World Grain - November 2023 - 10

NEWS REVIEW
ADM earnings soften in third quarter
CHICAGO, ILLINOIS, US - Weaker-than-expected operating
profit in the company's Ag Services and Oilseeds
segment and Nutrition more than offset a strong quarter in
Carbohydrate Solutions, leading to an earnings decline at
ADM in the third quarter.
" The global market is increasingly dynamic with factors
that create both opportunities and challenges for ADM to address, "
Juan R. Luciano, chairman, president and chief executive
officer, said during an Oct. 24 conference call with
analysts. " Consumer behavior has shown growing variability
spending more in some categories while slowing spending in
others. And our team has a proven ability to manage through
this and the impact of geopolitical tensions, inflationary pressures
and the constantly adjusting balances of commodity
supply and demand.
" Within each business, we are focused on navigating these
external factors carefully while we're also building on the
momentum we've seen through the year-to-date. As we look
ahead, we are on track to exceed our 2023 previous expectations
for the total company. "
Net earnings attributable to ADM in the third quarter ended
Sept. 30 totaled $821 million, equal to $1.52 per share on
the common stock, down 21% from $1.03 billion, or $1.83
per share, in the same period a year ago. Fiscal 2023 thirdquarter
results included a 10¢ per share charge related to impairments
and restructuring, and a 1¢ per share charge related
Louis Dreyfus JV in China completes first phase
GUANGZHOU, CHINA - The first phase of construction
has been completed for a new 180,000-square-meter food industrial
park in Nansha, Guangzhou, China, a joint venture
of Louis Dreyfus Co., Donlink Holding Group (Donlink) and
Guangdong HAID Group (HAID).
Located at the center of the Guangdong-Hong Kong-Macao
Greater Bay Area, Fuling Food Industrial Park will be operated
by Fuling Food Technology Co. Ltd., the JV established
by the three companies in 2020 with an expected total investment
of $1 billion and annual output value of $3.1 billion.
The location includes a feed protein mill with annual soy
to acquisition expenses. Adjusted earnings totaled $880 million,
or $1.63 per share, down from $1.05 billion, or $1.86 per
share, in the same period a year ago.
Revenues for the third quarter decreased 12% to $21.7 billion
from $24.68 billion.
Operating profit in the Ag Services and Oilseeds segment
fell 21% to $848 million in the third quarter, down from $1.08
billion in the same year-ago quarter. Ag Services profit eased
23% in the quarter to $226 million, down from $292 million,
while crushing profit decreased 28% to $250 million from
$346 million.
processing capacity of 1.8 million tonnes, a vegetable oil refining
mill with annual production capacity of 360,000 tonnes
and a high-end cooking oil production line with annual bottling
capacity of 240,000 tonnes. The site also includes a
packaged cooking oil warehouse, a lecithin production line,
soybean oil tanks and a soybean meal warehouse.
State-of-the-art equipment and technologies at the facilities
are expected to help secure food, feed and ingredient supply
chains, with a focus on developing and producing plant-based
food products and ingredients that meet consumer demand for
safe, high-quality and nutritious products.
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November 2023 / World Grain / www.World-Grain.com
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World Grain - November 2023

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