ADM Plans to Invest $196 Million in Iowa Grain Plant Updates
Archer Daniels Midland plans to invest $196 million in its grain processing plant in Clinton, Iowa. The Quad-City Times reports the project will update the machinery inside the plant and expand the facility. ADM spokeswoman Jackie Anderson says the mill produces a variety of corn products, including corn sweeteners, beverage alcohol, ethanol and animal feed. The plant employs more than 750. The project will receive more than $8 million in state and local tax credits. Work on the expansion is expected to begin this year and continue into 2022.
ADM REPORTS 4TH QUARTER RESULTS
ADM posted better-than-expected fourth-quarter earnings. ADM’s mixed performance for the fourth-quarter was helped by higher profits in agricultural services and corn processing. ADM also benefited from U.S. tax reform, posting a net estimated $379 million quarterly benefit related to the new federal tax law. The company reported a net profit of $788 million, or $1.39 per share, up from $424 million, or 73 cents per share, a year earlier. ADM said profit from its agricultural services business jumped nearly 23 percent to $301 million last quarter, helped by higher marketing and insurance income.However, total revenue fell 2.6 percent to $16.07 billion in the three months ended Dec. 31, amid continued sluggish demand for U.S. grains.
Chicago-based ADM, which buys, stores and ships commodity crops, has been trying to invest in higher-margin businesses to boost earnings in a volatile commodity market. ADM has proposed a takeover of New York-based aggribusiness giant Bunge, which could set up a bidding war with Swiss-based rival Glencore Plc. ADM’s Chief Executive Officer Juan Luciano told analysts on a call that the company would not discuss recent media reports about ADM making a take-over approach of rival Bunge Ltd., Reuters reported.
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