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Archer Daniels' Realigned Business Units Shows Renewed Focus
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Archer Daniels Midland Company (ADM - Free Report) has realigned its business into four segments namely — Carbohydrate Solutions, Nutrition, Oilseeds and Origination — to accelerate growth and resonate well with changing customers’ needs. Earlier, the company used to report operational results under the Agricultural Services, Corn Processing, Oilseeds Processing as well as Wild Flavors and Specialty Ingredients segments. These latest changes will be reflected in its first-quarter 2018 results.
Per the reclassification, the Carbohydrate Solutions segment will comprise the Corn and Milling operations; Nutrition unit will include Animal Nutrition and Bioactives businesses, as well as the Wild Flavors & Specialty Ingredients segment (WFSI); the Oilseeds segment will remain unchanged; and Origination will include the Agricultural Services business, excluding Milling.
The new business segments are expected to clearly differentiate the company’s product and service offerings, while justifying its operating structure. Additionally, these segments will help Archer Daniels provide value-added and exclusive product assortments, thus boosting growth across its business portfolio.
As part of the realignment, management brought to effect some leadership changes, including new heads for the newly formed segments. Additionally, Archer Daniels appointed Joe Taets to the newly created role of senior vice president and president, Global Business Readiness. This is likely to speed up growth at its ongoing Readiness initiative.
The company’s Readiness initiative focuses on curtailing costs, enhancing operational efficiency and standardizing business processes and systems, in order to improve analytics and decision-making across the organization.
Meanwhile, the company has been on track with its strategic plan, which together with the 1ADM plan constitutes the Project Readiness program. Archer Daniels is progressing well with business transformation under its 1ADM program. It expects this project to help management have a more coordinated approach toward driving business improvement, standardizing functions and enriching consumers’ experience. Further, as part of this plan, management intends to allocate resources efficiently on more mature businesses and make prudent business investments. In 2017, the company achieved tremendous success as it rolled out its 1ADM business transformation project in various regions as well as businesses. Archer Daniels remains on track with more 1ADM rollouts in 2018.
Moving ahead, these initiatives are likely to help this Zacks Rank #2 (Buy) company gain competitive edge in the global grains industry by improving margins.
Nevertheless, shares of the company have gained 7.4% in the past three months, faring better than the industry’s 4.7% rally.
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Calavo Growers, Inc. (CVGW - Free Report) , a Zacks Rank #2 stock, pulled off an average positive earnings surprise of 31.6% in the last four quarters.
Limoneira Company (LMNR - Free Report) has outpaced the earnings estimates in the trailing four quarters by an average of 14.1%. Also, the stock carries a Zacks Rank of 2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Archer Daniels' Realigned Business Units Shows Renewed Focus
Archer Daniels Midland Company (ADM - Free Report) has realigned its business into four segments namely — Carbohydrate Solutions, Nutrition, Oilseeds and Origination — to accelerate growth and resonate well with changing customers’ needs. Earlier, the company used to report operational results under the Agricultural Services, Corn Processing, Oilseeds Processing as well as Wild Flavors and Specialty Ingredients segments. These latest changes will be reflected in its first-quarter 2018 results.
Per the reclassification, the Carbohydrate Solutions segment will comprise the Corn and Milling operations; Nutrition unit will include Animal Nutrition and Bioactives businesses, as well as the Wild Flavors & Specialty Ingredients segment (WFSI); the Oilseeds segment will remain unchanged; and Origination will include the Agricultural Services business, excluding Milling.
The new business segments are expected to clearly differentiate the company’s product and service offerings, while justifying its operating structure. Additionally, these segments will help Archer Daniels provide value-added and exclusive product assortments, thus boosting growth across its business portfolio.
As part of the realignment, management brought to effect some leadership changes, including new heads for the newly formed segments. Additionally, Archer Daniels appointed Joe Taets to the newly created role of senior vice president and president, Global Business Readiness. This is likely to speed up growth at its ongoing Readiness initiative.
The company’s Readiness initiative focuses on curtailing costs, enhancing operational efficiency and standardizing business processes and systems, in order to improve analytics and decision-making across the organization.
Meanwhile, the company has been on track with its strategic plan, which together with the 1ADM plan constitutes the Project Readiness program. Archer Daniels is progressing well with business transformation under its 1ADM program. It expects this project to help management have a more coordinated approach toward driving business improvement, standardizing functions and enriching consumers’ experience. Further, as part of this plan, management intends to allocate resources efficiently on more mature businesses and make prudent business investments. In 2017, the company achieved tremendous success as it rolled out its 1ADM business transformation project in various regions as well as businesses. Archer Daniels remains on track with more 1ADM rollouts in 2018.
Moving ahead, these initiatives are likely to help this Zacks Rank #2 (Buy) company gain competitive edge in the global grains industry by improving margins.
Nevertheless, shares of the company have gained 7.4% in the past three months, faring better than the industry’s 4.7% rally.
Looking for More Solid Picks in the Same Space? Count on These
Post Holdings, Inc. (POST - Free Report) has a long-term earnings growth rate of 14% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calavo Growers, Inc. (CVGW - Free Report) , a Zacks Rank #2 stock, pulled off an average positive earnings surprise of 31.6% in the last four quarters.
Limoneira Company (LMNR - Free Report) has outpaced the earnings estimates in the trailing four quarters by an average of 14.1%. Also, the stock carries a Zacks Rank of 2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>