Archer Daniels Midland Company: SWOT Analysis & Company Profile by BusinessReview

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									Archer Daniels Midland Company

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Archer Daniels Midland Company: SWOT
Analysis & Company Profile


Reference code: BRAE004CP10-Q4

Published: Dec 2010




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Archer Daniels Midland Company - SWOT Profile                                       Page 1
Archer Daniels Midland Company

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Archer Daniels Midland Company - Company Overview

Archer Daniels Midland Company (ADM) is one of the leading agricultural processors in the world. The company is
engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products. It also
processes a range of oilseeds, corn, wheat, cocoa, and other agricultural commodities. In addition, ADM is engaged in
manufacturing corn sweeteners, vegetable oil and protein meal, biodiesel, flour, ethanol, and other food and feed
ingredients. Its operations are organized into three segments, namely Oilseeds Processing, Corn Processing, and
Agricultural Services. The company operates over 240 processing plants and over 330 sourcing facilities in more than 60
countries on six continents. ADM is headquartered in Decatur, Illinois, the US.


Financial Performance

The company reported revenues of (U.S. Dollars) USD 61,682.00 million during the fiscal year ended June 2010 (fiscal
2010), a decrease of 10.87% from 2009. Its revenues recorded a declining compound annual rate of 6.01%, during the
period, 2008-2010. During the fiscal year 2010, its operating margin was 3.84% as against an operating margin of 3.87%
during the fiscal year 2009. Moreover, during the fiscal year 2010, the company’s net profit margin was 3.13% as against
a net profit margin of 2.43% during the fiscal year 2009.




Archer Daniels Midland Company - Key Facts

Archer Daniels Midland Company, Key Facts

                                  4666 Faries Parkway, Decatur,
                                                                    Ticker Symbol, Stock         ADM (New York Stock
Corporate Address:
                                  Illinois (IL), 62526, United States Exchange                   Exchange)



Telephone                         + 1 217 4245200                   No. of Employees             29,300



Fax                               + 1 217 4245447                   Financial Year End           June


                                  www.adm.comen-
URL                               USPagesdefault.aspx
                                                                    Revenue (in USD Million)     61,682.00



Industry                          Alternative Energy

                                  Australia, China, India, Indonesia, Japan, Singapore, France, Germany, Ireland, Netherlands,
                                  Poland, Russian Federation, Switzerland, Ukraine, United Kingdom, Cameroon, Cote d'Ivoire,
Locations
                                  Ghana, Canada, United States, Argentina, Barbados, Belize, Bolivia, Brazil, Dominican Republic,
                                  Grenada, Jamaica, Mexico, Paraguay, Puerto Rico, Trinidad and Tobago
Source: Annual Report, Company Website, Primary and Secondary Research




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Archer Daniels Midland Company - SWOT Profile                                                                            Page 2
Archer Daniels Midland Company

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Archer Daniels Midland Company - Business Description

Archer Daniels Midland Company (ADM) is a processor of oilseeds, corn, wheat, cocoa, and other agricultural
commodities and a manufacturer of vegetable oil and protein meal, corn sweeteners, flour, biodiesel, ethanol, and other
value-added food and feed ingredients. The company procure, store, clean, and transport various agricultural
commodities, including wheat, milo, oilseeds, corn, oats, and barley, as well as processed agricultural commodities
through an extensive grain elevator and transportation network. ADM operates over 240 processing plants and over 330
sourcing facilities in more than 60 countries on six continents. As of September 2010, the company had 29,300
employees.

ADM’s operations are classified into three reportable segments, namely, Oilseeds Processing, Corn Processing and
Agricultural Services.

The company through its Oilseeds Processing segment engages in the origination, merchandising, crushing and further
processing of oilseeds including canola, soybeans, peanuts, sunflower seeds, cottonseed, flaxseed and palm into
vegetable oils and protein meals. These oilseed products are used as ingredients for the food, feed, energy, and other
industrial products industries. It operates 23 domestic and 22 international oilseed crushing plants with a daily processing
capacity of approximately 95,000 metric tons (3.5 million bushels). It also operates thirteen domestic country grain
elevators with an aggregate storage capacity of approximately 8 million bushels and 105 international elevators with
storage capacity of approximately 133 million bushels. The company operates thirteen domestic oilseed refineries and
nineteen international refineries. In addition, it packages oils at ten international plants located in Bolivia, Brazil, England,
Germany, India, Peru, and Poland. Furthermore, the company operates one domestic and six international biodiesel
plants, as well as four fertilizer blending plants in Brazil. During the fiscal year ended June 30, 2010, the segment
contributed 37.4% towards the company’s total revenue.

The Corn Processing segment of the company is engaged in corn wet milling and dry milling activities in the US. It
produces ingredients that are used in the food and beverage industry including starch, glucose, syrup, sweeteners and
dextrose. The company uses dextrose as a feedstock for its bioproducts operations, including the production of amino
acids, ethanol and industrial products. In addition, it produces corn gluten feed and meal, as well as distillers grains for
use as animal feed ingredients. The company’s by-product of the wet milling process, Corn germ is further processed as
an oilseed into vegetable oil and protein meal. It operates five wet corn milling plants and four dry corn milling plants with
a daily grind capacity of about 66,000 metric tons (2.6 million bushels). It also operates five domestic grain terminal
elevators with an aggregate storage capacity of approximately 13 million bushels. In addition, it operates sweeteners and
starches production facilities, a glycols production facility, corn germ extraction plants, a polymer production facility and
bioproducts production facilities in Illinois, Iowa, Minnesota, Nebraska, North Carolina, and North Dakota a well as a
sugarcane processing plant in Brazil. During the fiscal year ended June 30, 2010, the segment contributed 12.9% towards
the company’s total revenue.

The Agricultural Services segment by using ADM’s grain elevator and transportation network buys, stores, cleans and
transports agricultural commodities, such as corn, oilseeds, milo, oats, wheat, rice and barley. These commodities are
resold as food and feed ingredients, and as raw materials for the agricultural processing industry. It operates 150
domestic and 18 international elevators, 27 domestic and seven international formula feed and animal health nutrition
plants, an animal feed facility in Illinois, an edible bean plant in North Dakota, and 23 domestic edible bean procurement
facilities as well as a rice mill in California. During the fiscal year ended June 30, 2010, the segment contributed 41.2%
towards the company’s total revenue.

The Other segment of the company comprises food and feed ingredient businesses and financial activities. It’s food and
feed ingredient businesses engage in the production of wheat flour and chocolate and cocoa products. Its financial
activities include captive insurance, banking, private equity fund investments and futures commission merchant activities.
During the fiscal year ended June 30, 2010, the segment contributed 8.5% towards the company’s total revenue.

Geographically, its operations are organized into three segments, namely United States, Germany and Other Foreign
Countries. During the fiscal year ended June 30, 2010, the company generated 54.1% from United States, 10.4% from
Germany and 35.5% from Other Foreign Countries.

Recently, ADM announced that it acquired all of the outstanding capital stock of Alimenta (USA), Inc., from Alimenta S.A.,
an international trading company in Switzerland.




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Archer Daniels Midland Company - SWOT Profile                                                                           Page 3
Archer Daniels Midland Company

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Archer Daniels Midland Company - Major Products and Services

Archer Daniels Midland Company is principally engaged in procuring, transporting, storing, processing, and
merchandising agricultural commodities and products. The company’s key products and services include the following:

Archer Daniels Midland Company, Major Products and Services
Products:

Food Ingredients

Animal Feed Ingredients

Ethanol

								
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