), relating to the $300,000,000 -
8 7/8%
17
PAGE 18
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND
REPORTS ON FORM 8-K
--Continued
Debentures due April 15, 2011, the
$300,000,000 - 8 3/8% Debentures due
April 15, 2017, the $300,000,000 - 8
1/8% Debentures due June 1, 2012, the
$250,000,000 - 6 1/4% Notes due May
15, 2003, and the $250,000,000 - 7
1/8% Debentures due March 1, 2013.
Copies of constituent instruments
defining rights of holders of long-term
debt of the Company and Subsidiaries,
other than the Indentures specified
herein, are not filed herewith, pursuant
to Instruction (b)(4) (iii)(A) to Item
601 of Regulation S-K, because the total
amount of securities authorized under
any such instrument does not exceed 10%
of the total assets of the Company and
Subsidiaries on a consolidated basis.
The registrant hereby agrees that it
will, upon request by the Commission,
furnish to the Commission a copy of each
such instrument.
(10)Material Contracts--Copies of the Company's
stock option plans and its savings and
investment plans, pursuant to Instruction
(10)(iii)(A) to Item 601 of Regulation S-K, are
incorporated herein by reference as follows:
(i) Registration Statement No. 2-91811 on Form
S-8 dated June 22, 1984 (definitive
Prospectus dated July 16, 1984) relating
to the Archer Daniels Midland 1982
Incentive Stock Option Plan.
(ii)Registration Statement No. 33-27331 on Form
S-8 dated February 27, 1989 relating to
the Archer Daniels Midland Company Savings
and Investment Plan for Hourly Employees.
(iii) Registration Statement No. 33-49409
on Form S-8 dated March 15, 1993 relating
to the Archer Daniels Midland 1991
Incentive Stock Option Plan and Archer
Daniels Midland Company Savings and
Investment Plan.
(13) Annual report to security holders
(21) Subsidiaries of the registrant
18
PAGE 19
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND
REPORTS ON FORM 8-K
--Continued
(23) Consent of independent auditors
(24) Powers of attorney
(27) Financial Data Schedule
(b) Reports on Form 8-K
A Form 8-K was not filed during the quarter ended
June 30, 1994.
19
PAGE 20
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: September 27, 1994
ARCHER-DANIELS-MIDLAND
COMPANY
R. P. Reising
Vice President, Secretary
and General Counsel
D. J. Schmalz
Vice President, Controller
and
Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below on September 27, 1994,
by the following persons on behalf of the Registrant and in
the capacities indicated.
D. O. Andreas*, Chairman of the Board, Chief Executive and
Director
(Principal Executive Officer)
L. W. Andreas*, Director
M. D. Andreas*, Director
M. L. Andreas*, Director
S. M. Archer, Jr.*, Director
Ralph Bruce*, Director
H. G. Buffett*, Director
J. H. Daniels*, Director
R. A. Goldberg*, Director
H. D. Hale*, Director
F. R. Johnson*, Director
J. R. Randall*, Director
Mrs. N. A. Rockefeller*, Director
R. S. Strauss*, Director
J. K. Vanier*, Director
O. G. Webb*, Director
R. P. Reising
Attorney-in-Fact
*Powers of Attorney authorizing R. L. Erickson, R. P. Reising,
D. J. Schmalz and D. J. Smith and each of them, to sign the Form
10-K on behalf of the above-named officers and directors of the
Company are being filed with the
and Exchange Commission.
20
PAGE 21
<TABLE>
<CAPTION>
SCHEDULE I--MARKETABLE SECURITIES--OTHER INVESTMENTS
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
June 30, 1994
COL. A COL. B COL. C COL. D COL. E
Amount at Which
Number of Each Portfolio
Shares or Market of Equity Security
Units--Principal Value of Issues and Each
Amount of Each Issue Other Security
Name of Issuer Bonds and Cost of at Balance Issue Carried in
and Title of Each Issue Notes Each Issue Sheet Date the Balance Sheet
(In thousands)
<S> <C>
<C> <C> <C>
Marketable securities consist of:
United States government obligations$1,258,024 $1,245,697 $1,244,524 $1,245,697
Marketable equity securities
ARCO Chemical Company 4,869,500 188,558 220,954 188,558
Other 544,832 586,451 544,832
Other investments 199,542 202,267 199,542
_________ _________ _________
$2,178,629 $2,254,196 $2,178,629
========= ========= =========
Marketable securities are classified
in the balance sheet as follows:
Cash and cash equivalents $ 268,497
Marketable securities 1,019,059
Long-term marketable securities 891,073
_________
$2,178,629
=========
</TABLE>
21
PAGE 22
<TABLE>
<CAPTION>
SCHEDULE V--PROPERTY, PLANT AND EQUIPMENT
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
COL. A COL. B COL. C COL. D COL. E COL. F
Balance at Additions Other Changes Add - Balance at
Classification Beginning of Period at Cost (1) Retirements(Deduct)-Describe (2)End of Period
Year Ended June 30, 1994 (In
Thousands)
<S> <C> <C>
<C> <C> <C>
Land $ 94,143 $ 4,691 $ 1,951 $ 4,971 $ 101,854
Buildings 907,625 107,654 10,593 25,131 1,029,817
Machinery and equipment 4,622,590 353,163 45,770 143,648 5,073,631
Construction in progress 377,317 66,013 - 12,399 455,729
_________ _______ ______ _______ _________
TOTAL $6,001,675 $531,521 $58,314 $186,149 $6,661,031
========= ======= ====== ======= =========
Year Ended June 30, 1993
Land $ 89,141 $ 7,861 $ 96 $ (2,763) $ 94,143
Buildings 843,437 58,180 3,057 9,065 907,625
Machinery and equipment 4,319,936 322,487 32,875 13,042 4,622,590
Construction in progress 295,537 19,084 - 62,696 377,317
_________ _______ ______ _______ _________
TOTAL $5,548,051 $407,612 $36,028 $ 82,040 $6,001,675
========= ======= ====== ======= =========
Year Ended June 30, 1992
Land $ 74,991 $ 5,782 $ 117 $ 8,485 $ 89,141
Buildings 700,565 98,557 4,133 48,448 843,437
Machinery and equipment 3,669,515 490,171 50,395 210,645 4,319,936
Construction in progress 386,858 (109,483) - 18,162 295,537
______ _______ _________
TOTAL $4,831,929 $485,027 $54,645 $285,740 $5,548,051
========= ======= ====== ======= =========
<FN>
See notes on following page.
</TABLE>
22
PAGE 23
NOTES TO SCHEDULE V--PROPERTY, PLANT AND EQUIPMENT
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
June 30, 1994
(1) Additions consist principally of:
1994--Bioproduct facility and expansions at Decatur,
Illinois, and Southport, North Carolina. Corn
processing expansions at Cedar Rapids and Clinton,
Iowa, Decatur and Peoria, Illinois and Walhalla,
North Dakota. Flour milling facility at Beech Grove,
Indiana. Rice processing expansion at Weiner,
Arkansas. Transportation equipment consisting
primarily of railroad cars.
1993--Bioproduct facility and expansions at Decatur,
Illinois, Southport, North Carolina and Ringaskiddy,
Ireland. Corn processing expansions at Cedar Rapids
and Clinton, Iowa and Decatur and Peoria, Illinois.
Flour milling facility at Beech Grove, Indiana.
Transportation equipment consisting primarily of
railroad cars and barges.
1992--Bioproduct facility and expansion, antibiotic plant,
expansions in corn processing, sorbitol and soy
protein isolate at Decatur, Illinois. Soy protein
concentrate plant, second gas turbine system and oil
refinery at Europoort, Netherlands. Corn processing
and cogeneration expansions at Cedar Rapids, Iowa.
Citric acid expansion and cogeneration plant at
Southport, North Carolina. Corn processing expansion
and oil refinery at Clinton, Iowa. Softseed
extraction plant at Erith, England. Cogeneration
facility at Spyck, Germany. Oil refinery at
Frankfort, Indiana. Transportation equipment
consisting primarily of railroad cars.
(2)Other changes relate to assets of acquired companies and
changes due to foreign currency translation.
(3)The annual provisions for depreciation have been computed
principally in accordance with the following ranges of asset
lives:
Buildings 10 to 50 years
Machinery and equipment 3 to 20 years
23
PAGE 24
<TABLE>
<CAPTION>
SCHEDULE VI--ACCUMULATED DEPRECIATION, DEPLETION AND
AMORTIZATION
OF PROPERTY, PLANT AND EQUIPMENT
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
COL. A COL. B COL. C COL. D COL. E COL. F
Balance at Additions Other Changes Balance at
Beginning Charged to Costs Add (Deduct) End of
Description of Period and Expenses Retirements Describe (1) Period
(In thousands)
<S> <C> <C>
<C> <C> <C>
Year ended June 30, 1994:
Buildings $ 358,330 $ 42,547 $ 3,826 $ 3,827 $ 400,878
Machinery and equipment 2,428,511 312,472 37,330 17,925 2,721,578
_________ _______ ______ _______ _________
TOTAL $2,786,841 $355,019 $41,156 $21,752 $3,122,456
========= ======= ====== ======= =========
Year ended June 30, 1993:
Buildings $ 319,341 $ 39,013 $ 1,370 $ 1,346 $ 358,330
Machinery and equipment 2,168,614 290,092 21,446 (8,749) 2,428,511
_________ _______ ______ _______ _________
TOTAL $2,487,955 $329,105 $22,816 $ (7,403) $2,786,841
========= ======= ====== ======= =========
Year ended June 30, 1992:
Buildings $ 287,249 $ 33,104 $ 2,499 $ 1,487 $ 319,341
Machinery and equipment 1,849,055 261,181 41,894 100,272 2,168,614
_________ _______ ______ _______ _________
TOTAL $2,136,304 $294,285 $44,393 $101,759 $2,487,955
========= ======= ====== ======= =========
<FN>
(1) Other changes relate to accumulated depreciation of acquired
companies and changes due to foreign currency translation.
</TABLE>
24
PAGE 25
<TABLE>
<CAPTION>
SCHEDULE IX--SHORT-TERM BORROWINGS
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
COL. A COL. B COL. C COL. D. COL. E COL.
F
Maximum Average Weighted
Weighted Amount Amount Average
Average Outstanding Outstanding Interest Rate
Category of Aggregate Balance at Interest During the During the During the
Short-Term Borrowings End of Period Rate Period (1) Period (2) Period (3)
<S> <C> <C>
<C> <C>
Year ended June 30, 1994:
Commercial paper holders None - $181,500,000 $29,381,000 3.32%
Banks None - 72,275,000 55,857,000 3.85%
Other financial institutions None - -0- -0- - %
Year ended June 30, 1993:
Commercial paper holders None - $135,000,000 $13,070,000 3.24%
Banks None - 69,700,000 54,769,000 3.87%
Other financial institutions None - -0- -0- - %
Year ended June 30, 1992:
Commercial paper holders None - $140,000,000 $ 7,432,000 4.36%
Banks None - 50,000,000 60,372,000 5.54%
Other financial institutions None - -0- -0- - %
<FN>
(1) Represents maximum aggregate short-term borrowings
outstanding during the period without regard to category.
(2) The average amount outstanding during the period was
computed by dividing the total daily outstanding principal
balances by 365.
(3) The weighted average interest rate during the period was
computed by dividing the actual short-term interest expense
by average short-term debt outstanding.
</TABLE>
25
PAGE 26
<TABLE>
<CAPTION>
SCHEDULE X--SUPPLEMENTARY INCOME STATEMENT INFORMATION
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
COL. A COL. B
Charged to Costs
Item and Expenses
Year Ended June 30
1994 1993 1992
________ ________
________
(In thousands)
<S> <C> <C>
<C>
Maintenance and repairs $299,519 $273,572 $251,820
Amounts for other items are not presented as such amounts are
each less than 1% of total sales and other operating income.
</TABLE>
26
PAGE 1
EXHIBIT 24--POWERS OF ATTORNEY
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
Director, Chairman of the Board and Chief Executive (Principal
Executive Officer) of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such Chairman of the Board, Chief
Executive and Director of said Company to the Form 10-K for the
fiscal year ending June 30, 1994, and all amendments thereto, to
be filed by said Company with the Securities and Exchange
Commission, Washington, D.C., and to file the same, with all
exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of
them, full power and authority to do and perform any and all
acts necessary or incidental to the performance and execution of
the powers therein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 21st day of September, 1994.
D. O. ANDREAS
1
PAGE 2
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney of Director
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
director of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such director of said Company to the Form
10-K for the fiscal year ending June 30, 1994, and all
amendments thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, D.C., and to
file the same, with all exhibits thereto and other supporting
documents, with said Commission, granting unto said attorneys-in-
fact, and each of them, full power and authority to do and
perform any and all acts necessary or incidental to the
performance and execution of the powers therein expressly
granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 22nd day of September, 1994.
L. W. ANDREAS
2
PAGE 3
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney of Director
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
director of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such director of said Company to the Form
10-K for the fiscal year ending June 30, 1994, and all
amendments thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, D.C., and to
file the same, with all exhibits thereto and other supporting
documents, with said Commission, granting unto said attorneys-in-
fact, and each of them, full power and authority to do and
perform any and all acts necessary or incidental to the
performance and execution of the powers therein expressly
granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 21st day of September, 1994.
M. D. ANDREAS
3
PAGE 4
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney of Director
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
director of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such director of said Company to the Form
10-K for the fiscal year ending June 30, 1994, and all
amendments thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, D.C., and to
file the same, with all exhibits thereto and other supporting
documents, with said Commission, granting unto said attorneys-in-
fact, and each of them, full power and authority to do and
perform any and all acts necessary or incidental to the
performance and execution of the powers therein expressly
granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 23rd day of September, 1994.
Shreve M. Archer, Jr.
4
PAGE 5
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney of Director
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
director of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such director of said Company to the Form
10-K for the fiscal year ending June 30, 1994, and all
amendments thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, D.C., and to
file the same, with all exhibits thereto and other supporting
documents, with said Commission, granting unto said attorneys-in-
fact, and each of them, full power and authority to do and
perform any and all acts necessary or incidental to the
performance and execution of the powers therein expressly
granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 22nd day of September, 1994.
Ralph Bruce
5
PAGE 6
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney of Director
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
director of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such director of said Company to the Form
10-K for the fiscal year ending June 30, 1994, and all
amendments thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, D.C., and to
file the same, with all exhibits thereto and other supporting
documents, with said Commission, granting unto said attorneys-in-
fact, and each of them, full power and authority to do and
perform any and all acts necessary or incidental to the
performance and execution of the powers therein expressly
granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 21st day of September, 1994.
Howard Buffett
6
PAGE 7
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney of Director
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
director of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such director of said Company to the Form
10-K for the fiscal year ending June 30, 1994, and all
amendments thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, D.C., and to
file the same, with all exhibits thereto and other supporting
documents, with said Commission, granting unto said attorneys-in-
fact, and each of them, full power and authority to do and
perform any and all acts necessary or incidental to the
performance and execution of the powers therein expressly
granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 22nd day of September, 1994.
John H. Daniels
7
PAGE 8
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney of Director
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
director of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such director of said Company to the Form
10-K for the fiscal year ending June 30, 1994, and all
amendments thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, D.C., and to
file the same, with all exhibits thereto and other supporting
documents, with said Commission, granting unto said attorneys-in-
fact, and each of them, full power and authority to do and
perform any and all acts necessary or incidental to the
performance and execution of the powers therein expressly
granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 26 day of September, 1994.
Ray A. Goldberg
8
PAGE 9
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney of Director
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
director of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such director of said Company to the Form
10-K for the fiscal year ending June 30, 1994, and all
amendments thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, D.C., and to
file the same, with all exhibits thereto and other supporting
documents, with said Commission, granting unto said attorneys-in-
fact, and each of them, full power and authority to do and
perform any and all acts necessary or incidental to the
performance and execution of the powers therein expressly
granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 22nd day of September, 1994.
H. D. Hale
9
PAGE 10
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney of Director
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
director of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such director of said Company to the Form
10-K for the fiscal year ending June 30, 1994, and all
amendments thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, D.C., and to
file the same, with all exhibits thereto and other supporting
documents, with said Commission, granting unto said attorneys-in-
fact, and each of them, full power and authority to do and
perform any and all acts necessary or incidental to the
performance and execution of the powers therein expressly
granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 22nd day of September, 1994.
F. Ross Johnson
10
PAGE 11
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney of Director
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
director of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such director of said Company to the Form
10-K for the fiscal year ending June 30, 1994, and all
amendments thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, D.C., and to
file the same, with all exhibits thereto and other supporting
documents, with said Commission, granting unto said attorneys-in-
fact, and each of them, full power and authority to do and
perform any and all acts necessary or incidental to the
performance and execution of the powers therein expressly
granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 21st day of September, 1994.
J. R. Randall
11
PAGE 12
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney of Director
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
director of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such director of said Company to the Form
10-K for the fiscal year ending June 30, 1994, and all
amendments thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, D.C., and to
file the same, with all exhibits thereto and other supporting
documents, with said Commission, granting unto said attorneys-in-
fact, and each of them, full power and authority to do and
perform any and all acts necessary or incidental to the
performance and execution of the powers therein expressly
granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 26 day of September, 1994.
R. S. Strauss
12
PAGE 13
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney of Director
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
director of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such director of said Company to the Form
10-K for the fiscal year ending June 30, 1994, and all
amendments thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, D.C., and to
file the same, with all exhibits thereto and other supporting
documents, with said Commission, granting unto said attorneys-in-
fact, and each of them, full power and authority to do and
perform any and all acts necessary or incidental to the
performance and execution of the powers therein expressly
granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 22nd day of September, 1994.
J. K. Vanier
13
PAGE 14
ARCHER-DANIELS-MIDLAND COMPANY
Power of Attorney of Director
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
director of ARCHER-DANIELS-MIDLAND COMPANY, a Delaware
corporation, does hereby make, constitute and appoint DOUGLAS J.
SCHMALZ, RICHARD P. REISING and D. J. SMITH, and each or any one
of them, the undersigned's true and lawful attorneys-in-fact,
with power of substitution, for the undersigned and in the
undersigned's name, place and stead, to sign and affix the
undersigned's name as such director of said Company to the Form
10-K for the fiscal year ending June 30, 1994, and all
amendments thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, D.C., and to
file the same, with all exhibits thereto and other supporting
documents, with said Commission, granting unto said attorneys-in-
fact, and each of them, full power and authority to do and
perform any and all acts necessary or incidental to the
performance and execution of the powers therein expressly
granted.
IN WITNESS WHEREOF, the undersigned has hereunto set
the undersigned's hand this 22nd day of September, 1994.
O. G. Webb
14
PAGE 1
EXHIBIT 23--CONSENT OF INDEPENDENT AUDITORS
ARCHER DANIELS MIDLAND COMPANY AND SUBSIDIARIES
June 30, 1994
We consent to the incorporation by reference in this Annual
Report (Form 10-K) of Archer Daniels Midland Company of our
report dated July 28, 1994 included in the 1994 Annual Report to
Shareholders of Archer Daniels Midland Company.
Our audits also included in the financial statement schedules of
Archer Daniels Midland Company listed in Item 14(a). These
schedules are the responsibility of the Company's management.
Our responsibility is to express an opinion based on our audits.
In our opinion, the financial statement schedules referred to
above, when considered in relation to the basic consolidated
financial statements taken as a whole, present fairly in all
material respects the information set forth therein.
We also consent to the incorporation by reference in the
following Registration Statements of our report dated July 28,
1994 with respect to the consolidated financial statements
incorporated herein by reference, and our report with which the
date is September 27, 1994, included in the preceding paragraph
with respect to the financial statement schedules included in
this Annual Report (Form 10-K) of Archer Daniels Midland
Company:
Registration Statement No. 2-91811 on Form S-8 dated June 22,
1984 (definitive Prospectus dated July 16, 1984) relating to
the Archer Daniels Midland Company 1982 Incentive Stock
Option Plan.
Registration Statement No. 33-27331 on Form S-8 dated
February 27, 1989 relating to the Archer Daniels Midland
Company Savings and Investment Plan for Hourly Employees.
Registration Statement No. 33-30403 on Form S-3 dated August
9, 1989 (definitive Prospectus dated August 21, 1989)
relating to secondary offering of the Common Stock of Archer
Daniels Midland Company.
Registration Statement No. 33-31595 on Form S-3 dated October
16, (definitive Prospectus dated October 25, 1989) relating
to secondary offering of the Common Stock of Archer Daniels
Midland Company.
Registration Statement No. 33-32425 on Form S-3 dated
December 6, 1989 (definitive Prospectus dated December 20,
1989) relating to secondary offering of the Common Stock of
Archer Daniels Midland Company.
Registration Statement No. 33-36238 on Form S-3 dated August
6, 1990 as amended by the Prospectus Supplement and Post-
Effective Amendent No. 1 dated August 14, 1990 and Post-
Effective Amendment No. 2 dated August 17, 1990 (definitive
Prospectus dated August 14, 1990) relating to secondary
offering of the Common Stock of Archer Daniels Midland
Company.
Registration Statement No. 33-37116 on Form S-3 dated October
4, 1990 (definitive Prospectus dated October 10, 1990)
relating to secondary offering of the Common Stock of Archer
Daniels Midland Company.
Registration Statement No. 33-42308 on Form S-3 dated August
19, 1991 (definitive Prospectus dated August 20, 1991)
relating to secondary offering of the Common Stock of Archer
Daniels Midland Company.
Registration Statement No. 33-46432 on Form S-3 dated March
19, 1992 (definitive Prospectus dated March 24, 1992)
relating to secondary offering of the Common Stock of Archer
Daniels Midland Company.
Registration Statement No. 33-47183 on Form S-3 dated April
15, 1992 (definitive Prospectus dated April 22, 1992)
relating to secondary offering of the Common Stock of Archer
Daniels Midland Company.
Registration Statement No. 33-49055 on Form S-3 dated
September 23, 1992 (definitive Prospectus dated October 4,
1992) relating to secondary offering of the Common Stock of
Archer Daniels Midland Company.
Registration Statement No. 33-49409 on Form S-8 dated March
15, 1993 relating to the Archer Daniels Midland 1991
Incentive Stock Option Plan and Archer Daniels Midland
Company Savings and Investment Plan.
Registration Statement No. 33-50879 on Form S-3 dated
November 1, 1993 relating to Debt Securities and Warrants to
purchase Debt Securities of Archer Daniels Midland Company.
ERNST & YOUNG LLP
Minneapolis, Minnesota
September 27, 1994
1
PAGE 1
EXHIBIT 21--SUBSIDIARIES OF THE REGISTRANT
ARCHER DANIELS MIDLAND COMPANY
June 30, 1994
Following is a list of the Registrant's subsidiaries showing the
percentage of voting securities owned:
Organized Under
Laws of Ownership
ADM Agri-Industries Ltd. Canada 100%
ADM Europe BV Netherlands 100
ADM Europoort BV Netherlands 100
ADM/Growmark River System, Inc. Delaware 100
ADM Beteiligungs. GmbH Germany 100
ADM International Ltd. (B) England 100
ADM Investor Services, Inc. Delaware 100
ADM Ireland Holdings Ltd. Ireland 100
ADM Milling Co. Minnesota 100
ADM Oelmuhlen GmbH Germany 100
ADM Ringaskiddy Ireland 100
ADM Transportation Co. Delaware 100
ADMIC Investments NV Netherlands Antilles100
Agrinational Insurance Company Vermont 100
Agrinational Ltd. Cayman Islands 100
Alfred C. Toepfer International (A) Germany 50
American River Transportation Co. Delaware 100
Collingwood Grain, Inc. Kansas 100
Compagnie Industrielle Et Financiere (CIP)(A) Luxembourg
42
Erith Oil Works Ltd. England 100
Fleischmann-Kurth Malting Company, Inc. Delaware 100
Hickory Point Bank & Trust Co. Illinois 100
Midland Stars, Inc. Delaware 100
Oelmuhle Hamburg AG (C) Germany 61
Premiere Agri Technologies Inc. Delaware 100
Tabor Grain Co. Nevada 100
(A) Not included in consolidated financial statements--included
on the equity basis.
(B) ADM International Ltd. has twenty-four subsidiary companies
whose names have been omitted because, considered in the
aggregate as a single subsidiary, they would not constitute a
significant subsidiary.
(C) Oelmuhle Hamburg AG has fifteen subsidiaries whose names
have been omitted because, considered in the aggregate as a
single subsidiary, they would not constitute a significant
subsidiary.
The names of forty-eight domestic subsidiaries and twenty-eight
international subsidiaries have been omitted because, considered
in the aggregate as a single subsidiary, they would not
constitute a significant subsidiary.
1
PAGE 1
EXHIBIT 13--ANNUAL REPORT TO SECURITY HOLDERS
Archer Daniels Midland Company
MANAGEMENT'S DISCUSSION OF
OPERATIONS AND FINANCIAL CONDITION--JUNE 30, 1994
The Company is in one business segment - procuring,
transporting, storing, processing and merchandising agricultural
commodities. The availability and price of the raw material
commodities are subject to wide fluctuations due to
unpredictable factors such as: weather; plantings; government
(domestic and foreign) farm programs and policies; changes in
global demand created by population growth and higher standards
of living; and global production of similar and competitive
crops. Generally, changes in the price of raw material
commodities can be passed through to the price of processed
products. Ethanol is one of a limited few of the Company's
processed products which must be priced to compete with products
produced from other raw materials. To minimize price risk due
to market fluctuations and risk of crop failure the Company
follows a policy of hedging commodity transactions, including
certain anticipated production requirements. Inflation over
time has an impact on commodity prices. The Company's business
is capital intensive and inflation could impact the cost of
capital investments.
Operations
Net sales and other operating income for the fiscal year ended
June 30, 1994 increased to a record high of $11.4 billion from
$9.8 billion in fiscal 1993 due primarily to an 8% increase in
average selling prices of the Company's products and to a lesser
extent, a 5% increase in volume of products sold. Cost of
products sold increased to $10.2 billion from $8.7 billion in
fiscal 1993 due principally to higher raw material commodity
costs and also the increased volume of products sold. The
effect of the higher selling prices and volume increases,
partially offset by the higher raw material commodity prices
resulted in gross profit increasing 7% to $1.1 billion. Gross
profit increased to a lesser extent than net sales and other
operating income due primarily to higher corn prices resulting
from the small corn crop due to the widespread Midwest flooding
and by the low price of imported oil, both of which negatively
impacted ethanol product margins. The flooding also had a
negative impact on procuring, transporting and merchandising
activities for the year. We estimate that higher corn costs of
about $100 million could not be passed on to ethanol buyers and
costs of approximately $40 million were incurred due to
transportation and plant operation interruptions.
Net sales and other operating income for the fiscal year ended
June 30, 1993 increased 6% to $9.8 billion from $9.2 billion in
fiscal 1992 due primarily to a 5% increase in volume of products
sold. Costs of products sold increased to $8.7 billion from
$8.2 billion in 1992 due principally to the increased volume of
products sold with the resulting gross profit for 1993
increasing 2% to $1.1 billion.
Selling, general and administrative expense increased $46
million to $371 million in 1994 from $325 million in 1993 due
principally to $26 million of expense attributable to recently
acquired operations, a $7 million increase in advertising costs
and other general cost increases in support of increased sales
volumes. Selling, general and administrative expense in 1993
increased $30 million to $325 million from $295 million in 1992
due principally to $13 million of expense attributable to
recently acquired operations and general cost increases in
support of increased sales volumes.
The decrease in other income for 1994 resulted primarily from
increased interest expense, due principally to higher average
borrowing levels, and to a lesser extent reduced gains on
marketable securities transactions. The decrease in other
income in 1993 compared to 1992 resulted primarily from
increased interest expense due to higher borrowing levels. This
decrease was partially offset by gains on marketable securities
transactions. Marketable securities transaction gains in 1994
and 1993 were $26 million and $34 million, respectively, and
marketable securities transaction losses were $17 million in
1992.
The Company's effective tax rate was 34% in 1994, 28% in 1993
and 34% in 1992. The decrease in the effective tax rate for
1993 was due primarily to a $30 million credit from settlement
of prior years' tax audits with the Internal Revenue Service.
In 1994, the increase in the statutory federal income tax rate
from 34% to 35% resulted in additional income tax accruals and a
non-recurring income tax charge of $14 million.
Effective July 1, 1992, the Company adopted FASB Statements
No. 106, "Employers' Accounting for Postretirement Benefits
Other Than Pensions" and No. 109, "Accounting for Income Taxes."
The cumulative effect of adopting these accounting changes was
to decrease earnings by $35 million, net of tax, for FASB
Statement No. 106 and to increase earnings by $68 million for
FASB Statement No. 109. The new standards did not have a
material effect on the Company's operating results.
Liquidity and Capital Resources
At June 30, 1994, the Company continued to show substantial
liquidity with working capital of $2.8 billion including cash
and marketable securities of $1.3 billion. Working capital also
includes inventory which has a replacement value in excess of
its LIFO carrying value of approximately $74 million. The cash
and marketable securities, consisting primarily of United States
government obligations, are available for working capital,
future expansion and stock repurchase plans. Capital resources
were strengthened as shown by the increase in net worth to $5
billion. The principal source of capital during the year was
funds generated from operations. The Company's ratio of long-
term debt to total capital at year end was approximately 27%.
Annual maturities of long-term debt range from $13 million to
$28 million during the next five years except for 1997 when $112
million is due.
Commercial paper and commercial bank lines of credit are
available to meet seasonal cash requirements. At June 30, 1994,
the Company had $361 million of short-term bank credit lines.
Both Standard & Poor's and Moody's continue to assign the
highest rating to the Company's commercial paper and to rate its
long-term debt as AA- and Aa2, respectively. The Company has
access to equity and debt capital through numerous alternatives
available from public and private sources in the domestic and
international markets in addition to the cash flow generated
from operations.
1
PAGE 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
The Company is in one business segment-procuring, transporting,
storing, processing and merchandising agricultural products.
Principles of Consolidation
The consolidated financial statements include the accounts of
the Company and all majority-owned subsidiaries. Investments in
affiliates are carried at cost plus equity in undistributed
earnings since acquisition.
Cash Equivalents and Marketable Securities
Cash equivalents and marketable securities are carried at cost,
and consist primarily of United States government obligations.
The Company considers all highly liquid investments with a
maturity of three months or less at the time of purchase to be
cash equivalents. At June 30, 1994 and 1993, the fair value of
the Company's marketable securities, based on quoted market
prices, exceeded the carrying value of these securities by $76
million and $66 million, respectively.
Inventories
Inventories, consisting primarily of merchandisable agricultural
commodities and related value-added products, are carried at
cost, which is not in excess of market prices. Inventory cost
methods include the last-in, first-out (LIFO) method, the first-
in, first-out (FIFO) method and the hedging procedure method.
The hedging procedure method approximates FIFO cost by valuing
inventories, futures contracts and open purchase and sale
contracts at market prices.
The Company follows a policy of hedging commodity transactions,
including certain anticipated production requirements, to
minimize price risk due to market fluctuations and risk of crop
failure. Gains or losses arising from hedges of anticipated
production requirements are included with the cost of the
commodities when purchased.
Property, Plant and Equipment
Property, plant and equipment are recorded at cost. The Company
uses the straight line method in computing depreciation for
financial reporting purposes and generally uses accelerated
methods for income tax purposes.
Net Sales
The Company follows a policy of recognizing sales at the time of
product shipment. Net margins from grain merchandised, rather
than the total sales value thereof, are included in net sales in
the consolidated statements of earnings. Gross sales of the
Company, including the total sales value of grain merchandised,
were $14.1 billion in 1994, $12.1 billion in 1993 and $11.4
billion in 1992, and include export sales of $3.2 billion in
1994, $2.9 billion in 1993 and $2.7 billion in 1992.
Per Share Data
Share and per share information have been adjusted to give
effect to stock dividends in the three years ended June 30,
1994, including the 5% stock dividend declared in July 1994, and
payable in September 1994. Net earnings per common share is
determined by dividing net earnings by the weighted average
number of common shares outstanding. The impact of common stock
equivalents is not material.
2
PAGE 3
CONSOLIDATED STATEMENTS OF EARNINGS
<TABLE>
<CAPTION> Year Ended June 30
_________________________________
1994 1993 1992
_________________________________
(In thousands, except
per share amounts)
<S> <C> <C>
<C>
Net sales and other operating income$11,374,372$9,811,362$9,23
1,502
Cost of products sold and other
operating costs 10,236,737 8,748,418 8,188,395
______________________________
Gross Profit 1,137,635 1,062,944 1,043,107
Selling, general and administrative
expenses 371,237 324,793 294,794
______________________________
Earnings From Operations 766,398 738,151 748,313
Other income (expense) (28,095) 7,858 11,256
______________________________
Earnings Before Income Taxes
and Cumulative Effect of
Accounting Changes 738,303 746,009 759,569
Income taxes 254,234 211,500 255,812
______________________________
Earnings Before Cumulative Effect
of Accounting Changes 484,069 534,509 503,757
Cumulative effect of accounting changes- 33,018 -
______________________________
Net Earnings $ 484,069$ 567,527$ 503,757
==============================
Earnings per common share
Before cumulative effect
of accounting changes $ 1.40$ 1.49$ 1.40
Cumulative effect of accounting changes - .09 -
______________________________
Net Earnings $ 1.40$ 1.58$ 1.40
==============================
<FN>
See notes to consolidated financial statements
</TABLE>
3
PAGE 4
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30
__________________________________
1994 1993
__________________________________
Assets (In thousands)
<S> <C>
<C>
Current Assets
Cash and cash equivalents $ 316,394 $ 386,483
Marketable securities 1,019,059 1,481,831
Receivables 1,041,769 824,882
Inventories 1,422,147 1,131,787
Prepaid expenses 111,426 96,751
__________ __________
Total Current Assets 3,910,795 3,921,734
Investments and Other Assets
Investments in and advances
to affiliates 297,147 331,672
Long-term marketable securities 891,073 872,265
Other assets 109,263 63,606
__________ __________
1,297,483 1,267,543
Property, Plant and Equipment
Land 101,854 94,143
Buildings 1,029,817 907,625
Machinery and equipment 5,073,631 4,622,590
Construction in progress 455,729 377,317
Less allowances for depreciation(3,122,456) (2,786,841)
__________ __________
3,538,575 3,214,834
__________ __________
$8,746,853 $8,404,111
========== ==========
</TABLE>
4
PAGE 5
<TABLE>
<CAPTION>
June 30
_________________________________
1994 1993
_________________________________
Liabilities and Shareholders' Equity (In thousands)
<S> <C>
<C>
Current Liabilities
Accounts payable $ 690,824 $ 555,514
Accrued expenses 412,438 373,431
Current maturities of long-term debt23,716 31,286
__________ __________
Total Current Liabilities 1,126,978 960,231
Long-Term Debt 2,021,417 2,039,143
Deferred Credits
Income taxes 432,396 414,092
Other 120,641 107,394
__________ __________
553,037 521,486
Shareholders' Equity
Common stock 3,415,955 3,366,622
Reinvested earnings 1,629,466 1,516,629
__________ __________
5,045,421 4,883,251
__________ __________
$8,746,853 $8,404,111
========== ==========
<FN>
See notes to consolidated financial statements.
</TABLE>
5
PAGE 6
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Year Ended June 30
1994 1993 1992
(In thousands)
<S> <C> <C>
<C>
Operating Activities
Net earnings $ 484,069 $ 567,527 $ 503,757
Adjustments to reconcile to net
cash provided by operations
Cumulative effect of accounting changes- (33,018) -
Depreciation and amortization 354,463 328,549 293,729
Deferred income taxes 22,009 16,238 30,415
Amortization of long-term debt discount19,61316,900 26,044
Other (23,230) (39,743) (13,662)
Changes in operating assets and liabilities
Receivables (114,741) (90,890) (54,066)
Inventories (172,649) (69,927) (92,355)
Prepaid expenses (13,450) (8,019) (1,843)
Accounts payable and accrued expenses74,287(13,804) 176,875
________ ________ ________
Total Operating Activities 630,371 673,813 868,894
Investing Activities
Purchases of property, plant and equipment(514,364) (394,400)
(479,528)
Business acquisitions (257,731) (200,023) (21,197)
Investments in and advances to affiliates16,506(11,441)(88,237
)
Purchases of marketable securities(2,136,553)(2,691,913)(1,004
,824)
Proceeds from sales of marketable
securities 2,643,368 1,637,373 773,816
_________ _________ _________
Total Investing Activities (248,774)(1,660,404)(819,970)
Financing Activities
Long-term debt borrowings 12,001 506,576 594,355
Long-term debt payments (76,133) (33,256) (210,616)
Purchases of treasury stock (355,226) (35,429) (85,889)
Cash dividends and other (32,328) (29,177) (30,009)
_________ _________ _________
Total Financing Activities (451,686) 408,714 267,841
_________ _________ _________
Increase (Decrease) In Cash And Cash
Equivalents (70,089) (577,877) 316,765
Cash And Cash Equivalents Beginning Of
Period 386,483 964,360 647,595
_________ _________ _________
Cash And Cash Equivalents End Of
Period $ 316,394 $ 386,483 $ 964,360
========= ========= =========
<FN>
See notes to consolidated financial statements.
</TABLE>
6
PAGE 7
<TABLE>
<CAPTION>
Consolidated Statement of Shareholders' Equity
Common Stock
___________________
Reinvested
Shares Amount Earnings
___________________________________
(In thousands)
<S> <C> <C>
<C>
Balance July 1, 1991 310,924 $2,637,129 $1,285,166
Net earnings 503,757
Cash dividends paid-$.09 per share (30,789)
Acquisitions 2,636 72,764
Treasury stock purchases (3,329) (85,889)
5% stock dividend-September 1992 15,547 389,996 (389,996)
Foreign currency translation 93,879
Other 702 16,600 (264)
_______ __________ __________
Balance June 30, 1992 326,480 3,030,600 1,461,753
Net earnings 567,527
Cash dividends paid-$.09 per share (32,266)
Treasury stock purchases (1,531) (35,429)
5% stock dividend-September 1993 16,300 348,927 (348,927)
Foreign currency translation (131,153)
Other 1,050 22,524 (305)
_______ __________ __________
Balance June 30, 1993 342,299 3,366,622 1,516,629
Net earnings 484,069
Cash dividends paid-$.09 per share (32,586)
Acquisitions 19 422
Treasury stock purchases (15,597) (355,226)
5% stock dividend-declared July 199416,364 381,707 (381,707)
Foreign currency translation 43,363
Other 554 22,430 (302)
_______ __________ __________
Balance June 30, 1994 343,639 $3,415,955 $1,629,466
======= ========== ==========
<FN>
See notes to consolidated financial statements.
</TABLE>
7
PAGE 8
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
Note l-Inventories
1994 1993
(In thousands)
<S> <C>
<C>
LIFO inventories
FIFO value $ 459,640 $ 404,246
LIFO valuation reserve (74,016) (28,359)
__________ __________
LIFO carrying value 385,624 375,887
FIFO inventories including
hedging procedure method 1,036,523 755,900
__________ __________
$1,422,147 $1,131,787
========== ==========
Note 2-Accrued Expenses
1994 1993
(In thousands)
Income taxes $ 116,650 $ 108,411
Insurance loss reserves 79,488 59,858
Payroll and employee benefits 105,283 98,365
Other 111,017 106,797
__________ __________
$ 412,438 $ 373,431
========== ==========
</TABLE>
<TABLE>
<CAPTION>
Note 3-Long-Term Debt and Financing Arrangements
1994 1993
_____________________
(In thousands)
<S> <C>
<C>
8.875% Debentures $300 million face
amount, due in 2011 $ 298,166$ 298,120
8.125% Debentures $300 million face
amount, due in 2012 297,901 297,851
8.375% Debentures $300 million face
amount, due in 2017 293,988 293,904
7.125% Debentures $250 million face
amount, due in 2013 249,361 249,345
6.25% Notes $250 million
face amount, due in 2003 249,293 249,103
Zero Coupon Debt $400 million face
amount, due in 2002 140,768 123,191
7% Debentures $250 million face amount
due in 2011 125,228 123,686
10.25% Debentures $100 million
face amount, due in 2006 98,628 98,569
6% Bonds 150 million Deutsche Mark
face amount, due in 1997 94,400 87,669
Industrial Revenue Bonds at various
rates from 5.30% to 13.25% and due
in varying amounts to 2012 79,442 80,466
Other 117,958 168,525
____________________
Total long-term debt 2,045,133 2,070,429
Less current maturities (23,716) (31,286)
____________________
$2,021,417$2,039,143
====================
</TABLE>
At June 30, 1994, the fair value of the Company's long-term debt
exceeded the carrying value by $197 million, as estimated by
using quoted market prices or discounted future cash flows based
on the Company's current incremental borrowing rates for similar
types of borrowing arrangements.
Unamortized original issue discounts on the 7% Debentures and
Zero Coupon Debt issues are being amortized at 15.35% and
13.80%, respectively. Accelerated amortization of the discounts
for tax purposes has the effect of lowering the actual rate of
interest to be paid over the remaining lives of the issues to
approximately 10.80% and 5.87%, respectively.
The aggregate maturities for long-term debt for the five years
after June 30, 1994 are $24 million, $15 million, $112 million,
$28 million, and $13 million, respectively.
At June 30, 1994 the Company had lines of credit totaling $361
million.
Note 4-Shareholders' Equity
The Company has authorized 800 million shares of common stock
and 500,000 shares of preferred stock, both without par value.
No preferred stock has been issued. At June 30, 1994 and 1993
the Company had approximately 15.6 million and 9.5 million
common shares, respectively, in treasury. Treasury stock is
recorded at cost, $354 million at June 30, 1994, as a reduction
of common stock.
Stock option plans provide for the granting of options to
employees to purchase common stock of the Company at market
value on the date of grant. Options expire five to eight years
after the date of grant. At June 30, 1994 options for 1,950,686
shares at prices ranging from $11.88 to $27.59 per share were
outstanding of which 535,492 shares were exercisable. There
were 1,188,408 shares available for future grant at June 30,
1994.
Cumulative foreign currency translation losses of $4 million at
June 30, 1994 are included as a component of reinvested
earnings.
8
PAGE 9
Note 5-Other Income (Expense)
<TABLE>
<CAPTION>
1994 1993 1992
________________________________
(In thousands)
<S> <C> <C>
<C>
Investment income $100,706 $100,715 $112,596
Interest expense (173,429 (150,945 (115,417
) ) )
Gain (loss) on marketable
securities transactions 25,785 33,531 (16,719)
Other, including equity
in earnings of affiliates 18,843 24,557 30,796
_______ _______ _______
$(28,095 $ 7,858 $ 11,256
)
======== ======== ========
</TABLE>
Interest expense is net of interest capitalized of $26 million,
$23 million and $22 million in 1994, 1993 and 1992,
respectively.
The Company made interest payments of $180 million, $151 million
and $104 million in 1994, 1993 and 1992, respectively.
Marketable securities transactions increased net earnings in
1994 and 1993 by $.05 and $.06 per share, respectively, and
decreased net earnings in 1992 by $.03 per share.
<TABLE>
<CAPTION>
Note 6-Income Taxes
1994 1993 1992
(In thousands)
<S> <C> <C>
<C>
Current
Federal $202,708 $160,966 $217,260
State 30,969 31,471 27,349
Foreign 14,460 (583) 4,560
Deferred
Federal 4,102 23,103 3,415
State (3,036) (1,857) (1,886)
Foreign 5,031 (1,600) 5,114
_______ _______ ________
$254,234 $211,500 $255,812
======== ======== ========
</TABLE>
Significant components of the Company's deferred tax liabilities
and assets are as follows:
<TABLE>
<CAPTION>
1994 1993
(In thousands)
<S> <C>
<C>
Deferred tax liabilities
Depreciation $365,491 $341,778
Bond discount amortization 60,308 56,333
Other 55,575 48,117
________ ________
481,374 446,228
Deferred tax assets
Postretirement benefits 27,624 19,924
Other 85,406 57,360
________ ________
113,030 77,284
________ ________
Net deferred tax liabilities 368,344 368,944
Current net deferred tax
assets 64,052 45,148
included in prepaid expenses
________ ________
Non-current net deferred
tax liabilities $432,396 $414,092
======== ========
</TABLE>
1992 deferred income tax expense consists principally of
differences between financial reporting and income tax methods
of recording depreciation expense.
Reconciliation of the statutory federal income tax rate to the
Company's effective tax rate is as follows:
<TABLE>
<CAPTION>
1994 1993 1992
<S> <C> <C>
<C>
Statutory rate 35.0% 34.0% 34.0%
State income taxes, net of
federal tax benefit 2.3 2.6 2.6
Foreign sales corporation (2.7) (2.3) (1.6)
Settlement of tax issues - (4.0) -
Federal tax rate increase 1.8 - -
Other (2.0) (1.9) (1.3)
___ ___ ___
Effective rate 34.4% 28.4% 33.7%
==== ==== ====
</TABLE>
The Company made income tax payments of $250 million, $251
million and $196 million in 1994, 1993 and 1992, respectively.
In the first quarter of 1994, the federal income tax rate
increase resulted in additional income tax accruals and a non-
recurring income tax charge of $14 million, or $.04 per share.
During the fourth quarter of 1993, the Company settled various
tax matters related to audits of prior tax years by the Internal
Revenue Service. The settlement resulted in a $30 million
credit, or $.08 per share, to the 1993 provision.
Effective July 1, 1992, the Company adopted FASB Statement No.
109, "Accounting for Income Taxes." The cumulative effect of
restating deferred taxes as of July 1, 1992, was to increase
first quarter of 1993 earnings by $68 million, or $.19 per
share.
9
PAGE 10
Note 7-Leases
The Company leases principally transportation equipment under
noncancellable operating leases with total future lease
commitments of $102 million, which range from $6 million to $28
million during each of the next five years, and expire on
various dates through 2026. Rent expense for 1994, 1993 and 1992
was $69 million, $66 million, and $59 million, respectively.
Note 8-Employee Benefit Plans
The Company has noncontributory and trusteed pension plans
covering substantially all employees. It is the Company's
policy to fund pension costs as required by the Employee
Retirement Income Security Act. At June 30, 1994 the plans had
assets at fair value of $267 million and projected benefit
obligations of $305 million based on a discount rate of 7.5%.
Pension expense is not material.
The Company adopted FASB Statement No. 106, "Employers'
Accounting for Postretirement Benefits Other Than Pensions," for
health care and life insurance benefit plans as of July 1, 1992.
The cumulative effect of adopting this statement decreased first
quarter 1993 earnings by $35 million (net of related taxes of
$20 million), or $.10 per share. This charge represented the
discounted present value of expected future retiree health
benefits attributed to employees' service rendered prior to July
1, 1992. The accumulated postretirement benefit obligations
(APBO) for the unfunded plans at June 30, 1994, were $79
million, based on a discount rate of 7.5% and an assumed health
care cost trend rate of 11.8% for 1995 gradually decreasing to
5.5% by 2004. Expense of these plans is not material. A 1%
increase in the health care cost trend rate assumption would not
have had a material impact on the APBO or expense for the year.
In addition, the Company has savings and investment plans
available to eligible employees with one year of service.
Employees may contribute up to 6% of their salaries, not to
exceed $9,000. The Company matches these contributions, at
various levels, to a maximum of $6,000.
<TABLE>
<CAPTION>
Note 9-Geographic Information
Net Sales
and Other Earnings
Operating From Identifiable
Income Operations Assets
_________ __________ ____________
(In millions)
<S> <C> <C>
<C>
Fiscal 1994
United States $ 8,365 $704 $5,140
Foreign 3,009 62 1,083
_______ ____ ______
$11,374 $766 $6,223
======= ==== ======
Fiscal 1993
United States $ 7,266 $716 $4,407
Foreign 2,545 22 925
_______ ____ ______
$ 9,811 $738 $5,332
======= ==== ======
Fiscal 1992
United States $ 7,041 $709 $3,988
Foreign 2,191 39 938
_______ ____ ______
$ 9,232 $748 $4,926
======= ==== ======
</TABLE>
Earnings from operations represent earnings before other income,
income taxes and cumulative effect of accounting changes.
Identifiable assets exclude cash and cash equivalents,
marketable securities and investments in and advances to
affiliates.
10
PAGE 11
REPORT OF INDEPENDENT AUDITORS
Board of Directors and Shareholders
Archer Daniels Midland Company
Decatur, Illinois
We have audited the accompanying consolidated balance
sheets of Archer Daniels Midland Company and subsidiaries as of
June 30, 1994 and 1993, and the related consolidated statements
of earnings, shareholders' equity and cash flows for each of the
three years in the period ended June 30, 1994. These financial
statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that we
plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the consolidated
financial position of Archer Daniels Midland Company and its
subsidiaries at June 30, 1994 and 1993, and the consolidated
results of their operations and their cash flows for each of the
three years in the period ended June 30, 1994, in conformity
with generally accepted accounting principles.
As discussed in the notes to the consolidated financial
statements, the Company changed its method of accounting for
income taxes and postretirement benefits in 1993.
Minneapolis, Minnesota
July 28, 1994
11
PAGE 12
QUARTERLY FINANCIAL DATA (Unaudited)
<TABLE>
<CAPTION>
Quarter
First Second Third Fourth Total
(In thousands, except per share amounts)
<S> <C> <C> <C>
<C> <C>
Fiscal 1994
Net sales $2,613,628$2,821,561$3,010,001$2,929,182$11,374,372
Gross profit 223,137 322,337 285,658 306,503 1,137,635
Net earnings 69,063 146,059 131,269 137,678 484,069
Per common share .20 .42 .38 .40 1.40
Fiscal 1993
Net sales $2,384,477$2,547,483$2,457,142$2,422,260 $9,811,362
Gross profit 261,290 323,977 264,868 212,809 1,062,944
Earnings before cumulative
effect of accounting changes125,603155,376 129,440 124,090 534,509
Per common share .35 .43 .36 .35 1.49
Net earnings 158,621 155,376 129,440 124,090 567,527
Per common share .44 .43 .36 .35 1.58
</TABLE>
Results for the fourth quarter of fiscal 1993 included a $30
million credit, or $.08 per share, from settlement of prior
years' tax audits with the Internal Revenue Service.
Results for the first quarter of fiscal 1993 have been restated
for the cumulative effect of the adoption of FASB Statements No.
106 and No. 109 resulting in a net credit of $33 million, or
$.09 per share.
12
PAGE 13
COMMON STOCK MARKET PRICES AND DIVIDENDS
The Company's common stock is listed and traded on the New York
Stock Exchange, Chicago Stock Exchange, Tokyo Stock Exchange,
Frankfurt Stock Exchange, Stock Exchange of Basle, Switzerland
and the Stock Exchange of Geneva, Switzerland. The following
table sets forth, for the periods indicated, the high and low
market prices of the common stock and common stock cash
dividends.
<TABLE>
<CAPTION>
Cash
Market Price Dividends
High Low Per Share
<S> <C> <C>
<C>
Fiscal 1994--Quarter Ended
June 30 23 7/8 21 1/4 .024
March 31 26 1/4 21 1/2 .024
December 31 22 7/8 20 5/8 .024
September 30 23 20 .023
Fiscal 1993--Quarter Ended
June 30 23 3/8 21 1/8 .023
March 31 26 1/4 22 1/4 .023
December 31 25 22 5/8 .023
September 30 23 7/8 20 1/4 .022
</TABLE>
The number of shareholders of the Company's common stock at June
30, 1994 was 33,940. The Company expects to continue its policy
of paying regular cash dividends, although there is no assurance
as to future dividends because they are dependent on future
earnings, capital requirements and financial condition.
13
PAGE 14
TEN-YEAR SUMMARY
<TABLE>
<CAPTION>
Operating, Financial and Other Data (Dollars in thousands,
except per share data)
1994 1993 1992
<S> <C>
<C> <C>
Operating
Net sales and other operating income $11,374,372 $9,811,362 $9,231,502
Depreciation and amortization 354,463 328,549 293,729
Net earnings 484,069 567,527 503,757
Per common share 1.40 1.58 1.40
Cash dividends 32,586 32,266 30,789
Per common share .09 .09 .09
Financial
Working capital $2,783,817 $2,961,503 $2,276,564
Per common share 8.10 8.24 6.32
Current ratio 3.5 4.1 3.4
Inventories 1,422,147 1,131,787 1,025,030
Net property, plant and equipment 3,538,575 3,214,834 3,060,096
Gross additions to property, plant
and equipment 682,485 572,022 614,844
Total assets 8,746,853 8,404,111 7,524,530
Long-term debt 2,021,417 2,039,143 1,562,491
Shareholders' equity 5,045,421 4,883,251 4,492,353
Per common share 14.68 13.59 12.48
Other
Weighted average shares outstanding (000's) 346,864 359,914 360,877
Number of shareholders 33,940 33,654 32,377
Number of employees 16,013 14,168 13,524
</TABLE>
Share and per share data have been adjusted for three-for-two
stock splits in June 1986 and December 1989, and annual 5% stock
dividends through September 1994.
Net earnings for 1993 includes a credit of $68 million or $.19
per share and a charge of $35 million or $.10 per share for the
cumulative effects of changes in accounting for income taxes and
postretirement benefits, respectively.
Net earnings for 1986 include an extraordinary loss on debt
repurchase of $9 million or $.03 per share.
<TABLE>
<CAPTION>
1991 1990 1989 1988 1987 1986 1985
<C> <C> <C> <C> <C> <C>
<C>
$8,468,19 $7,751,3 $7,928,8 $6,798,3 $5,774,6 $5,335,9 $4,738,7
8 41 36 94 21 75 67
261,367 248,113 220,538 183,952 155,899 138,453 116,466
466,678 483,522 424,673 353,058 265,355 230,386 163,908
1.29 1.34 1.19 .97 .73 .64 .46
29,527 25,976 17,271 17,095 16,189 14,199 13,354
.08 .07 .05 .05 .04 .04 .04
$1,674,73 $1,627,4 $1,487,1 $1,408,6 $1,252,4 $1,147,7 $1,039,0
5 59 51 64 06 57 04
4.65 4.49 4.14 3.95 3.44 3.18 2.93
3.0 3.4 3.4 3.0 3.5 4.2 4.2
917,495 771,233 694,998 773,702 784,338 521,592 551,633
2,695,625 2,131,80 1,832,25 1,661,22 1,478,45 1,315,07 1,125,86
7 8 0 8 5 7
911,586 550,851 405,888 370,295 314,730 341,900 160,437
6,260,607 5,450,01 4,728,30 4,397,56 3,862,09 3,315,43 2,967,11
0 8 4 1 6 7
980,273 750,901 690,052 692,878 657,465 570,248 569,323
3,922,295 3,573,22 3,033,50 2,630,52 2,367,67 2,075,88 1,803,39
8 3 9 3 7 4
10.90 9.87 8.46 7.37 6.50 5.75 5.09
362,127 360,859 357,496 363,717 363,256 357,874 353,649
28,981 26,076 20,382 18,491 17,199 16,815 17,351
13,049 11,861 10,214 9,631 10,573 10,386 9,446
</TABLE>
14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1994
<PERIOD-END> JUN-30-1994
<CASH> 316,394
<SECURITIES> 1,019,059
<RECEIVABLES> 1,041,769
<ALLOWANCES> 0
<INVENTORY> 1,422,147
<CURRENT-ASSETS> 3,910,795
<PP&E> 6,661,031
<DEPRECIATION> 3,122,456
<TOTAL-ASSETS> 8,746,853
<CURRENT-LIABILITIES> 1,126,978
<BONDS> 2,021,417
<COMMON> 3,415,955
0
0
<OTHER-SE> 1,629,466
<TOTAL-LIABILITY-AND-EQUITY> 8,746,853
<SALES> 11,374,372
<TOTAL-REVENUES> 11,374,372
<CGS> 10,236,737
<TOTAL-COSTS> 10,236,737
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 173,429
<INCOME-PRETAX> 738,303
<INCOME-TAX> 254,234
<INCOME-CONTINUING> 484,069
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 484,069
<EPS-PRIMARY> 1.40
<EPS-DILUTED> 1.40
</TABLE>
