World Grain - December 2018 - 14

NEWSREVIEW

ADM income soars behind strong oilseeds and origination results
CHICAGO, ILLINOIS, U.S. - Archer Daniels Midland Co. capitalized on robust global demand through solid execution and utilization
of its global footprint, posting strong third-quarter results.
ADM net income in the period ended Sept. 30 was $536 million,
equal to 94¢ per share on the common stock, up 179% from $192
million, or 34¢ per share, in the third quarter of 2017. Net sales were
$15.8 billion, up 6.5% from $14.827 billion. Adjusted for special
items in the prior-year period, 2018 third-quarter earnings per share
were up 104%.
"While delivering another strong quarter, the team also did a great
job advancing our strategic plan, executed on key growth projects
and accelerating our readiness efforts as we build the foundation
to take our performance even higher," Juan R. Luciano, chairman,
president and CEO, said during a Nov. 6 conference call. "Looking
back on some of our key accomplishments... In optimizing the core,
our South American Origination team manages risk positions well,
including the Brazilian freight situation, and is up substantially yearto-date over 2017. We continued to optimize our North American
Origination footprint, monetize our investment in Agrible, and as
mentioned last quarter, we completed the divestiture of our Bolivian
2LOVHHGVEXVLQHVVGXULQJWKHTXDUWHU,QRXUHIIRUWVWRGULYHHI¿FLHQcies, our operational excellence initiatives have delivered cost savLQJVRIPRUHWKDQPLOOLRQRQDUXQUDWHEDVLVRYHUWKH¿UVWWKUHH
quarters of the year, already meeting our full-year 2018 target."
$'0¶V2ULJLQDWLRQVHJPHQWSRVWHGRSHUDWLQJSUR¿WRIPLOlion in the third quarter, up 231% from $39 million in the same period a year ago. Sales were $5.850 billion, up 6%.
Looking ahead, Ray G. Young, executive vice-president and
FKLHI¿QDQFLDORI¿FHUVDLG$'0H[SHFWV1RUWK$PHULFDQRSHUDtions to be pressured by lower elevation margins due to sluggish
demand from China. Overall, though, fourth-quarter results at

ADM are expected to be solid, Young said.
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up 208% from $113 million in the same period last year. Sales were
$6.410 billion, up 12%.
Young said ADM set a new overall record for global crush volXPHV GXULQJ WKH WKLUG TXDUWHU 5H¿QLQJ SDFNDJLQJ ELRGLHVHO DQG
other was down versus the prior-year period.
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of $288 million, was down 4% from $300 million in the third quarter
last year. Sales were $2.534 billion, down 3%. Flour milling results
were higher during the quarter on strong wheat procurement results
and timing effects in both the United States and Canada, Young said.
Year-to-date net income at ADM was $1.495 billion, or $2.64 per
share, up 85% from $807 million, or $1.41. Revenues were $48.394
billion, up 8% from $44.758 billion.
Luciano said ADM has made more than $5 billion in growth investments since 2014. The company has launched six new plants
globally, purchased an integrated 17 companies, formed four new
MRLQWYHQWXUHVDQGDGGHG¿YHQHZLQQRYDWLRQFHQWHUVDQGODERUDWRries. The company also has divested more than $2 billion in businesses and assets that it has deemed less strategic.
"We made many of our investments during times of strong industry headwinds, while still returning more than $8 billion in capital to
shareholders, executing our balanced capital allocation framework
and maintaining our solid balance sheet," he said. "And what really
JLYHVPHFRQ¿GHQFHDERXWWKHIXWXUHLVWKDWZKLOHPDQ\RIWKHVHVWUDWHJLFLQYHVWPHQWVKDYHDOUHDG\EHJXQWRGHOLYHUEHQH¿WVDQGEHDFcretive to our results, the full impact of some of the recent ones is still
coming. And when you are soon to close deals like Neovia and Algar
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will continue to add to growth in earnings in 2019 and beyond."

Grain Craft completes flour mill modernization project
CHATTANOOGA, TENNESSEE, U.S. - Grain Craft, the nation's
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year-long improvement project to expand and upgrade areas of its
ÀRXUPLOOLQ0F3KHUVRQ.DQVDV867KHVHLPSURYHPHQWVZHUHLPplemented to increase warehouse storage and to enhance both packLQJDQGORDGLQJHI¿FLHQF\IRUWKHPLOO*UDLQ&UDIWVDLG
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companies Grain Craft. This expansion marks the largest in the mill's
history. The second largest expansion occurred in 1995 with the addition of the second mill.
"The driving factor for this important investment is Grain Craft's
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Frederick, president of Grain Craft. "The strategic improvements we
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our ability to provide a high level of service to our customers."
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one included a shipping area, packing line, robotic palletizing line
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robotic palletizers. In addition to the warehouse expansion, the mill
added a new wheat unloading facility. This new facility features a
high-speed wheat receiving pit with a dump-through scale that accommodates trucks to unload wheat and weigh simultaneously - alORZLQJWUXFNVWRXQORDGTXLFNO\DQGHI¿FLHQWO\
14

Grain Craft's recently renovated flour mill in McPherson, Kansas, U.S.
Photo courtesy of Grain Craft.
During the expansion, Grain Craft added new equipment in variRXV DUHDV RI WKH 0F3KHUVRQ PLOO WR LQFUHDVH SURGXFWLYLW\ HQKDQFH
safety for the employees and solidify the ability to meet current and
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SDFNDJLQJPLOOZKLFKLQÀXHQFHGWKHHTXLSPHQWXSJUDGHRIPXOWLSOH
new packing lines and robotic palletizers. Grain Craft said these adGLWLRQVKDYHLPSURYHGSDFNLQJDQGORDGLQJFDSDELOLWLHVVLJQL¿FDQWO\
7KHFRPSDQ\FRQWLQXHVWRPLOODQGSDFNWKHRULJLQDO:5ÀRXUVROG
by Wall-Rogalsky.
December 2018 / World Grain / www.World-Grain.com

http://www.World-Grain.com

World Grain - December 2018

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