World Grain - March 2018 - 15

ADM earnings improve on cost, capital initiatives
CHICAGO, ILLINOIS, U.S. - Against
the backdrop of a possible takeover of
Bunge, Archer Daniels Midland Co. (ADM)
reported improved earnings for 2017 and the
fourth quarter ended Dec. 31, 2017.
For the year, the company posted net
earnings attributable to ADM of $1.6 billion,
up from $1.3 billion in the prior year. For the
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year earlier.
"We ended 2017 with a solid fourth
quarter," said Juan Luciano, chairman and
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levers under our control - including cost
and capital initiatives and interventions
throughout the year - to deliver value for
shareholders.
"For 2017 as a whole, we grew earnings
per share, improved returns on invested
capital and generated positive EVA.
Looking ahead, we expect improving results
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Our increasing international presence, and
expanding capabilities in areas such as
destination marketing, food and beverage
innovation, and health and wellness, all help
to position ADM for continued growth and
value creation."
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billion. For the quarter, revenue decreased
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The company made no mention of a
possible takeover bid for Bunge in its
earnings release and Luciano said he would
not comment during a Feb. 6 conference call
with analysts.
The Wall Street Journal on Jan. 19
said ADM has approached Bunge about a
possible takeover bid. The Journal suggested
a bidding war between ADM and Glencore
PLC, Baar, Switzerland, which made a
takeover bid for Bunge in May 2017.
However, Luciano highlighted four
components that will help the company in
the coming year, including growth initiatives
both organically and through mergers and
acquisitions, "particularly on the right-hand
side of the value chain."
Investments will be strategic, he said,
because the company wants to invest to plug
holes in its value chain, not just to be big.
"We have a good base from this quarter
and this year in which to build, and we are
looking for a year of solid earnings and EPS
growth," Luciano said.
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www.World-Grain.com / World Grain / March 2018

and $261 million, respectively. Sweeteners
and Starches had another strong quarter,
with solid earnings growth over the prior
year in both North America and EMEA.
Lower year-over-year results in Bioproducts
due to lower ethanol margins were partially
mitigated by favorable risk management,
ADM said.

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Crushing and Origination results were
lower due to weak crush margins, despite
strong crush volumes and continued growth
in demand. Origination results in South
America were impacted by weak margins.

15
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World Grain - March 2018

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