Archer Daniels Midland Case Study - revised

Archer Daniels Midland Case Study - revised - Archer...

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Archer Daniels Midland Case Study Archer Daniels Midland Company is one of the world’s leading agricultural processors. ADM operates more than 270 plants worldwide which includes the United States, Europe, Middle East, Africa, and Asia Pacific. ADM’s business consists of transporting, storing, processing and merchandising agricultural commodities and products. They are processors of oilseeds, corn, and wheat. With processing corn it produces: syrups, sweeteners, citric and lactic acids and ethanol, among other products. And also produces wheat flour for bakeries and pasta makers, cocoa and chocolate for confectioners, animal feed ingredients for farmers, and malt for brewers. Company History Archer-Daniels Midland Company (ADM) began in the year of 1923 after George A. Arthur and John W. Daniels began a linseed crushing business. Every decade since its inception, ADM has added a major profit center to the corporation. There is milling, processing, specialty
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feed ingredients, specialty food ingredients, cocoa, nutrition and more. It is considered as the world wide transportation network that continues to have more than 240 work locations. ADM continues to partner with farmer and the agriculture to create more markets for their products. In 1924, John W. Daniels left his position as president, and became chairman. This gave Shreve M. Archer the opportunity to become the new president of the company. From 1925 and 1928, ADM built its first concrete grain elevator in Minneapolis. They also purchased the Armour Grain Company, forming ADM’s grain division. By that time, ADM had a record of $8.036 per share earnings. In 1929, ADM purchased the Werner G. Smith Company of Cleveland, Ohio, which was considered to be the largest manufacturer of core oils. ADM also began crushing soybeans in its Toledo and Chicago plants, giving them the lead in rapid development of soybeans in the U.S. By 1931, John W. Daniels passed away. George A. Archer is named Chairman, but he too passes away the following year. From 1932-1947, ADM’s president Shreve Archer serves as Chairman; however, he did carry the title. Between 1933 and 1939, ADM began manufacturing formula feeds and installed the first continuous solvent extraction unit in the United States at their Chicago plant. The company achieved a record net profit after income tax and depreciation, referred to as net earnings, of $2,525,745. The company also began the world’s largest solvent extraction plant in Decatur, Illinois. Between 1940 and 1959, research grows rapidly and allows new products to be developed. Raw linseed and crude soybean oil were able to be converted into several hundred different products. Current assets reached approximately $50,284,312 with average sales of $183,255, 175. Net sales and other operating income had increased up to $297,429,912 and created net earnings of $15 million. The cost of property and plant exceeded over $50 million for
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the first time, making the number of ADM employees to grow to over 5,000. During this time,
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This note was uploaded on 02/19/2011 for the course MISC 101 taught by Professor Smith during the Spring '11 term at University of Louisiana at Lafayette.

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Archer Daniels Midland Case Study - revised - Archer...

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