Archer Daniels Midland Co. (ADM) will expand its network of
grain elevators and transportation in the Black Sea region, Chief
Executive Patricia Woertz said Tuesday.
Woertz said the expansion would enhance the company's grain
sourcing around the Danube River. The expansion includes 12 river
elevators and an export terminal near the Black Sea. The company
would announce further details later Tuesday, she said in a
conference call following fourth-quarter earnings.
The Black Sea has played an increasingly important role in
global grain trade in recent years. An export ban by Russia last
year helped send grain prices sharply higher, analysts say. Exports
have resumed this year.
The Decatur-Ill.-based company reported fourth-quarter earnings
fell 15%, due largely to higher tax costs. Ray Young, the company's
chief financial officer, said the increase was due to several
factors, including a geographic shift in company earnings to the
U.S., a higher U.S. tax rate, and a stronger-than-expected
Brazilian real at the end of the quarter.
Young also said the company's bioproducts division, which
includes its ethanol production, benefited disproportionately in
2011 from corn hedges. The company noted that higher corn costs
caused reduced profits in ADM's corn processing division in the
quarter.
ADM shares were recently down 4.7% to $29.03.
-By Ian Berry, Dow Jones Newswires; 312-750-4072;
ian.berry@dowjones.com