ADM CFO: Economic Downturn May Create Acquisition Opportunity
February 17 2009 - 5:56PM
Dow Jones News
Archer Daniels Midland Co. (ADM) may take advantage of the
economic downturn to buy heavily discounted assets, Chief Financial
Officer Steve Mills said Tuesday.
Potential deals could bring ADM into new business areas, like
ocean-shipping.
"We believe that the current economic downturn may provide us
with opportunities to grow our global footprint in an economic
way," he said, addressing the annual conference of the Consumer
Analyst Group of New York, in Boca Raton, Fla.
ADM, a large user of ocean freight, has opted not to own its own
fleet of ocean-faring ships in the past. The company is analyzing
the possible purchase of a small fleet, Mills said.
ADM also has the opportunity to buy assets in its established
businesses at a fraction of their full value, Mills said. He noted
that many U.S. corn-based ethanol plants are currently distressed,
but said ADM sees long-term value in producing the fuel.
Acquisitions in any part of ADM's business would be based on the
idea that global agribusiness will become increasingly profitable
as the economy improves.
"It's not about meeting this quarter or this month, but about
meeting longer-term demand at an absolutely great price," said
Chief Executive Patricia Woertz, speaking at the conference.
-By Jessica Resnick-Ault, Dow Jones Newswires, 201-938-4435;
jessica.resnick-ault@dowjones.com