ADM reviews growth strategy with investors

DECATUR, Ill.

Archer Daniels Midland Co. said Tuesday it is poised for growth through acquisitions and expansion of existing business and it is likely to resume its stock buyback program.

Company officials discussed the company's growth strategy with investors at the Deutsche Bank 7th Annual Global Consumer Conference in Paris.

The Decatur, Ill.-based company saw income soar in the fiscal third quarter ending in March as global demand for U.S. soybeans and the company's oilseeds products grew. Its struggling ethanol business also has experienced some recovery with lower corn prices and better ethanol profit margins.

ADM reported last month it earned $421 million, or 65 cents per share, compared with just $3 million, or breakeven per share, a year ago.

In Tuesday's presentation, Chief Financial Officer Steve Mills said the company is aggressively pursuing profitable growth by advancing efforts to expand the types and volumes of crops it originates and processes. The company's global reach is also expanding, he said.

"We will use our enhanced financial flexibility to expand the asset base, to buy shares, or to do both," he said. "The ultimate size of the buyback will depend on a variety of factors including share price and market conditions."

ADM's profitable growth strategy has previously included additions to its transportation network, its oilseeds processing footprint, its ethanol production capacity and its slate of renewable chemicals.

The company employs 28,000 workers in more than 60 countries.

Shares rose 70 cents, or 2.7 percent, to $26.35 in early afternoon trading.