World Grain - June 2009 - 14

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ADM to increase U.S. wheat flour capacity
DECATUR, ILLINOIS, U.S. - Archer Daniels Midland Co. (ADM)
announced on May 18 that it will increase its North American wheat
flour capacity at three U.S. wheat flour mills in Los Angeles, Minneapolis and Spokane, Washington, by a combined 7,500 cwts per day,
and has modified an existing milling unit at its Buffalo, New York
facility to add soft wheat flour production.
"The expanded capacity will further strengthen ADM's North
American supply network and support regional demand growth," the
company said.
As part of the expansion, ADM said it will expand its Spokane
mill to 12,500 cwts per day from 10,500 cwts per day. Construction
is under way and is expected to be completed in mid-2009, the company said. In Los Angeles, ADM will expand its facility to 11,800

cwts from 10,800 cwts, with the expansion expected to be completed
in mid-2009.
ADM said it will convert one of its existing farina production units
at its Minneapolis mill to handle up to 4,500 cwts per day of white
flour production. The expansion is expected to be completed in early
summer of 2009.
According to the Grain & Milling Annual 2009 published by Sosland Publishing Co., ADM had U.S. wheat flour capacity of 279,400
cwts (a total that will grow to 286,900 cwts with the expansions) at
its 23 U.S. wheat flour mills, making it the largest wheat flour milling company, ranking just ahead of Horizon Milling L.L.C. (a Cargill-Harvest States joint venture) with 275,000 cwts, and ConAgra
Foods, Inc. with 251,100 cwts.

ADM earnings suffer steep decline
DECATUR, ILLINOIS, U.S. - Earnings at Archer Daniels Midland
Co. (ADM) in the third quarter ended March 31 plummeted 98%,
bogged down by a sharp decline in sales and one-time charges related to equity investments. Net income in the quarter ended March 31
totaled $8 million, equal to 1¢ per share on the common stock, down
from $517 million, or 80¢ per share, in the same period a year ago.
The most recent quarterly results included a $132 million noncash after-tax charge related to currency derivative losses of the
company's equity investee, Gruma S.A.B. de C.V., as well as a $97

million income tax charge related to ADM's investment in Wilmar
International Ltd.
Net sales were $14.842 billion, down 21% from $18.708 billion in
the same period a year ago.
"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 Patricia Woertz, chairman, president
and chief executive officer.

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World Grain - June 2009

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