Profile: Archer Daniels Midland Co (ADM)

ADM on New York Consolidated

47.48USD
5 Mar 2015
Change (% chg)

$0.40 (+0.85%)
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$47.08
Open
$47.30
Day's High
$47.54
Day's Low
$46.63
Volume
4,734,767
Avg. Vol
3,950,458
52-wk High
$53.91
52-wk Low
$40.37

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Archer-Daniels-Midland-Company, incorporated on February 5, 1923, is engaged in the processing of oilseeds, corn, wheat, cocoa, and other agricultural commodities. The Company manufactures protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feed ingredients. The Company also has a grain elevator and transportation network to procure, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, and barley, as well as processed agricultural commodities. Its operations are classified into three business segments: Oilseeds Processing, Corn Processing, and Agricultural Services. The Company has a 50% interest in Edible Oils Limited, a joint venture between the Company and Princes Limited to procure, package, and sell edible oils in the United Kingdom. It also formed a joint venture with Princes Limited in Poland to procure, package, and sell edible oils in Poland, Czech Republic, Slovakia, Hungary, and Austria.

Effective February 11, 2014, Archer Daniels Midland Co acquired an undisclosed minority stake in Rennovia Inc. In June 2014, the Company acquired remaining minority interest of Alfred C. Toepfer International. In June 2014, Archer Daniels Midland Co , acquired the remaining 20% interest in Alfred C Toepfer International GmbH, a Hamburg-based wholesaler of agricultural commodities, from Union Invivo CAACV.

Oilseeds Processing

The Oilseeds Processing segment includes activities related to the origination, merchandising, crushing, and further processing of oilseeds, such as soybeans and soft seeds (cottonseed, sunflower seed, canola, rapeseed, and flaxseed) into vegetable oils and protein meals. Oilseeds products produced and marketed by the Company include ingredients for the food, feed, energy, and other industrial products industries. Crude vegetable oils produced by the segment’s are sold as is or are further processed by refining, blending, bleaching, and deodorizing into salad oils. Salad oils are sold as is or are further processed by hydrogenating and/or interesterifying into margarine, shortening, and other food products. Partially refined oils are used to produce biodiesel or are sold to other manufacturers for use in chemicals, paints, and other industrial products. Oilseed protein meals are sold to third parties to be used as ingredients in commercial livestock and poultry feeds.

The Oilseeds Processing segment produces natural health and nutrition products and other food and feed ingredients. In North America, cottonseed flour is produced and sold primarily to the pharmaceutical industry and cotton cellulose pulp is manufactured and sold to the chemical, paper, and filter markets. In South America, the Oilseeds Processing segment operates fertilizer blending facilities.

The Company has a 16.4% ownership interest in Wilmar International Limited (Wilmar), a Singapore publicly listed company. Wilmar, is a agribusiness group in Asia, is engaged in the businesses of oil palm cultivation, oilseeds crushing, edible oils refining, sugar, consumer pack edible oils processing and merchandising, specialty fats, oleo chemicals, biodiesel, fertilizers and soy protein manufacturing, rice and flour milling, and grains merchandising. Stratas Foods LLC, a joint venture between the Company and ACH Jupiter, LLC, a subsidiary of Associated British Foods, procures, packages, and sells edible oils in North America. The Company has a 50% ownership interest in this joint venture. The Company is a supplier of agricultural commodity raw materials to Wilmar, Edible Oils Limited, and Stratas Foods LLC.

Corn Processing

The Company’s Corn Processing segment is engaged in corn wet milling and dry milling activities, primarily located in the United States. The Corn Processing segment converts corn into sweeteners, starches and bioproducts. Its products include ingredients used in the food and beverage industry, including sweeteners, starch, syrup, glucose, and dextrose. Dextrose and starch are used by the Corn Processing segment as feedstocks for its bioproducts operations. By fermentation of dextrose, the Corn Processing segment produces alcohol, amino acids, and other specialty food and animal feed ingredients.

Ethyl alcohol is produced by the Company for industrial use as ethanol or as beverage grade. The Corn Processing segment also includes amino acids such as lysine and threonine that are vital compounds used in swine feeds to produce leaner animals and in poultry feeds . Corn gluten feed and meal, as well as distillers’ grains, is produced for use as animal feed ingredients. Corn germ, a by-product of the wet milling process, is further processed into vegetable oil and protein meal. Other Corn Processing products include citric and lactic acids, lactates, sorbitol, xanthan gum and glycols, which are used in various food and industrial products. The Corn Processing segment includes the activities of a propylene and ethylene glycol facility and the Company's Brazilian sugarcane ethanol plant and related activities.

Almidones Mexicanos S.A., in which the Company has a 50% interest, operates wet corn milling plants in Bulgaria, Hungary, Slovakia, and Turkey. The Company has a 40% ownership interest in this joint venture in Red Star Yeast Company, LLC, which produces and sells fresh and dry yeast in the United States and Canada.

Agricultural Services

The Agricultural Services segment utilizes its United States grain elevator and global transportation network to buy, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and barley, and resells these commodities primarily as food and feed ingredients and as raw materials for the agricultural processing industry. Agricultural Services’ transportation network capabilities include truck, rail, barge, port, and ocean-going vessel handling and freight services. The Agricultural Services segment also includes the activities related to the origination and processing of wheat into wheat flour, the processing and distribution of formula feeds and animal health and nutrition products, and the procurement, processing, and distribution of edible beans. Alfred C. Toepfer International (Toepfer), in which the Company has an 80% interest, is a global merchandiser of agricultural commodities and processed products. Toepfer has 38 sales offices worldwide and operates inland, river, and export facilities in Argentina, Romania, Ukraine, and the United States. The Company has a 45% interest in Kalama Export Company, a grain export elevator in Washington.

Other

Other includes the Company’s remaining processing operations primarily its financial business units, related principally to futures commission merchant activities and captive insurance. Captive insurance, which includes Agrinational Insurance Company (Agrinational), a wholly owned subsidiary of the Company, provides insurance coverage for certain property, casualty, marine, credit, and other miscellaneous risks of the Company and participates in certain third-party reinsurance arrangements. On September 30, 2011, the Company sold a majority ownership interest of Hickory Point Bank and Trust Company, fsb (Bank).

Company Address

Archer Daniels Midland Co

4666 E Faries Pkwy
DECATUR   IL   62526-5630
P: +1217.4245200
F: +1302.6555049

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