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Archer Daniels Midland Declares Dividend of $0.30 Per Share

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Price movement

Archer Daniels Midland (ADM) has a market cap of $25.7 billion. It rose by 1.1% to close at $43.93 per share on August 3, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.07%, 4.7%, and 21.8%, respectively, on the same day. ADM is trading 0.76% above its 20-day moving average, 2.5% above its 50-day moving average, and 15.1% above its 200-day moving average.

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Related ETFs and peers

The Vanguard Large-Cap ETF (VV) invests 0.13% of its holdings in ADM. The ETF tracks a market-cap-weighted index that covers 85% of the market capitalization of the US equity market.

The Consumer Staples Select Sector SPDR ETF (XLP) invests 1.4% of its holdings in ADM. The ETF tracks a market-cap-weighted index of consumer staples stocks drawn from the S&P 500. The YTD price movement of XLP was 8.9% on August 3.

The market caps of ADM’s competitors are as follows:

  • Bunge (BG) — $9.0 billion
  • Ingredion (INGR) — $9.6 billion

ADM declares dividend

Archer Daniels Midland Company has declared a cash dividend of $0.30 per share on its common stock. The dividend will be paid on September 7, 2016, to shareholders of record on August 17, 2016.

Performance of Archer Daniels Midland in 2Q16

Archer Daniels Midland reported 2Q16 revenues of $15.6 billion, a fall of 9.3% from the revenues of $17.2 billion in 2Q15. The operating profit of agricultural services and oilseeds processing fell by 36.2% and 32.0%, respectively, and the operating profit of corn processing and wild flavors and specialty ingredients rose by 7.4% and 1.9%, respectively, between 2Q15 and 2Q16. The company’s gross profit margin fell by 13.7%.

Its net income and EPS (earnings per share) fell to $284.0 million and $0.48, respectively, in 2Q16, compared with $386.0 million and $0.62, respectively, in 2Q15. It reported adjusted EPS of $0.41 in 2Q16, a fall of 31.7% from 2Q15.

ADM’s cash and cash equivalents and operating working capital fell by 61.5% and 1.2%, respectively, between 2Q15 and 2Q16. Its debt-to-equity ratio rose to 0.59x in 2Q16, compared with 0.54x in 2Q15. In the next part of this series, we’ll discuss the performance of Delphi Automotive in 2Q16.

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