DECATUR, Ill.--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) today announced that, as a
result of strong operating cash flows and expected improvements in its
earnings for 2014, its Board of Directors has voted to raise the
company’s regular quarterly cash dividend from 19.0 cents per share to
24.0 cents per share, or 26 percent, on the company’s common stock
payable March 13, 2014, to stockholders of record at the close of
business on Feb. 20, 2014.
“Our continued strong cash flow generation and our confidence in the
future earnings power of our company allow us to significantly increase
our quarterly dividend,” said Patricia Woertz, ADM’s chairman and CEO.
“Historically, we have paid out approximately 20 to 25 percent of
earnings; going forward we will aim for a range of 25 to 30 percent,
thereby allowing shareholders to participate more directly in the
earnings stream of the company.”
The company also announced that it intends to buy back from its
shareholders 18 million shares of its stock by the end of 2014 to fully
mitigate the dilutive impact of equity units converted in 2011 and
compensation and benefit plan issuances in 2013 and 2014. At current
prices, this would represent about $725 million. To the extent that
ADM’s credit metrics improve throughout the year and the company
receives significant proceeds from asset sales, the company will
consider further distributions to shareholders later in 2014 in the
context of its capital allocation strategy.
Woertz also provided some detail on the company’s 2014 business plans,
noting that from the cash flows to be generated in 2014, it expects to
invest about $1.4 billion in capital projects, with the majority of the
growth capital invested outside the U.S., and will return about $1.4
billion to shareholders in the form of the higher dividends and the
repurchase of 18 million shares.
“We will continue to take a balanced approach to capital allocation,”
Woertz said. “Our strong balance sheet and solid cash flow generation
will allow for capital investments in growth projects with strong
returns and return of capital to our shareholders and still leave us
sufficient ability to take advantage of strategic opportunities that may
arise in 2014. We are confident and enthusiastic about the opportunities
For more than a century, the people of Archer Daniels Midland Company
(NYSE: ADM) have transformed crops into products that serve vital needs.
Today, 30,000 ADM employees around the globe convert oilseeds, corn,
wheat and cocoa into products for food, animal feed, industrial and
energy uses. With more than 265 processing plants, 460 crop procurement
facilities, and the world’s premier crop transportation network, ADM
helps connect the harvest to the home in more than 140 countries. For
more information about ADM and its products, visit www.adm.com.
Archer Daniels Midland Company
Jackie Anderson, 217-424-5413