Archer-Daniels-Midland Company (NYSE:ADM) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:00 am ET

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Archer-Daniels-Midland Company (NYSE:ADM) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, and welcome to the ADM Second Quarter 2020 Earnings Conference Call. [Operator Instructions] [Operator Instructions]

I would now like to introduce your host for today's call, Victoria de la Huerga, Vice President, Investor Relations for ADM. Ms. de la Huerga. You may begin.

Executive
Victoria de la Huerga

Thank you, Amy. Good morning, and welcome to ADM's second quarter earnings webcast. Starting tomorrow, a replay of today's webcast will be available at adm.com. For those following the presentation, please turn to slide two, the company's safe harbor statement, which says that some of our comments and materials constitute forward-looking statements that reflect management's current views and estimates of future economic circumstances, industry conditions, company performance and financial results.

These statements and materials are based on many assumptions and factors that are subject to risks and uncertainties. ADM has provided additional information in its reports on file with the SEC concerning assumptions and factors that could cause actual results to differ materially from those in this presentation, and you should carefully review the assumptions and factors in our SEC reports. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements as a result of new information or future events.

On today's webcast, our Chairman and Chief Executive Officer, Juan Luciano, will provide an overview of the quarter and important actions we are taking to meet our strategic goal. Our Chief Financial Officer, Ray Young, will review financial highlights and corporate results as well as the drivers of our performance and our outlook. Then Juan will make some final comments. After which, they will take your questions. Please turn to slide three.

I will now turn the call over to Juan.

Executive
Juan R. Luciano

Thank you, Victoria. Last night, we reported second quarter adjusted earnings per share of $0.85, up from $0.60 in the prior year quarter. Adjusted segment operating profit was $804 million, and our trailing four quarter adjusted ROIC was 8.1%. I continue to be proud of how our team is performing under challenging and dynamic circumstances. We are fulfilling our purpose by providing high-quality nutrition around the globe. And we are doing it while remaining true to our values, protecting the health and safety of our colleagues, fostering a positive, inclusive culture both within and outside of ADM, and safeguarding our environment.

Around the globe, ADM colleagues have continued serving our customers and supporting the global food supply chain, with no notable disruptions to our operations. Our results are a testament to their dedication as well as the resilience of our business model and the transformation we have made in our company. Through good times and challenging times, we have kept a strong and steady focus on our strategy. We are not done, but we can be proud of where we are today.

Let me share with you some of our accomplishments from the quarter. In our Optimize pillar, our Ag Services and Oilseeds team continued their work to enhance the return structure of the business, identifying and executing on