ADM uniquely positioned for leadership in evolving markets
Archer Daniels Midland Company (NYSE: ADM) today outlined its strategy
to be the global leader in BioEnergy while expanding its premier
position in the agricultural processing value chain.
“ADM is uniquely positioned at the intersection of the world’s
increasing demands for both food and fuel,” said Patricia Woertz, ADM
CEO and President. “As one of the largest agricultural processors in the
world and the largest biofuels producer in the world, ADM is in a
category of one to capitalize on the exceptional opportunity ahead.”
The ADM leadership team made presentations to financial analysts today
in Chicago. “We are implementing a strategic program that will drive
both long-term growth and returns by capitalizing on our global
strengths and the changing dynamics of the global energy and food
markets,” Woertz said.
“We see our Company distinguished by five global core strengths: our
origination, storage and transportation operations across the supply
chain; our global agricultural processing footprint; our diversified
product portfolio; our experienced management team; and our financial
strength to manage for returns and growth through business cycles,”
“We have identified three strategic areas that offer the highest
potential for significant, value-added growth: expansion of the
geographic scope of our core model, diversification of our feedstocks
and growth of the BioEnergy business,” stated Woertz.
“Technology and innovation are key to driving growth in these areas.”
Woertz also announced that the Company is considering expansion of its
origination presence in palm in Indonesia, sugar in Brazil and other
carbohydrates around the world for the production of biofuels.
ADM reaffirmed its commitment to the future of ethanol and to investment
in research and development surrounding feedstocks like biomass crops.
Already announced BioEnergy plans include expansion of biodiesel
production capacity in the United States, Brazil and Germany, as well as
an increase of 50 percent in U.S. ethanol production capacity. ADM also
previously announced plans to open a PHA natural plastics plant and a
polyols facility to expand the Company’s industrial applications line.
In October, the Company broke ground on a state-of-the-art cocoa
processing facility. ADM is also considering growing its processing
investment in China and increasing origination capacity in Brazil.
Woertz said that ADM’s growth strategy – and ongoing operations – will
be supported by strategic focus areas and management initiatives to
align people, processes and investments toward achieving the Company’s
goals. The initiatives include: capital investment screening; project
management; performance metrics; development milestones; and
Woertz closed her presentation: “We have shared with you the opportunity
we see in our key agricultural feedstocks, in the biofuels we produce
and in the global infrastructure that gives us competitive distinction
and underpins our unique positioning for the future.”
Archer Daniels Midland Company (ADM) is a world leader in BioEnergy and
has a premier position in the agricultural processing value chain. ADM
is one of the world’s largest processors of soybeans, corn, wheat and
cocoa. ADM is a leading manufacturer of biodiesel, ethanol, soybean oil
and meal, corn sweeteners, flour and other value-added food and feed
ingredients. Headquartered in Decatur, Illinois, ADM has over 26,000
employees, more than 240 processing plants and net sales for the fiscal
year ended June 30, 2006 of $37 billion. Additional information can be
found on ADM’s Web site at www.adm.com/.
Editor’s Note: Today’s analyst presentation is available on the
Investor Relations page of the Company’s Web site.
Safe Harbor Statement
Some of our comments constitute forward-looking statements that reflect
management’s current views and estimates of future economic
circumstances, industry conditions, company performance and financial
results. The statements are based on many assumptions and factors,
including availability and prices of raw materials, market conditions,
operating efficiencies, access to capital and actions of governments.
Any changes in such assumptions or factors could produce significantly
different results. To the extent permitted under applicable law, the
Company assumes no obligation to update any forward-looking statements
as a result of new information or future events.
ADM Media Relations