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ADM Announces Upcoming Restructuring and Impairment Charges - Adds to a History of One-time Items

|Includes: Archer Daniels Midland Co. (ADM)

Last week, Archer-Daniels-Midland Company (NYSE: ADMannounced a plan to reduce its global workforce by eliminating nearly 1,000 positions. In connection with this effort, the company plans to incur restructuring charges of $50 million to $75 million during the third quarter of fiscal 2012. ADM also disclosed the decision to terminate its commercial alliance with Metabolix as of 8-Feb-12. As a result, ADM will record charges between $300 million and $360 million, which will primarily consist of asset impairment charges. 

To give some perspective, here are other one-time charges and gains recorded by ADM during the past few years. Charges related to the abandonment and write-down of long-lived assets totaled $77 million. A $158 million restructuring charge was recorded in FY09. In fiscal 2Q11, ADM recognized a $71 million gain as a result of revaluing a previously held investment in Golden Peanut. In fiscal 2Q11, ADM updated its estimates for service lives of certain of its machinery and equipment assets, resulting in a $133 million increase in pre-tax earnings.