Latest news with #Archer-Daniels-Midland
CNBC
17-07-2025
- Business
- CNBC
Shares of high fructose syrup producer ADM tumble after Trump says Coca-Cola agrees to use real cane sugar
Shares of high fructose syrup producer Archer-Daniels-Midland plummeted on Thursday after President Donald Trump announced that he had persuaded Coca-Cola to use real cane sugar in its drinks in the U.S. "I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so. I'd like to thank all of those in authority at Coca-Cola," the president wrote in a Truth Social post published Wednesday. "This will be a very good move by them — You'll see. It's just better!" Trump also wrote. In premarket trading, ADM shares were recently down nearly 3%. But the stock tumbled as much as 6% on the comments. Other related stocks also fell, including global ingredients provider Ingredion, which lost more than 7%. The move comes as the stock has seen gains over the past few months, having risen about 13% over the last three. It's also up nearly 7% year to date. When asked about Trump's announcement, Coca-Cola did not explicitly agree to the change. "We appreciate President Trump's enthusiasm for our iconic Coca-Cola brand," the company said in a statement. "More details on new innovative offerings within our Coca-Cola product range will be shared soon." Coca-Cola shares were marginally higher in the premarket Thursday, rising 0.3%. Shares have also risen more than 11% year to date, outperforming the broader market. Meanwhile, Corn Refiners Association, an industry trade group, issued a statement warning about the potential job losses that could follow such a switch. "Replacing high fructose corn syrup with cane sugar doesn't make sense," John Bode, the group's president and CEO said. "President Trump stands for American manufacturing jobs, American farmers, and reducing the trade deficit. Replacing high fructose corn syrup with cane sugar would cost thousands of American food manufacturing jobs, depress farm income, and boost imports of foreign sugar, all with no nutritional benefit." The Trump administration has previously called on food companies to reformulate products, with Health and Human Services Secretary Robert F. Kennedy Jr. telling executives earlier this year that he wants "the worst ingredients" out of food.
Yahoo
12-06-2025
- Business
- Yahoo
ADM sets off 'frenzy' in US soybean market ahead of new biofuel blend rule
By Tom Polansek and Karl Plume CHICAGO (Reuters) -Archer-Daniels-Midland, a major U.S. soybean crusher and biofuel producer, slashed its bids to buy the oilseed this week ahead of an expected Trump administration announcement on biofuel blending requirements, a primary driver of demand for soybean oil. Processors such as Chicago-based ADM have been waiting for the U.S. Environmental Protection Agency's decision on blending requirements for months as they grapple with slumping crush margins and abundant soybean stocks. Reuters reported on Thursday that the EPA is expected to propose blending requirements below industry recommendations on Friday, leading to lower-than-expected demand for soyoil to be used in biofuels. ADM said in an emailed statement to Reuters on Thursday that it does not have insight around the pending blending announcement beyond publicly available information and that it independently sets its basis bids, which is the difference between futures and a local cash price to take possession of the grain immediately. The company on Wednesday rolled its cash basis bid at its flagship Decatur, Illinois, facility to 20 cents below the Chicago Board of Trade November soybean futures price from 22 cents over July futures. The roll to November futures, which closed at a 15-cent discount to July on Thursday, lowered the local cash price by about 60 cents a bushel, representing an unusually sharp 6.5% drop in the price offered to farmers. ADM also rolled basis bids at its other crushing facilities, and some rival processors, including Cargill, followed ADM on Thursday. Other processors kept their basis bids against the July futures contract, but lowered basis values by up to 15 cents. "ADM Decatur put the bean market in a frenzy," agriculture trading company John Stewart and Associates said in a note. Falling basis values reflect expectations for a large autumn harvest and weak demand that has eroded processing margins for companies that crush beans into soymeal livestock feed and soyoil used for cooking and producing biofuels. Crush margins have struggled as a recent jump in U.S. processing capacity has swelled available supplies of meal and oil and pressured prices for the soy products. Tariff worries and unclear U.S. biofuels policies have stoked further unease among crushers and biofuel makers, and some biodiesel producers have scaled back or idled plants. ADM said in April it would permanently close a South Carolina soybean processing plant to cut costs. "Cash crush margins stink, and there is a bunch of downtime scheduled for July," said Charlie Sernatinger, executive vice president for Marex Capital Markets. Diana Klemme, vice president of Grain Service Corp in Atlanta, which serves agricultural hedgers in the futures markets, sent an alert to customers after seeing ADM's bid adjustments. She said that she had never seen a move to new-crop basis levels in June in more than 50 years in the grain business. "I said check your markets carefully because ADM just dropped all their bids 40-75 cents a bushel and went to new-crop values," Klemme said. The November futures contract represents the autumn harvest price, or the new crop. Farmers have been reluctant to sell crops to processors because they want higher prices, while processors avoided raising bids to protect their thin margins.
Yahoo
21-05-2025
- Business
- Yahoo
5 Dividend Kings with sky-high yields above 4%
Dividend investing can be a great way to generate passive income from your investment portfolio, but identifying the best dividend stocks can be a tricky process. One approach involves looking at the stocks that qualify as Dividend Kings, which means they've increased their dividend for at least 50 consecutive years. In general, Dividend Kings have been successful companies that generate consistent profits for their shareholders that they share in the form of dividends. Here are five Dividend Kings that have yields above 4 percent as of May 2025. If you're looking for ways to generate income from your investment portfolio, it may make sense to work with a financial advisor. To get started, Bankrate's AdvisorMatch tool can help you find an advisor in your area. Company Dividend yield Altria Group (MO) 6.86 percent Stanley Black & Decker (SWK) 4.64 percent Target Corp. (TGT) 4.57 percent PepsiCo (PEP) 4.32 percent Archer-Daniels-Midland (ADM) 4.08 percent Note: Yield data as of May 20, 2025. Altria is the name behind Marlboro cigarettes, one of the most recognized and popular tobacco brands in the world, and the company also owns a sizable stake in Anheuser-Busch InBev. Altria's management has stated for years that it intends to pay out the vast majority of its earnings as dividends. Market cap: $100.2 billion Dividend yield: 6.86 percent Stanley Black & Decker is a global provider of hand tools, power tools, outdoor products and accessories. The company generated 2024 revenue of $15.4 billion. The company says it is committed to returning capital to shareholders through a strong and growing dividend, as well as opportunistic share repurchases. Market cap: $10.9 billion Dividend yield: 4.64 percent Target is one of the largest retailers in the U.S. and aims to offer differentiated merchandise and everyday essentials at discounted prices for its customers. The Minneapolis-based company generated $106.6 billion in revenue during its 2024 fiscal year. Market cap: $44.5 billion Dividend yield: 4.57 percent Need an advisor? Need expert guidance when it comes to managing your investments or planning for retirement? can connect you to a CFP® professional to help you achieve your financial goals. PepsiCo is a global food and beverage company that owns a portfolio of well-known brands, such as Pepsi-Cola, Mountain Dew, Gatorade, Lay's, Dorito's, Cheetos, Quaker and more. The company sells to consumers in more than 200 countries and territories. Market cap: $180.7 billion Dividend yield: 4.32 percent Archer-Daniels-Midland is a global agricultural supply chain manager and processor that processes various agricultural products for industries, such as food and beverage, industrial, animal feed and more. The company generated $85.5 billion in revenue during 2024. Market cap: $24.0 billion Dividend yield: 4.08 percent Dividend stocks are a great way to generate investment income while still having the potential for growth. There are generally two ways to invest in dividend stocks. Buy stocks that pay dividends: Many stocks pay dividends to shareholders, and it can be rewarding to own individual stocks. However, you'll want to make sure you understand each company before buying shares. Dividends aren't guaranteed, and you'll have more risk if you just own a few stocks compared to a diversified fund. Buy dividend funds: Dividend funds invest in stocks that pay dividends, essentially doing the research for you. Dividend funds tend to focus on stocks with either high dividend yields, or growing dividends. The best dividend funds often come with low expense ratios, which means more of the return ends up in your pocket. Dividend stocks can be a great choice for investors seeking investment income, and Dividend Kings have consistently increased their payouts over the course of 50 years or more. If you're looking for more ways to generate income from your investments, you may want to consult with a financial advisor, who can help you devise a plan based on your risk tolerance, time horizon and individual needs. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. Sign in to access your portfolio
Yahoo
06-05-2025
- Business
- Yahoo
ADM Rakes In $85.5 Billion--But Only 2% Sticks
Archer-Daniels-Midland (NYSE:ADM) is still a revenue machinehauling in $85.5 billion last yearbut that headline number hides a much thinner reality. Cost of goods sold ate up a whopping 93% of revenue, and after another $3.7 billion in SG&A, the company was left clinging to a 2.1% net income margin. That's barely any oxygen to breathe. ADM knows it too. Management is now in execution modecutting up to 700 jobs in 2025 with the goal of trimming $750 million in costs. The hope? Streamline operations, widen margins, and shift the company away from low-efficiency bloat. But that's only one side of the pressure cooker. The other? Trade tensionsand they're hitting ADM right where it hurts. Q1 earnings came in at just $0.70 per share, down from $1.46 last year, marking the company's weakest first-quarter performance in five years. Ag Services and Oilseeds, ADM's biggest business line, saw operating profit crater by 52%. Global crop oversupply and weak processing margins continue to squeeze returns. Add a still-simmering accounting scandal and federal probes into the mix, and investors have every reason to stay cautious. Shares have dropped nearly 30% since the scandal broke in early 2024, although the recent 2.65% bounce at 12.20pm today shows Wall Street was bracing for worse. ADM reaffirmed its full-year EPS forecast of $4 to $4.75but flagged that it's more likely to land at the low end. Translation: management is still optimistic, but not overly so. With cost cuts underway and its nutrition segment showing signs of life, there's a path forwardbut it's narrow. Investors should keep a close eye on how fast ADM executes, especially in a volatile trade and regulatory environment. This article first appeared on GuruFocus.
Yahoo
06-05-2025
- Business
- Yahoo
Archer-Daniels-Midland (NYSE:ADM) Q1 Earnings Decline to US$295 Million as Sales Drop
Archer-Daniels-Midland recently reported a significant decline in their first-quarter earnings, with sales decreasing to USD 20,175 million and net income falling sharply to USD 295 million. Despite these results, ADM's share price saw a 10% rise over the past month, slightly outperforming the market, which climbed 2% during the same period. This movement could be seen as contradictory amid the broader market's response to earnings reports and tariff uncertainties. Nevertheless, the broader optimism in equity performance and expectations for corporate earnings growth might have supported ADM's share gains. We've spotted 2 warning signs for Archer-Daniels-Midland you should be aware of. NYSE:ADM Earnings Per Share Growth as at May 2025 Uncover 15 companies that survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Archer-Daniels-Midland's recent earnings decline and the contrasting 10% share price rise illustrate a complex landscape for this agricultural giant. While lower earnings saw ADM's net income decrease to US$295 million and sales drop to US$20.18 billion, the company's share price still managed to outperform the broader market over the past month. This recovery in share price may be fueled by positive sentiment around its strategic focus on operational improvements and growth investments, such as biosolutions, aimed at enhancing margins and future revenue. Over a longer five-year period, ADM's total return, including dividends, was a significant 53.85%, showcasing a robust performance when viewed against recent fluctuations. Despite underperforming the market, which returned 8.2% last year, ADM continues to show potential for growth. Analysts anticipate a modest revenue growth of 2.6% annually and expect earnings to reach US$2.3 billion by April 2028, supported by strategic initiatives and targeted cost actions. Nevertheless, regulatory uncertainties and competitive pressures remain key risks that could impact these forecasts. Furthermore, significant deviations in share performance indicate the market's mixed sentiment. With ADM's current share price closely aligned with the consensus target of US$49.73, the limited pricing gap suggests analysts see it as fairly valued, though individual projections vary. This ongoing appraisal hinges on ADM achieving anticipated earnings growth and maintaining an acceptable price-to-earnings ratio of 11.3x by 2028. Investors weighing these factors should consider ADM's position relative to industry challenges and emerging opportunities to discern whether its current valuation accurately reflects future prospects.
