ADM stands a loss from flood in the USA

Archer Daniels Midland Company (ADM) expects severe weather disruptions in the USA to have a negative pre-tax operating profit impact to ADM of USD 50 million to USD 60 million for the first quarter.

"Extreme winter weather has affected our first quarter North American operations beyond what we would experience in a typical winter," the company notes.

ADM informs that in March powerful snow and rain storms early in the month and resulting flooding and its after-effects are affecting both Carbohydrates Solutions and Origination operations. Rail transportation has been disrupted throughout the region; the company's corn processing complex in Columbus, Nebraska, was idled due to flooding and currently is running at reduced rates; and unfavourable river conditions since December are severely limiting barge transportation movements and port activities.

"We continue to assess the situation, and utilize our transportation and operating network as much as possible to meet customer needs," the message says.

As previously reported, grain silos had been destroyed by the flooding in Hamburg, Iowa. Damage to industry and infrastructure was expected to reach into the hundreds of millions of dollars, and perhaps much higher.