Archer Daniels Midland Company Performed Solidly Amidst Industry Challenges

“While the quarterly results were adversely impacted by two significant, unusual items, our underlying performance was solid in view of the global economic conditions and the associated challenges faced by our industry,” said Chairman of the Board and Chief Executive Officer Patricia Woertz.

06/05/09 Archer Daniels Midland Company announced net earnings of $ 8 million for the quarter ended March 31, 2009, including a $ 132 million non-cash after-tax charge related to currency derivative losses of the Company’s equity investee, Gruma S.A.B. de C.V., and a $ 97 million income tax charge related to the Company’s investment in Wilmar International Limited. Net earnings for the quarter ended March 31, 2008 were $ 517 million. Net sales and other operating income decreased 21 % to $ 14.8 billion.

“While the quarterly results were adversely impacted by two significant, unusual items, our underlying performance was solid in view of the global economic conditions and the associated challenges faced by our industry,” said Chairman of the Board and Chief Executive Officer Patricia Woertz. “Our financial condition is strong, and we remain focused on managing risks and costs as we execute our long-term growth strategy.”

-Net earnings for the quarter ended March 31, 2009, including the negative impacts related to the aforementioned equity investments, decreased 98 % to $ 8 million - $ .01 per share from $ 517 million - $ .80 per share last year.

-Negative impacts related to the aforementioned equity investments reduced net earnings by $ 229 million - $ .36 per share for the quarter ended March 31, 2009.

-Net sales and other operating income decreased 21 % to $ 14.8 billion for the quarter ended March 31, 2009.

-Segment operating profit for the quarter ended March 31, 2009, which includes the negative impact of the Gruma derivative losses, decreased 72 % to $ 254 million from $ 913 million last year.

*Oilseeds Processing operating profit decreased primarily due to weaker demand in North America partially offset by improved results in Asia.

*Corn Processing operating profit declined due principally to decreased Bioproducts results driven primarily by continued challenges in the ethanol industry.

*Agricultural Services operating profit decreased as global supplies of agricultural commodities increased while demand slowed, which led to a contraction of market opportunities.

*Other operating profit decreased due principally to a non-cash loss related to the Company’s investment in Gruma S.A.B. de C.V.

Discussion of Operations

Net sales and other operating income decreased 21 % to $ 14.8 billion for the quarter and increased 10 % to $ 52.7 billion for the nine months. For the quarter, decreased average selling prices, resulting principally from price moderation of underlying commodity costs and foreign exchange translation impacts, accounted for approximately 85 % of the decline, the remainder attributable to decreased sales volumes. Year-to-date net sales and other operating income increased 10 % due principally to increased average selling prices resulting primarily from higher underlying commodity costs partially offset by decreased sales volumes.

Segment operating profit decreased $ 659 million for the quarter and decreased $ 420 million for the nine months. Corporate results increased $ 56 million and $ 806 million for the quarter and nine months, respectively. Income taxes decreased $ 94 million for the quarter and increased $ 173 million for the nine months. Income taxes for the quarter and nine months include a $ 97 million income tax charge resulting from the restructuring of the holding company structure in which the Company holds a portion of its equity investment in Wilmar International Limited. Excluding this $ 97 million income tax charge, income tax rates were broadly comparable and income tax expense changed in line with changes in pre-tax income.

Oilseeds Processing Operating Profit

Oilseeds Processing operating profit decreased $ 13 million for the quarter and increased $ 387 million for the nine months. Crushing and origination results decreased $ 79 million for the quarter due principally to weaker North American crushing margins and weaker fertilizer margins in South America, as the economic slowdown reduced product demand. Crushing and origination results increased $ 175 million for the nine months due principally to improved global crushing and origination margins partially offset by lower fertilizer sales volumes and margins. Refining, packaging, biodiesel and other results increased $ 13 million for the quarter primarily due to improved margins for edible soy proteins. In addition, refining, packaging, biodiesel and other results for the nine months improved due to increased biodiesel sales volumes and margins in South America and the absence of asset abandonment charges of $ 18 million included in the nine months ended March 31, 2008. Asia results increased $ 53 million for the quarter and $ 116 million for the nine months due principally to improved earnings related to equity investments, principally Wilmar International Limited, and a gain of $ 18 million from the disposal of an equity investment.

Corn Processing Operating Profit

Corn Processing operating profit decreased $ 123 million for the quarter and $ 503 million for the nine months. Sweeteners and starches operating profit increased $ 44 million for the quarter primarily due to higher average selling prices partially offset by higher net corn costs and lower sales volumes. Sweeteners and starches operating profit decreased $ 67 million for the nine months due principally to higher net corn costs partially offset by higher average selling prices. Bioproducts operating profit decreased $ 167 million for the quarter and $ 436 million for the nine months due principally to a significant decline in ethanol margins resulting from higher net corn costs, lower average selling prices and inventory write-downs.

Agricultural Services Operating Profit

Agricultural Services operating profit decreased $ 245 million for the quarter as global supplies of agricultural commodities increased, while demand slowed resulting in a contraction in merchandising and handling opportunities this quarter. Year-to-date merchandising and handling operating profit increased $ 77 million due principally to improved margins resulting from opportunities created by volatile commodity and freight market conditions. Transportation results increased for the quarter due principally to reduced operating costs partially offset by lower barge freight rates. Transportation results for the nine months increased primarily due to higher barge freight rates.

Other Operating Profit

Other operating profit decreased $ 278 million for the quarter and $ 405 million for the nine months. Wheat, cocoa, malt and sugar operating profit decreased $ 213 million for the quarter and $ 174 million for the nine months due principally to lower equity earnings from the Company’s investment in Gruma S.A.B. de C.V. primarily related to foreign currency derivative losses. Financial operating profit decreased $ 65 million for the quarter and $ 231 million for the nine months due principally to losses on managed fund investments, increased captive insurance loss provisions and decreased interest income of the Company’s brokerage services business.

Corporate Results

Corporate results increased $ 56 million for the quarter and $ 806 million for the nine months due principally to LIFO charges of $ 5 million for the quarter and LIFO credits of $ 571 million for the nine months ended March 31, 2009 compared to LIFO charges of $ 64 million and $ 371 million for the quarter and nine months ended March 31, 2008, respectively. Investment (expense) income decreased $ 56 million for the quarter and $ 188 million for the nine months primarily related to increased interest expense and decreased interest income.