ADM - Earnings call transcript Q1 2019 | Archer-Daniels-Midland Company

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Operator

Good morning and welcome to the Archer Daniels Midland Company First Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce your host for today's call, Victoria de la Huerga, Vice President, Investor Relations for Archer Daniels Midland Company. Victoria de la Huerga, you may begin.

Victoria de la Huerga

Thank you, Michelle. to quarter welcome webcast. and morning ADM's earnings first Good will of at Starting replay webcast be tomorrow, a today's available adm.com.

of from permitted additional to reports risks Juan which update For actual those performance, factors ADM our webcast, goals. factors overview the that statements presentation, On statement, X, that in and economic obligation management's of file in and we this current should industry on to turn constitute as under Chief many and assumes reports. views ADM SEC some and that says or no and assumptions forward-looking cause reflect and future following the materially Company's important uncertainties. conditions, strategic and and presentation, to assumptions the To Safe statements company concerning please financial our it's results. factors forward-looking These statements comments future estimates events. are information applicable Officer, Slide circumstances, has will the and with that to provided SEC new information results subject actions taking law, extent result meet those on our Chairman carefully are differ a the to quarter Luciano, in our any based you assumptions are could review today's provide of Executive of the an Harbor

Juan. and Then, Slide well now your corporate take And Our Chief I Juan turn they forward-look. as highlights our our over the Young, Please call to Financial discuss finally, results, financial questions. Ray the review to turn will will drivers Officer, as will of X. performance. will

Juan Luciano

morning the us first Thank for year joining we adjusted in quarter. per $X.XX $X.XX, down morning, you Thank earnings prior you, today. Good of everyone. share reported Victoria. from quarter's all This

a than difficult China challenging Our expected. a and adjusted margin environment, all the trade we ethanol North quarter. America, ongoing million. profit quarter was It in operating more dispute, impacted segment the weather initially $XXX was industry Severe

in the the look on As we changes ahead; year the of actions executing however, despite to to we committed some to focused and improve the including half pull our challenging than the and under announcing remain second of earnings or start are deliver strategy control our of we XXXX. making our today. comparable year, higher improved conditions levers we And continuing expect full our company year new we remain to objective to

our of of three flour close each the still we've in and progress pillars Mendota, plan We wheat as pillar, new have to the in this peanuts closure the second and mill the state-of-the-art new of tree selling the is in nut made begun Chicago in the already we rationalizing old substantial process our strategic two old optimize We once in the of mills our half we approach XXX-year In Midwest our year. announced Illinois; U.S. opening facility facility century online. footprint

leading We and streamlined and the advanced formally did to our improve Limited. of launching our to natural acquisitions expanded changes; are these our execution our drive a and that three $XXX cutting-edge our UK steps venture joint announced thorough Chemical finance, global making leaders our transformative to a Protexin project our Bio-Kult were acquire In Kansas, organization. nutrition And capabilities pooling reducing We We new to recently from thanks resulting pillar, company-wide Migrea, closing continuing and optimize our for expanded to our agreement spending our one business business acquisition animal projected provider, pillar, Cargill. value-added effectiveness a in million. an citrus ourselves to course, that centrally also Group. we with $XXX our world's for additional Dunns well we Agriculture celebrated launched and of of our position are nutrition previously Gleadell origination facility we services growth Neovia, company. us with probiotic by seeks the In digital grand origination ingredients a We production throughout with animal of spread simplification U.S. effort completion value We as other fourth of of We formulation America. opening across our process leader to acquisition part Oklahoma the efforts we global range by in continued XXXX to an Colorado, as to enhance by capital Readiness, accounting, citrus million North tool capital footprint of we processes. evaluation business. as prioritization, farmers of as our completed and resources flavor as Company, the enhanced modernized took And model organization GrainBridge to innovative our realize Ziegler improve of We of European provide our from elevators Readiness, innovative, sold support Florida the grain in and previously solutions. footprint. the efficiency in part and XX%

company, look we to drive long-term continuing new enhance creation. our to important want are I priorities. measures three advance strengthen forward, we our As value results, discuss strategic to Today, our and

food North complete in volumes liquid syrup corn as phasing feedstocks uses, soon plans of that at as well continues Minnesota, ADM we as for and of its starches, committed and corn The deliveries. to repurpose as mills high-fructose wet food Marshall, facility produce industrial-grade out for grow our starches to industrial market production America. higher in First, to

a demand, job food be to and ourselves will great a be positioning done with starches. leader we and industrial to continue has in meeting repurposing, this this team Our

of as spin-off of the potential shareholders. advance of but are will ADM dry to, which independent company an mills, subsidiary will as our once The an separation ethanol ethanol business subsidiary alternatives, is creating we the that report limited three Second, new establishment may facilitate the strategic segment existing to established. not the a include,

our this and Of course, valuations, to strategic market changes to be subject will acceptable our conditions, approval of as with board. any the portfolio decision,

this and growth, strengthen earlier actions month, customer a agility, serious our accelerate of enhance service. Third, we began new to

a is centralize help new and actions responsibilities. business series implement processes, and roles effectiveness, these of organizational enhance changes activities eliminate of and to and technologies, overlap productivity standardize and One in

also efforts planned We additional identify a continue synergies of to our to capture accelerating period opportunities. after of our are And, acquisitions. teams course, synergy

ensuring and shareholders. Finally, These Please structured company Canadian early steps eligible needs we opened to our turn are voluntary is business, customers, and meet Slide to that important of the organizational certain our a window U.S. have retirement colleagues. to our for evolving actions our X.

contribute XXXX benefits estimate and $XXX rate have of new million expand Thanks to by to Readiness prioritized our end pillars, guided run generate to and ongoing to are initiatives Last as to of bottom-line quarter, that our XXXX, to increased $XXX the more us $X of of XXX. now each are the billion. $X.X billion initiatives our our which execute our by estimate in supported undertaking $XXX of continue to competitiveness. strategic that accelerate XXXX. our allow And initiatives All has we we will our and as to million XXXX our [indiscernible] our expanded well work our in benefits to and by we efforts, end enhance run efforts, of and as than million to team's XXX reported rate $XXX we continue benefits we Readiness of pipeline, million, the net have our

the changes In cultural addition, and X,XXX call. comprehensive we to have our the to the about colleagues end advance are AXE of training, colleagues first enables end I'll this almost Execute more by the of empowers completed implementing. talk at quarter, Readiness or Ability the which

Now, Ray through performance. take business will Ray? us our

Ray Young

Yes, thanks, quarter. the provides X for Juan. highlights some Slide financial

was from $X.XX prior mentioned, year quarter. the Juan in As $X.XX, EPS the adjusted for the down quarter

adjusted Excluding down million, specified $XXX segment operating items, XX%. was profit

Our X.XX%, the other which our the and slightly positive ROIC Reform trailing for $XXX rate quarter four period, effective above first XXXX million. and of a from XX%, generating improvement tax Tax discrete points quarter from WACC basis U.S. of was was tax transition XXXX year-ago items. expense The XXX adjusted significant included approximately of EVA nearly tax annual average over X.X%,

Excluding the items, for the XX%. effective adjusted rate quarter about those was tax

rate were year results a and to profit of a the million, to to adjusted in to components Appendix, per $X.XX initial $X.XX effective share. the expenses tax prior XX% discrete XX XXXX, the reconciliation year impairment For $X.XX $X.XX tax due of range summary ahead gain the corporate the Chart tax the Other expense the assets. line. items, we of of which earnings related an On Slide the charge see guidance. can settlement our full per of share X continue you charges, our share was and each in slightly charges XX%, earnings of on to expect include sale our provides of to an adjustments $X.XX per related quarterly reported restructuring per of and business share acquisitions, operating and and period. transition $XX The

to is due interest acquisition. year the net full expense corporate increased of for In expected Our million debt $XXX about long-term estimate actual largely the lines, Neovia based upon levels, higher other underwriting performance. quarter to and due the

managerial and of are costs, as expense a were transfer the investments We on IT, up $XXX resulting costs corporate year, approximately the of net calendar well $XXX to centralization target versus interest and in basis million of innovation, costs. activities in toward the Unallocated the Readiness related project a certain year. due from R&D, principally prior on business still the million units, in for as

in still results CIP. target year. better Other quarter the million due on corporate We the charges company's calendar the for included improved investment $XXX are in to for from toward approximately

Turning statement billion acquisitions $XXX Gleadell amounted on capital Florida operations quarter. on first and $X.X nearly was for generate working the Chemical year-ago Company quarter. in quarter from with the line billion, on closed about as Neovia, the about Agriculture. the we spending Spending acquisitions we Total to Slide $X.X to cash the of million, before in flow X;

XX% to first and XX, highlights the in $XXX the million earlier, to our capital level In of shows we by Juan balance processes form quarter, place, X spending the mentioned projected As an reducing dividends. for of we $XXX of XXXX of of enhanced a are $XXX XXXX also March million. with capital sheet in million returned Slide as to our shareholders XXXX.

sheet position continues Our us very XXXX. balance solid well and remains for to

year-ago XX%, the $X.X in with resulting Total closed the a versus debt about $X debt period of was finished quarter year-ago was a we approximately $X.X of on capital funded net working operating the which the billion billion, total capital balance about levels. ratio January Our net acquisition, inventory to on lower We debt down $X.X billion XX. of up slightly Neovia from billion. as period,

Our shareholders' dividends, net year, share excess primarily due slightly from and last equity of billion of $XX.X up in $XX.X billion translation repurchases to was earnings adjustments.

global credit the quarter. available in billion capacity at $X.X the have We end

If you of had add short-term liquidity. available to access we $X.X billion cash,

Our diluted average recording for was in other effect long-term that took offsetting accounting assets are $XXX count quarter sheet. change right assets of fully share quarter, new million, start lease basis. Relating the classified leases at with liability the we this the in consolidated other a in million a of close on XXX used to for of classified an liabilities our to balance

turn quarter. Next, Please Slide earned million quarter. first excluding I'll specified adjusted operating our last discuss quarter, $XXX we first $XXX In XX% million year's business down of segment items from X. the the for profit the performance in to

soybeans $XX severe outlook million handling XXXX, versus had Now, American from than on Starting drove timing origination up and I'll margins and prior higher review significant effects. been exports team corn. results each prior approximately of for negatively were impacted the mark-to-mark Merchandising Slide first solid segment. and and which North by results XX, well both executed were conditions. period quarter of year in weather impacts the for despite performance The

caused transportation sales high in Results the a of to in In American normalized which helped reversal river quarter also the in and of higher by America. a as in were grain The global unfavorable performance versus South northbound offset conditions held volumes last first and soybean finance from freight to timing team fourth impacts trade which year-over-year in back job North softer year. was and deliver trade did addition, river soybean structured conditions. limited performance a lower overall the margins great by by the improved movements quarter water some impacted quarter, offset results movement strong barge meal rates

North of Absent American Looking with quarter. XXXX results quarter will China. volumes trade to lower the very North second year, to than this the this be quarter high year. were high of lower significantly substantially ahead, In American we conditions those expect similar second XXXX, and exports quarter shutdown of in second origination in be the anticipation and abnormally a first margins

our to see US-China water the of as from high will Further ramp if business the have U.S. coal operations. year. addition for a the to up the addition, opportunities river first trade in China benefit normalize, on our of will corn resolution significant out, the half origination weather continue second The conditions we imports in impact capitalize expected half particularly to slowdowns. situation from backlogs will coal soybeans In

still farmer If of executed the lower for $XX reverse timing helped of the about reversal added XX; million and food RPBO origination In to America contributions quarter The origination the in Slow credits quarter globally an year-ago Slide biodiesel higher Olenex were impacted $XX negative results the last the results. and of were comparable positive is results. million first including which Increased XXXX we record volumes in million effect quarter biodiesel negatively impacts Crushing helped and from margins of application oils selling demand venture coming oilseeds there results that drive and quarter our to retroactive one-time a to significantly strong the China and Europe, first a North contribute. performance. were crush exclude American joint impact, and timing refining, to previous tax first had XXXX Now other was to South our about the quarters. from year-over-year. the packaging up included $XXX year, additional quarter period. effects. Higher versus XXXX, first substantial

lower Wilmar on included results was some impairment charges. sugar which Asia

second to ahead crush year. the helped of results bolster be to the in high expect Looking last quarter year second last drought the XX% global second to quarter without XXXX, In quarter impacts, second from quarter Argentina about the margins. these down exceptionally we

weaker volumes pressuring severe complex, milling low of margins impacts flour Turkey by and than along the The by the much results In weather period. our corn and Europe, the were were sweeteners America sales the were higher sweetener to Bioproducts fever down Volumes in soybean margins and dry due North affected a solid causing book Solutions total, weak beyond. higher decreased quarter Beyond meal forward at year's due the margins. as weather increasing results first impact in to wheat costs significantly North Ethanol in was significant and down during in impacts by lower the addition, back deliveries. was African drove weaker the swine margins results year quarter XX, drought severe onetime a lower The remediation year were China and costs opportunities near-term, weather. last Decatur XXXX. quarter. ago In growing Argentina half industry and greater management reduced of the in quarter the of toward Carbohydrates severe prices the and in Starches domestic a soybean in in strong for Slide demand starches margins were to Decatur the production last the close than also are versus manufacturing second quarter quarter, were volumes, also results. though results much bioproducts impacted oversupply Columbus, reducing risk in corn weather wheat meal also negative please. prior in $XX and and points the both likely America, significantly mills first quarter the year, environment substantially and industry sweeteners logistics of affected outside this points limited. continued manufacturing million. and sugar and expenses. most Nebraska, complex and year at starch-based wet impacted slowdowns versus to prices for in with the The

containing the impacts and offerings to the second quarter helped quarter temporary XXXX. drive weather slightly Animal to quarter of million effects XX% ahead, complex will opportunity expect with and food E, spread service a improvements basis. in Vitamins second expect second to excluding If year, of may offerings, million up exports from and of in to the Carbohydrates such all or Solutions of performance further Looking approach mix a new severe results of proteins overall premix and Flavors the would currency nutrition year-over-year Despite inventory similar An XX% new improved systems results in affect a margins down margin on an Last and year-over-year leveraging were this Slide Organic higher below of of year's Carbohydrates alternate growth the residual results a we to during product animal start the our our another extract new our beverages than ethanol based WFSI excluded, meat costs. benefited seasonally in higher WFSI lower. were and resolution plant wins, the for very strong positive XXXX. first profit half innovative as X%. shortage sales $XX nutrition the trade dairy results quarter enhanced XX, turning as three utilized lower On particular ethanol US-China we Solutions be back soft whereas enhancement. A reliability, acquisitions constant vitamin strong range improve in were products, as Year-over-year $XX quarter. results. businesses across quarter stronger probiotic normalized dispute industry performance. the increased WILD margins reflected with position sales, and customer and the Decatur deliver were offer nutrition those were

Lysine our through XXXX Additionally, not price at third Neovia in inventory continue from the yet $XX to levels. normalized adjustments incremental quarter. and purchase cost January and yields an results of closed quarter for result disruptions, but flow XX production production improve on the that million

the throughout performance the acquisitions, including sales of quarter Nutrition's to XX% margin continued quarter recover, as expected in well Lysine second for growth than quarter result is Nutrition and to WFSI. year. continues the of for second Neovia, the benefit be profits continue this higher approximately will as ahead, the in Looking increased from quarter and as a second contributions improvements should last

quarter contributions of our nutrition drive year with as and summary, ramp WFSI last will continued comparison tough the are animal the half growth a second half in be results strong year, Neovia should us synergies. first improvements quarter, In now have which exceptionally business, increased our in up platform for of well while the and back this we very and quarter second setting global better Juan will The the with entire they than discuss. second be year's year strong of up will Juan? the from for

Juan Luciano

Ray. you, to Please turn Thank Slide XX.

challenging, Ray believe we objective our on will of despite than higher quarter first as growth explained, described The those to XXXX, we we the we into But call. or year to on making compatible those last our earnings was of and algorithm challenges, good committed our second full the continue to progress challenges remain quarter. executing deliver and plan some are

And continue back to ethanol to half in be plant our businesses look I certain of tree are on every Focus business root. continuing areas better or solid and repurposing peanut subsidiary, Decatur are and mentioned our as performance doing the and the earlier. Marshall nuts opportunities take to the track month, such we efforts complex, improve golden the First, passing are the for to additional of contributors with lysine, year. our like

discussed, to in how our already expand. we I've continues as Readiness truly ways. business is Readiness Second, fundamental run changing

that many of example. value business chain. Let you one The the are touching just throughout me is points nature give there our

transactions, how address increase internal in is as efficiencies, certain us we simplifying all and those so reduce are minimize like costs. streamlining We which processes helping transactions. analyzing high by now are see Readiness XX% this, we issues our of businesses reduce to can and as can errors,

including support year. next colleagues the Our estimates are run on new in the $X.X are and and billion rate revising reason all are of our higher in end their Readiness, benefits by we our execution

Third, we we recently the to continue have investments aggressively harvest made.

leadership from addition months synergies of earlier, As and of combination efforts portfolio, and Neovia. we're tremendously I animal excited three business, our important people, the acquisitions, encouraged the offers, capture existing particularly and are accelerating with in growing our watch true After a ownership, about its the to position market. recent and business an global by nutrition mentioned we're the we

initial accelerate on fact assumptions revenue in We synergies and both the are synergies. the cost, realized, be and will will margin confident that of and size of our increase rate likely of those

capital are improvements to and delivered based us improving the half. us less are we by to grow of I as spending, growth company, better with control, which helping and efficiently, Readiness levers by as new across a the processes to with each stronger to allowing us more earlier. pulling help our we're that areas, mentioned In on under and evaluate second these expect allowing opportunities, Our well contribute

in we addition, changes China. In expect outside conditions, particularly some relating to

be can encouraging we optimistic are mid-year, complete for see there certainty, U.S. a a US-China the While the harvest. well signs we of and before dispute importantly, trade resolution resolution regarding by

shown great dispute to impact a has flexibility the benefit businesses. far. and the to Nevertheless, will thus several resolution ADM our of Our of team minimize agility

has strong China's could satisfy pork fever in a import Estimates likely will other and hog particularly need Brazil, America, substantial agricultural Carbohydrates be resumption very Our demand. North but business volumes vary, issue particularly and China toward herd of swine will has presence, regions origination our and increased to U.S. boosted XX% serious and poultry African possible moves This implementation benefit managing now to Solutions that also boost meal Europe. from or of EXX. business China national it's margins, and China flows, through products. ASF. XX%. where as the ethanol demand potentially by a corn of on will And North our oilseeds soybean to in is and other dropped soybeans, clearly American export business meat trade with amounts

second in such fully Finally, severe of effects year. half of course, some as should weather us the of the the half, the of behind be the transitory of first impact

With the we a start. Michelle, we see a so of questions. open forward for balance XXXX, after strong finish please challenging to look the And line that, as

Operator

Heather question Group. Vertical first Your from Jones Instructions] from [Operator comes

Heather Jones

So I on have ASF. a question about your comments

you So would see sounded already are that be your to accelerating more will origin did China. like constructive is and you would increased you Thank are half. they been more as the you. -- QX on it's how call? margin deal protein of thinking see in that, demand U.S. other our thought countries to fulfill accelerate? the corollary But starting Are in second than a of production comments thought So these structure shortfall your if a expanded resolution that to beans you that about trade there demand, ex-China, given demand Chinese probably that

Juan Luciano

course this of up rapidly were for but this waking we the the and when that think all magnitude the of us to thinking about the are ASF world, event. impacts I plan significance Listen, of we year, the saw

that these, of of To protein that production that time, that XXX That's think in point an the the have satisfy probably be we think hog production. about to XX% facilities the size we'll this idea China, redirected magnitude global created. I to of may about China we in of the at to disappear. see protein annual to have to of U.S. the XX% see available of give million herds supplies

that that already is demand. tons is create to with will going are actually XX good you're and North this take If have working stayed popped of seeing America, why good lot, protein, the we China margins business I that's that's in the think days our margins we So gap people demand, at couple with enjoying over a that up very of the system million a be last of and a look pressure strong, drop in soybeans. have in on about,

that I other So that. think tons, overall, still But I X seeing that shift it's and million maybe a they gap. gap covers significant how all we China XX that are think proteins, whether of poultry leaves that tons, million to

regions likely I have So that from imports accelerating or the or customers more to that, seen North cannot serve our think herd cover to America I are our countries to to in or prepare have weight that. existing that, be will see are able but demand, ready Europe to the will a today whether happen and that getting gain it's that. we the Brazil, spike starting that to significant do we to do say

So if demand, this think margins of US, the already you the year. bushel constructive if for per that's add half we in think above very are the $X that crush that we you second margins in incremental

Heather Jones

And you believe demand price can potential beans? that offset in increases

Juan Luciano

We so. that of second more the is for half for year, than we think scenario think ethanol, grains, we pork for scenario for for When trade bullish about and a the of resolution in think the meat, actually soybeans.

feed. more First maybe will just million all, thinking XX we're now less animals because tons, to like China naturally soybeans, will import million before to we're have of thinking about XX tons, because they have less

of and around world. the there So, beans plenty are

going meat actually to pork bullish soybeans. on and is ethanol, be So than believe we in grains, that more do

ownership our soybean So we be with handle that we bases can the inventory. will and temporary psychological have, believe we given that in any that spike

Operator

from Driscoll Your Citi. next question comes from David

David Driscoll

ethanol comments I Readiness, just wanted one have follow-up I then and an on question. on your

hasn't hammered wanted about program guys don't just Readiness, that confident out launch we you ask the so ethanol? the and long $XX program to it. better now. the absolutely that know, process in mean, first Thank you disciplined, discipline And gotten industry to quite Juan, and see the guys for the the Why on upgrading history conditions, I the at they're on significant did then in first if how program. the ethanol, of hasn't walk guys be fair you. I to you're get they small just plants through do been just why Can relative just you do very you you planning your wide are very the quarter hit. So, And think you're should plants, right so me large, program ethanol up you industry after see in I taking initial ADM's the million are was it's kind a larger, efficient plants list loss just just industry quarter, soon ADM's of but ethanol then very quarter, project often the has these in did upgrade been second operations. more mentioned you upgrading

Juan Luciano

Readiness may have the Ray question, ethanol address me Let then question. address the

So Readiness turned initiative. actually X-year-old in April as an has

So, a this first will the quiet for process, been was was so the there you planning although it training. the we've and at while, if working part

we thorough businesses every ideas reviewing time, our are reported So, everybody and where are ADM and reviewed very to robust and steering committee at these. that of and process aspect very and this point of in monitor initiatives, continue gotten weekly have gotten have this of a into we we pipeline trained, we a we are pipeline a weekly have is going

We this two forget implemented behind QX of us. don't and quarters ahead our already now we QX have seen XXXX, little have bit we which these, plan in was David, a that of

coming rate look we thought. we we to maybe we don't an indication see percentage sometimes as the of that. that far reality growth an are initiatives, opportunity from realize pipeline with much So the so idea only turn a every when drop seeing we a our higher some into you have but is at have our so how experience this the program, and everything you of get a are than ideas we teams ahead going more and We we to of

we it transparency the to thought shareholders increasing spirit of So, disclose that proper our actually targets. to was in was

again, confident think don't the is about we to that this something us that happening is course, overnight. just have target. extremely feel that, But, for increased of So,

the to we have for Readiness already year, increase trained give that I already the quarters of been this, have of have been have initiatives we us savings the we us XXX said, with in we X,XXX the people confidence targets. has realizations As and two --

I comments the to Ray with quarter. on ethanol ask So make that, will some

Ray Young

was conditions Yes, poor. up tough a quarter in first building EBITDAs industry Ethanol very, look quarter. generic indices, Inventories the clearly had in you the very negative the When at Industry quarter. were first were quarter. through

actually first $X.XX you this versus about last compare for In we're the the industry fact, first gallon. quarter when year quarter EBITDAs down a year,

now. and Now, ethanol is as thinking look you're are starting this, forward, to we're of improving what right kind margins see we

factors. I think for several

here entire in demand normally due And improvements weather margins seasonal due ethanol United some partly demand pattern terms of seasonally throughout of as ethanol all, the First the for impacts the stabilized. levels, secondly, see of improves inventory have industry to in States. to you just always

about trade is Now as one mean, for again, a the the commodities going resolution catalyst roughly margins. which as aware, program, I of resolution gallons a gallons. billion purchase capacity forward, industry X an country. and as will would come that XXXX, US-China that you're an dispute trade current we X a online, national have X China of which some probably would will we EXX indicated, basically ethanol be program domestically billion And, drive Their probably positive billion of to bring quite capacity requirement additional production is David, and believe include US-China moving that additional in number our for will gallons toward of up they'll ethanol China that likely issue

either to the which And importing so source likely will they Brazil. will they additional from other United such more country gallons from and as terms of in ethanol, within have deficit have States ethanol probably countries or billion capacity X about

resume year. the of kind of China as the the catalyst in as believe half forward resolution of we of of think the that ethanol. be margins we imports back That for will a back industry trade the that do will in positive So, year, part half

Operator

next from JPMorgan. Simon from question [ph] Tom comes Your

open. is line Your

Unidentified Analyst

US-China So each the potential beyond trade resolution a the XXXX U.S. you're resolution assuming of And just in then like impact you discuss harvest. resolution? that Can businesses ethanol? a without you on on elaborate looks later can on your before what

Juan Luciano

course, anticipation seen any we having -- or for at are constructive that the counterparties commercial deal Also, to both QX or ready countries of in the Presidency by in both talks the talking and indications or not speeches of look of seeing, we inventories if there commercial previous Trump, it contract closer beans the getting mill and open corn buy being some is is that languages us, China are we've covered remaining behavior movement. they for in I look at But the other leaves revisit getting reading whether comments like than we if Presidents both the data giving don't about closer. market would whether think our with to teams our tea you We're President have and seems getting reducing having reviewing indicate the

tons. corn think that Tom, import going will, think that could have margins they're in be, you if tons which think create million U.S. about you that is pulp, let's that a other the so about going about what have potentially say, movement and going they strong years if is of candidly, percentage to what million that that to be will with, QX for China, to seen we XX%, to we the if that maybe basically conditions to that going is we need we plan program simultaneous, about U.S. than from Then, they're the So corn in buy We and are do, for. XX soybean. to of will the what for soybeans and soybean XX elevation buy

half Our loaded. plan for XXXX was second very

coming on Ray are which are the EXX XXXX We US, trying before, their China the and QX loaded us earnings based second-half for pledge. potentially they is fulfill into nation origination what back ethanol to to for described strong

will year, costs 'XX, last that So remove the or which facing and working add whether out better of peanuts we from burden that today, making some the our second you When a the are of nuts, we're of we was those. comparable two in year is half it improvements or whether we we're will some remove that Decatur, of we the are business, golden and of last you that that will impact. in think and it faced that have still to whether things is lysine those it's tree that the will

for us half. a give that very all constructive So, perspective second

in to being that solid If satisfy give a position U.S. that second year to consumption the very, Europe very will as XXXX confidence in the or potentially, or a by you America half second that created the us South half describe strong gap add increase will ASF as the very China in milk protein the for ADM.

Unidentified Analyst

just Thank business been the us the if -- million you by has $XXX you targeted turnaround million very improvement on to weather? could update impaired for much. $XXX your And year,

Juan Luciano

No, Tom.

that would the pillars run units schedule improve track the first the are all the weather when harvesting; these still think QX, but they the happened outside ahead the slightly XX but we we We that a we we expect part tail an it like happen temperature fermentation we of and be to June. Readiness U.S. of on we have all behind degrees pillar end of end three issues say, first or the you QX, the the by quarter. that the as of in in fermentation little of severity things faced and have, of of by us minus January, the and strange bit in the plant, run I after and I have with units in look quarter at Certainly Fahrenheit that help. doesn't in might that

but we So, better the I to course done do would continue make of progress, we we in have first say to weather helps, what have quarter.

and programs promised. feel progress, make track, we are think teams and to we deliver these what I we on continue the will

Ray Young

first offset some we're that half want in back incremental the maybe to you second some how quarter, about That's weather and with quarter, about. of get How the will is impacts the should benefits that the of going Readiness this we thinking to experienced in particularly year. in you see the think Tom be

Operator

Vincent comes from question Anderson Stifel. next from Your

Vincent Anderson

be a to could ethanol you take? actually mandate, idled view back how fuel grade I and to to have that that significant a that believe be long much amount going used of Do food ethanol, grade capacity just gap. on to close that alcohol So, is XXXX how fit they of converted China's have capacity might

Ray Young

is seems clearly to probably We import they phase are like have this but that in Do the believe we will. over impact XXXX, assess tough is I need mean going in significant it we will margins? 'yes.' to And to just will we so on not. that. they Without will billion do doubt, now. I gap It's import that very do a gallons, tall Yes. think this order time? believe X mean, answer believe ethanol that U.S. The the an

Vincent Anderson

to response this be? high earnings mill or a for moving from And corn was timing conversion, would specific of with customer wet of and regard product in demand maybe more then a the optimization? And away portfolio impact quickly, your just conversion declining this just syrup, to fructose is what the from that

Juan Luciano

in the heard always tend the make you talking XX and for -- from is the these products this maximize us the Vincent, grind to places. margins about Yes, fight trying to we

is capacity feedstocks all the the fermentation lot to economy. the placing very products, So, been requests have of economy for to bio liquid and fast, products for bio of starches produce a growing also make

hanging in see and margins those we are we in growth rates although candidly, and with terms previous we've better we So earnings areas calls, reported being more said volume, aggressively. seen of replaced high that -- XX higher and we XX this saw

we into shift that rates. XX us growth better give are in some this a margin, shifting our to capacity strategic things which So better are going is

lot, to right so little that is and and rates, thing a a of we we are sacrificing the do. So, think bit share margins growth volume and for this

point lot of be these and any need Regarding still a to we will you Vince, it see a the of you commitments, it will XXXX transition, if this at in specific own will. impact, XXXX, more a out put wouldn't impact let's this this in since be way, XXXX, time,

Vincent Anderson

And is just capacity a clarification, you're XX out? phasing this that

Juan Luciano

are XX% yes. capacity, that capacity XX is of Correct, This XX about our we shedding.

Operator

Adam next comes Sachs. from Your from question Goldman Samuelson

Adam Samuelson

operating wanted the So kind rest whole of the back year the I just out laid go rest having flat the the the of for year. to for of and you've to way earnings

around outlook trying of just I'm even comparison, to dynamics and I parts your XQ, trade under and it trade, back think difficult a with half, dynamics. improvements, against processing, as origination, to we a very record the help a implies Just us cyclical the down the and that benefit year? around certainly roll of kind XQ year-on-year oilseed is, have deal, ethanol, better kind levers through I the get internal for auger as a understand mean could internal of it on that that basis, control certainly that and

Juan Luciano

the outperforming on the based from things. one, third improve, three XXXX levers; Delivering strategic for harvest; big and the deal plan impact resolution; three So, and ASF. trade is again our big Readiness the in and sometimes

we and prices a backend that me I something for it Ray seasonality in said, very plan When bit. those explained little loaded, a is a went year different let plan was XXXX vitamin year, before, blew the QX somebody boost because plant three So XXXX expand a that on big up reasons as up. we this that, had

boost unusual a quarter of first X, Chinese we big tariff July got in with anticipated, export half. of so Second the very were threat a that

second golden plants, issues lysine half of half second these the lighter. that of XXXX, lot peanut we or made the with a On had

walking than this the issues having last the in very through year, to tail have while them are half, are we them, are year, second different in we year, this first those because not half. So of but we the going

you some that the second some to consider first of the but activity over a get about first is $XX loaded, little the While plan, on into like we will half, before, Probably of building second to one, million also maybe will insurance, there some weather in will. bigger that, half. be other that severity hand, didn't it back-end that to Ray half that is Readiness that first said deal, the Readiness little going and the the the the that, was the in reaction we and which achievement that of expect maybe exactly in program so quarter, of offset back the activity you be things half, in second in we it the quarter, opposite, much couldn't like and plan, if trade it's the the that very from I'm that, bit describing we every the the two is the know two overspill in in because didn't things could plan, we is

to of and consider is is plan original the our ASF, didn't boost we that a thing other The ASF. impact

to that As planned are for beginning I when capacity and the this think the this XX described China, be protein number that, XX%, we in and at herd take up going of this waking just is to least of at to million could that's I didn't before, this could that out, supply is the and take XX% to we big hogs the we significance to to fill, tons the consider be to be filled there have going very a of think people pork will with because price to volatility all with where by to going is of in is going limited. fattening be shift production incentivize will China. go preferences, places of short-term the China are. that, those an ability even because And you there if accelerating But actually to I

protein prices, increased to going increased you're feeding have So and volatility. increased

whereas macro macro more So to around whether well, risks things our footprint, a that our China there to our a operations, for we micro we certain from can risks. about gone do micro can economic do or less that, the can degree, leverage things things when are we teams, was have risk, handle look slowdown do at and risks, trade around war, example, flexibility, driven we can XXXX, are risks there ASF ADM our

was shifted it conditions I a it's loaded. So, even favor think made back-end to weather overall, that and ADM, improving, a loaded, loaded be has plan, but have think I are back-end we going more but not back-end only the to it more

plan and is probability a that are bit of the difficult, the So I under agree more continue moving heavily we first aspect to achieving order, to quarter you, our after every with it's we maybe deliver. there, tall control a working little but became still

continues be the plan. that So to

Adam Samuelson

I to mean, DDGs opportunities And meaningful to return be the on some corn, U.S. I will pricing in of more in favorable relative and that in soy to the China interested resolution grain just the in to China soy, your think exports balances would more U.S. those incremental a is respects event just be a inclined then, sizing just market wheat, to the even in opportunity, already? where export of

Juan Luciano

that Forum which the soon. to make, resolution he's in or the President, Yes, House spoke need that some Road it to the I Mr. yesterday the Xi at positively Xi, White whether about or trade when announced that changes Mr. Jinping they even you to of and Trump think Belt saw market are aligned inviting

You down corn, that, in need forget capacity China XX reserves -- XXX that is reserve; up million market have giving the to They you faster to in or margins XXX up China. of soybeans, that that and the and consumption of to went to the saw million, that's to million XX mean, like did, tons. take for something perspective than corn they tons us And like of what and from wheat the exports and US, used basically Remember tighten used our with that don't produce million think million the growing in tons -- I give million the pork. tons U.S. probably market XX to their up I in range corn. corn XX of today are in have consume we their

with to tons So for achievable. complying them trade very as XX of something a import the to resolution gesture XX million million is

going believe a the we think So all again the way and we to scenario summer only reading, everybody is the read believe we leaves to inching you actors like and for are happen. deal into government, a is but very plausible that's that what tea commercial the we that's can the from

Ray Young

that with plants ethanol they have also consume will country, country. corn On corn as the I to domestic ethanol need indicated forget, imports, China the is of ramping don't so earlier, in up production they more the in

to with corn. import deal another why an to also there incentive as for U.S. that's So the reason is China associated

Adam Samuelson

a second segment origination? oilseeds, the that crushing whole And and then, in just just clarification was quarter-on-quarter that the the commentary decline or on around quarter; the XX% quick was

Ray Young

whole the segment. That's

Operator

question from next Your Stanley. Andrews Morgan comes from Vincent

Vincent Andrews

the some place, in that long EXX the up mean, taking did remember from they position to ethanol the time. I I is -- on wound follow-ups first are Just it a China go in a all, blend, just where infrastructure now it, all U.S. of right they could Did when situation.

to on off. So where that? do you think they start Just are

Ray Young

that. are they They've process of want moving toward Well, toward have in currently provinces they mandate nationally. in country. XXXX They that the about the move the XX in indicated to

their there argue the part can year, environmental mandate but on here, get they're as are clearly over moving toward track they environment focus by driven One on actually XXXX? they they of the by will that won't Now, focus, nationally that this remember their time. get is by

billion to they think indicated gallons but to I that a do an unrealistic in gallon are of billion deal, is from assume United will don't so, States to to part they earlier, import trade as think, import And I that's about. X going XXXX. think scenario that, as they're going X for I XXXX in it not us unrealistic

Vincent Andrews

for case of And forth. structural good China laid ethanol out you based pretty kind and a so bull on

is assets, is it desire sounds the potentially like your quite the spin, in driving separate outlook bullish? sort what if to So actually it sell of

Ray Young

and announced past what we perspective, Yes, part in just -- when believe think ethanol you I that a on mean, is mills from term States, is the in the at lot for dry decision industry the a of we've an the outlook the constructive right. call, so indicated but industry strategic a company. which I do there think producers the industry like about the medium structure they U.S. we that mean think and themselves, ethanol in United There I of of issue earlier a I consolidation to case is for is it is alluded is here there here. an that

our still our going right. here, we're and perspective, part mills strategic consolidate to mills the is, the our have dry frankly, And a to to from monetize help decision decision so industry wet on basically

this wet And capacity from but the so, we some perspective, shareholders. we still available, our best of in believe mill have a business is strategy interest

Operator

Moskow question Robert comes next Credit Your Suisse. from from

Robert Moskow

the Argentina making outlook is there that's see for year guidance commentary you was demand, pretty, else being that I pretty Just and a question stripped the is so forgetting? XX%, be the about negative good about first out margin the Thanks. really quarter that strong tough second global to tough down versus ago even after comparison think for comp, quarter oilseeds your XQ, I'm something

Ray Young

driven crush quarter we it toward just healthy, were the per but move Don't China Argentina right, margins in situation, issue, the bushel. forget margins really of quarter in culminated Rob, the the extremely primarily saw drill second last when $X really second not because year

the when structure. year, environment year terms remains see right. for compare very of at meal. you're last very and At pop our same not soybean U.S. right going constructive So this margin the demand the this in we remains perspective, From particularly demand versus we that year time, look to underlying strong, for

saw second So, not is us therefore, we quarter. healthy the as in for believe to strong strong as the health we margins to second last environment as abnormally which It's year going was per frankly bushel, going margin were be quarter -- be in abnormally the just strong. like what $X

Juan Luciano

Yes, think, last I have absorb that the think all described, to regard. that, that year quarter, mills The the Argentina Argentina going and, and needs Rob, that's capacity. Ray this we I an was is harvest world coming are anomaly place they in as all where from

a more is environment normalization demand that in and strong perspective. on this from still So a margin very a

Robert Moskow

outlook year? the has for anything So -- overall oilseeds, versus year the changed your for you for

Juan Luciano

have call, Remember we previous year, given year significantly last we our to at versus half, for time. optimistic scenario that today this the than ASF, last we meal so more our Biodiesel our see that during comments benefit oilseeds the growth that I think we higher. believe also now but before that so would had China our going second call, is last say of about are around become saw constructive world higher we than has far I since we the more call, credit even come don't the last my outside tax

Robert Moskow

oriented the I oilseeds margins, was selling, regarding slow origination very that that better? commentary is South farmer America, so weak Yes, think the mean your quarter fact the for being North and does that that's anyway America despite confidence

Juan Luciano

very in think about degree are for America, Brazil, sorry their crop a about will -- corn there course, going -- but will mark infrastructure, chase has with not people we lot Brazil of a be the taking not South to so is these also oils the of positive take-or-pay in big pessimistic that have good with do and not strong in second would Argentina, continues I In -- contracts. because it Brazil, fact crushing have very refined half large are, less say, market Biodiesel we of to the pressure mark their certain now beans market to corn a in is comply crushing very to to

less later create soybean on that environment crush. basis pressure of that that, alleviates on part taking corn will benefit or a better So, will

that will last we are having the our Algar half Brazil, think I year. So we we and more in of second even that have impact for optimistic Algar in remember of of portfolio positive have impact that didn't the -- the

positive. all the So, that makes very second half

Operator

Your next Research. comes from Cleveland from Piken question Michael

Michael Piken

Just a follow-up couple of oilseed. on questions other

any Wilmar, sort In they affected ASF to of potential going by headwind there? be how are and have in terms of of you your stake sort incorporated

Juan Luciano

Listen, you about information. is what if know think Wilmar, going describe I'm public I to

I So, team and, is but Wilmar of at management remember if you in to think about, risk impact the always of all, course, adjusting. short-term think they first exceptional are going crush

good very that. and astute very very, are they at So

somebody that it if ADM is feel we team that can So that, there Wilmar or team -- a the the team. if is navigate

about So you if but they at if second, are it's their that think sometimes you look at that. public information consumer oilseed also half earnings as includes is China and is their very their products. their not But good that also segment miller clear, describe giant about earnings a the oilseeds milling, grains, but crushing, wheat they includes wheat and in and that include Wilmar of

then the of that, in largest let's Wilmar. XX% either joint other Wilmar a is that ventures palm in of which oil XX% overall say about Russia. of about or to you oilseed associates segment palm producer and the maybe XX% XX% is is Africa is And world. earnings big have Then have oil are which which XX% for about So, you to

I say have and So, sugar -- would the then you business.

when So a it, well-balanced very, diversified you and think it's portfolio. very about

affiliates you crush margins still have still still wheat the in an still have So have consumer products, you you issue, even you have you and if sugar. the still short-term palm milling, have oil, may have

can't So, and diversified portfolio, ability their wide be they're to and would we to say and I I manage their specifics, but risk all again, between any disclose think going right.

to sometimes long-term, are consolidating China, small is ASF they in a positive, farms, this of having certain ASF effect leftover industry, the industry so small farmers that a the properly their On the we feed crisis more in believe be producing the degree actually, would probably is acute these feeding the pork not whatever. pork's, sometimes

think bigger, are feeders. more the I larger they While companies, professional

some So the two we small will degree, a to industry, will of do out crisis weed certain think consolidate the this farmers consolidation things. and that that

you're -- density for bio First going applied, will have going is we in less reasons, measures because to for next to describing, be think going make bio be of us that are rebuilding we this have to that just of of to these the some a herd, all, scenario three sanitary sanitary years. the to have there's delay that order with in

The soybean users second products. effect of on that that other larger consolidate in players is meal be that than again, will more the will industry

I make environment Wilmar's will customers. this time a over healthier for that So think

long-term choppy, positive. short-term So,

Michael Piken

harvest, last are could your Brazil you year big in logistics. down down there, operation? expecting know you Brazilian hiccups truckers' I any approach to the about a there strike, as then, we what's situation was And and happening with talk

Juan Luciano

in describe pricing, call diesel Brazil, point parity truckers' at sense put forward they The is change the time can meal they it when what and and I course, in markets, So comes, is the prices. obviously situation soy market prices the their in their change of harvest international if this that the Petrobras the when is mandates. the to at aligning international works complex

environment the difficult guarantee climbing, very pricing. are chain little in is I and a on for of trucks, given how piece because situation it's past truck economic are when so there Brazil, low buy owners is subsidies low there was in is a this certainly, expect prices But bit freight increase and a Petrobras time, in working two So, there to activity going to of freight of the the point regulate aspects the overcapacity other prices. of for at oil freight prices because and understand of recession trucks. oil market on; do chain it work to you In the cannot there them, complicated, because an is you which the can

you create add poor the Brazil, the that when for The of of a bit So truckers. bind. little are some the that, maybe cost in more truckers state roads maintenance in

technical more government the a the and have not with could of of discuss technical the the and and under in of table, to current freight like Sao government heard a there the Brazil about freight negotiated create this become table, the The trying then have course negotiate XX% to the this end of of bigger the been ask truckers, table a freight University prices has right freight if Paulo that freight dialog freight Agriculture is -- a new table we table, So, issue. School issue table. The freight now. has been and are

that July. right So, with in is discuss implemented the to to of now problem supposed hearings to are there we're XX-days that, going have that public be

every July, will theoretically, course, good negotiated one going that, that So drivers you can with imagine, not tables, that. this as the feel prices, you're to market have current although, in the we But XX% with freight one truck in two of January happy year. under be freight table

that it closely, supplier the infrastructure issues following that terms the of Brazil that So U.S. reliable we to very continues I a sometimes. it emphasize has more think in are makes and

if be will. big producer continues So, perspective logistics Brazil you a to from unreliable

So, we're watching find it, we're all and that And time, the this it. over in solution. a government truckers at will hope point the we

Operator

comes Ken Montreal. from question Zaslow next from of Your Bank

Ken Zaslow

kind initial Just relative can about there the your had you animal gone nutrition and expectations? to what wrong in to business, talk

Juan Luciano

animal the about talk can nutrition. I Yes,

with So, very we the happy acquisition. are Neovia

very with our matches are happy how business. it We

Mexico, acquisition Asia. the and and Europe Neovia brought mostly business was us and China, Our North America America, Central Brazil, Southeast

happened had XXXX. very it and their lot year a because complement, comp So own we ability that get and to in allowed versus deliver to their big the last in prices. everybody we more the the in quarter, more a synergies, was happier first issue had a optimistic about of industry of the that very high at get, an very the What vitamins we all, sell them, good first and

of remember, the And million. the the valuation were going being we Neovia, then, issue to time issue, a we is price inventory knew you is solved, the have of us happy quarter the tail transaction still and the very in not And this hit still lysine lysine of addressed, adjustment, you progress, we're purchase So, get it being every $XX are million. time new we but have that. this size was that $XX in with fighting impacted

over extra a million you think So you and the $XX Neovia, have in quantify. about nutrition, a tough take company if that and costs like noise, case you if when comp, of you of you will, cannot with properly

EURXXX travel very so look delivering you and need get very defining synergies. was in that optimistic are each need four, thinking because we're EURXX look deliver were people million at we're month deliver the less of more, as we we to at million to to were end the we XXXX. -- had looking of we the that we today, that know at synergies confident supposed starters, year But synergies, one to we deliver the to of For estimating, now, the EBITDA we we deliver, of Remember closed also start other, that the that. by we looking the end the going less closed January, are to when business to two. And synergies we the year one about

better than expected. much So,

I look with bit -- at would parallel noise, WILD. October little in say, traced the this, happened I a -- can short-term We So, XXXX. WILD what took

do see grow and were all market, you revenue after faster product immediately, five at because even where were this organically growth acquired. grow XX% The that. we started mix you X%, first shifting quarter, we years Look and -- growth complaining, we to we per profit have than guys is like the four, not spectacular, year,

evolution Neovia we So, I the with to mentioned animal originally for see the same and think up story is nutrition, going you're that margin intact.

Ken Zaslow

particularly the is, to And oilseed next M&A will be in question consolidate does more activity this environment, question given on then this my expand, repeatedly ASF, bigger as industry, the so this you you place with embolden bullish this you that well is embolden space how actions? you industry to last are to needs and the as know my said ASF it know, that this to geographic the I like does you've you'd consolidate, take pursue

Juan Luciano

for way. question ask I to in the praise your Ken consolidation you different creativity a

to that, we like growth We on we continue continue consolidations. in very bullish oilseeds, intending the that, to be smart and rates -- about listen be have much to very we are

available, at you at venture what those with joint If Algar, what that we footprint an you look with if looking. with to assets we're did continue will And to that did our assets at fit always our and Cargill. look are in are upgrade our well, we Egypt look teams the

Operator

final question from Eric from Buckingham will Your Larson Research. for today come

Eric Larson

brief. I out of my everyone. Thanks, time, know very will we're questions so be

and the inventory million another clarification a first adjustments quarter negative way had a The $X.XX tax question, and one is investors issues, $X.XX rate, really from looking you higher from here, then a from will weather-related $XX at purchasing of in Neovia. impact be negative your

now from it? $X.XX a the view, we that probably or $X.XX of look if that is at kind way an look to So question to to it $X.XX is It of Ray. $X.XX at investor is a for reasonable point

Ray Young

Yes.

item. is of Just remember on the tax adjustment an rate, remember, it part

That's had rate item. transition that tax a the bulk to we we why tax the So, were the is higher of quarter. in reason therefore, the at adjustments due adjustment an

adjustment so, for as rate those more And point this time, XX% indicated like all at exclude if looking items. so year, I the that in my we it's in XX% -- we're remarks, a at least

as looking some volume of the issues, weather We're insurance settlements probably of back the recover in half we year. of some in order it, the we On of some indicated, part part may to get to those of be will that. at mitigate impacts, that offset the able

were So, part we of indicated, $XX business, driving I actions the the mitigation well. there therefore of as additional raw that rest will Readiness some and, will as million toward offset be also the that impact, that

we mean, of going million I million that and tougher we're I I view in quarter, the that's but have just kind that a related of going mean OP initially that number. depreciation that one-time impact the we're have to have that segment -- because $XX a that's estimated just is $XX didn't looking as yes, so, at the terms the an to impact, number, we in couldn't and On impact in estimate additional

so, the And there too. we make OP to versus sure out rate the need we impacts I impacts just tax separate again, mean, segment

Eric Larson

each grind Readiness would trying ADM to size not the XX increase move of I the in you're initiatives more old of my or covering then is, and like your supply Marshall, of have folks more XX number talking your some return get in like doing that a more my I to you doing built moves that, bold are really to seen adjustment don't front-end quarter, had company, years capacity of have And XX -- question the market just final in about think the plant program. of out and you you you're product the the you

achieve maybe higher, ROIC. mean should confidence when XX% in how total that going react your haven't some I you changed that thought? is positive returns I profile forward. this would When you you this, at -- really move look this give return even a look to at terms I your but at you So point goals, And certainly, more can your know of for so I

Juan Luciano

higher numbers. objective. be to as to from get Yes, our XX% XX% desire ROIC achieve the that continues ROIC and deviated to to a way never We

and their that we have in that. shareholder tremendous efficiencies are returns. is revenue basically The and to create core That's returns and a we and business margin of that acquisitions invested digesting, a have a those but that in they're to are going job for the growth shareholder done and and businesses businesses the is and little hampered to improving option in I drive they continue growth to bit drive Readiness company will cash the up, course flow are by role actually create their right Nutrition think that ROIC the now way goodwill doing all value through the value.

value feel I we organic returns most that no you on cows have or in value and important our The and strategy to sacred through our know learn either creation, or very we think reflecting growth in do is thing business team. to are for our division. that continue is and on shareholder you're if we about to to something base our is drive So, through what can everything there will good you nutrition probably creation focus

Operator

turn to a ahead. would This brings go back now the our Q&A over Ms. Please portion like Huerga. Victoria to conclusion. la to call I de

Victoria de la Huerga

joining some upcoming time Michelle, and Slide us me always, follow you, your Have And questions. events any with the thanks be notes thank XX and of where as please for if you to free everybody day. up feel And ADM. investor good will other for have in Thank you a today. participating. interest

Operator

everyone. you, call. will Thank This conference today's conclude

You may now disconnect.

Archer-Daniels-Midland (ADM) 26 Apr 192019 Q1 Earnings call transcript