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US: Low profits trigger asset sale talks

By  |  August 2, 2016

U.S. grain trader Archer Daniels Midland Co is pulling back in ethanol and exploring sales of its corn dry mills that produce the biofuel, the company announced after reporting a lower second-quarter profit due partly to weak ethanol results.

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    Chicago-based ADM, one of the world’s top ethanol makers, has made presentations to seven potential buyers and expects bids for the ethanol assets by the end of the month.

    “We’ve been very open-minded in terms of what alternatives we would consider, whether it be a sale, whether it be joint ventures or whether it be some other structures there,” said Chief Financial Officer Ray Young.

    ADM’s second-quarter earnings fell short of expectations as volatile grain prices and weak trading and processing margins dragged down results.

    Full Content: Reuters

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