DECATUR, Ill. (AP) — Agribusiness conglomerate Archer Daniels Midland Co. announced plans Wednesday to cut 1,000 mostly salaried jobs as it navigates volatile global crops markets.
The move will cut 15 percent of the Decatur-based company’s corporate staff, about 3 percent of its total workforce, CEO Patricia Woertz said in statement.
Archer Daniels Midland reported $2.03 billion in profits for the last fiscal year alone, but crops markets can make for unpredictable revenue. Corn and soybean prices have seesawed violently this year, hitting near-record levels only to plunge again in a matter of months. Such swings can quickly wipe out profits, so ADM is looking to cut as much overhead costs as it can.
Woertz said the job cuts will help the company be more competitive in the modern food industry. It expects to save about $100 million in annual expenses from the cuts, along with other cost-cutting measures. The job cuts will cost between $50 and $75 million during the third quarter of the company’s current fiscal year.
ADM said it first will offer employees a chance to voluntarily retire early if they are at least 57 years old and meet other requirements. Employees have until the end of January to take the retirement package. After that, the company will cut the remaining number of jobs needed to meet the 1,000 mark.
ADM employs 30,000 people worldwide with corporate offices in Switzerland, Brazil and China. But news of the reductions could still have a big impact on hometown Decatur.
The company is the largest employer in the city of about 76,000, with about 4,000 workers, and offers some of the highest-paid local positions. City Manager Ryan McCrady said local officials learned of the cuts from media reports, but that after talking with ADM Wednesday, remained hopeful the job losses would be widely spread rather than focused in town.
“I’m optimistic that they’re talking about a global reduction, that may buffer some of the impacts at the local level,” McCrady said.
Even some ADM employees like Cade Grimm, 35, were caught off guard.
“I hate to see anyone lose their job,” the hourly worker from Bethany said upon returning to work from several days off. “This is pretty frightening, actually, because it usually rolls downhill.”
Gov. Pat Quinn’s office spoke with ADM Wednesday “about doing anything we can to protect Illinois jobs as the company makes its international business decisions,” Quinn spokeswoman Marcelyn Love said.
It’s unclear how many U.S. employees will be cut until the company knows how many opt to take the voluntary retirement, said spokesman David Weintraub.
Archer Daniels Midland operates everything from shipping barges to ethanol plants and big factories where corn is turned into a rainbow of engineered food ingredients. The company can be both helped and hurt by big swings in crop prices. On the one hand, it can make more money by selling grain overseas. But when corn prices shot up early this summer, it meant Archer Daniels Midland had to pay a lot more for its raw ingredients, which cut the profit margin in its corn processing division.
The reasons behind big price swings for corn and soybeans vary. One of the biggest is the historically low level of grain reserves. The U.S. ethanol industry consumes about 40 percent of the U.S. corn crop, and global livestock producers are consuming more soybeans and corn to feed newly wealthy customers in Asia. Farmers have had a hard time meeting the demand. When reserves get low, global traders get jittery and bid up prices quickly.
A big part of Archer Daniel Midland’s business is guessing which way those prices are going to move.
Decatur businesses, most of which are dependent on ADM to some degree, were meanwhile left guessing about the fallout from Wednesday’s announcement.
The company helps steady, among other things, the local real estate market even in tough times, said Jeff Hunt, the owner of 12 Stones home inspection service in Decatur.
“When one of the corporates does make a change like that, everybody just kind of holds their breath and waits to see,” Hunt said.
Another major firm in Decatur, agricultural processor Tate & Lyle, is moving its headquarters to the Chicago suburbs. The company initially said the move would pull about 160 jobs out of Decatur, but city officials said Wednesday that the figure may be lower.
___
Leonard reported from St. Louis.
DECATUR, Ill. (AP) — Agribusiness conglomerate Archer Daniels Midland Co. announced plans Wednesday to cut 1,000 mostly salaried jobs as it navigates volatile global crops markets.
The move will cut 15 percent of the Decatur-based company’s corporate staff, about 3 percent of its total workforce, CEO Patricia Woertz said in statement.
Archer Daniels Midland reported $2.03 billion in profits for the last fiscal year alone, but crops markets can make for unpredictable revenue. Corn and soybean prices have seesawed violently this year, hitting near-record levels only to plunge again in a matter of months. Such swings can quickly wipe out profits, so ADM is looking to cut as much overhead costs as it can.
Woertz said the job cuts will help the company be more competitive in the modern food industry. It expects to save about $100 million in annual expenses from the cuts, along with other cost-cutting measures. The job cuts will cost between $50 and $75 million during the third quarter of the company’s current fiscal year.
ADM said it first will offer employees a chance to voluntarily retire early if they are at least 57 years old and meet other requirements. Employees have until the end of January to take the retirement package. After that, the company will cut the remaining number of jobs needed to meet the 1,000 mark.
ADM employs 30,000 people worldwide with corporate offices in Switzerland, Brazil and China. But news of the reductions could still have a big impact on hometown Decatur.
The company is the largest employer in the city of about 76,000, with about 4,000 workers, and offers some of the highest-paid local positions. City Manager Ryan McCrady said local officials learned of the cuts from media reports, but that after talking with ADM Wednesday, remained hopeful the job losses would be widely spread rather than focused in town.
“I’m optimistic that they’re talking about a global reduction, that may buffer some of the impacts at the local level,” McCrady said.
Even some ADM employees like Cade Grimm, 35, were caught off guard.
“I hate to see anyone lose their job,” the hourly worker from Bethany said upon returning to work from several days off. “This is pretty frightening, actually, because it usually rolls downhill.”
Gov. Pat Quinn’s office spoke with ADM Wednesday “about doing anything we can to protect Illinois jobs as the company makes its international business decisions,” Quinn spokeswoman Marcelyn Love said.
It’s unclear how many U.S. employees will be cut until the company knows how many opt to take the voluntary retirement, said spokesman David Weintraub.
Archer Daniels Midland operates everything from shipping barges to ethanol plants and big factories where corn is turned into a rainbow of engineered food ingredients. The company can be both helped and hurt by big swings in crop prices. On the one hand, it can make more money by selling grain overseas. But when corn prices shot up early this summer, it meant Archer Daniels Midland had to pay a lot more for its raw ingredients, which cut the profit margin in its corn processing division.
The reasons behind big price swings for corn and soybeans vary. One of the biggest is the historically low level of grain reserves. The U.S. ethanol industry consumes about 40 percent of the U.S. corn crop, and global livestock producers are consuming more soybeans and corn to feed newly wealthy customers in Asia. Farmers have had a hard time meeting the demand. When reserves get low, global traders get jittery and bid up prices quickly.
A big part of Archer Daniel Midland’s business is guessing which way those prices are going to move.
Decatur businesses, most of which are dependent on ADM to some degree, were meanwhile left guessing about the fallout from Wednesday’s announcement.
The company helps steady, among other things, the local real estate market even in tough times, said Jeff Hunt, the owner of 12 Stones home inspection service in Decatur.
“When one of the corporates does make a change like that, everybody just kind of holds their breath and waits to see,” Hunt said.
Another major firm in Decatur, agricultural processor Tate & Lyle, is moving its headquarters from to the Chicago suburbs. The company initially said the move would pull about 160 jobs out of Decatur, but city officials said Wednesday that the figure may be lower.
___
Leonard reported from St. Louis.
DECATUR, Ill. (AP) — Agribusiness conglomerate Archer Daniels Midland Co. announced plans Wednesday to cut 1,000 mostly salaried jobs as it navigates volatile global crops markets.
The move will cut 15 percent of the Decatur-based company’s corporate staff, about 3 percent of its total workforce, CEO Patricia Woertz said in statement.
Archer Daniels Midland reported $2.03 billion in profits for the last fiscal year alone, but crops markets can make for unpredictable revenue. Corn and soybean prices have seesawed violently this year, hitting near-record levels only to plunge again in a matter of months. Such swings can quickly wipe out profits, so ADM is looking to cut as much overhead costs as it can.
Woertz said the job cuts will help the company be more competitive in the modern food industry. It expects to save about $100 million in annual expenses from the cuts, along with other cost-cutting measures. The job cuts will cost between $50 and $75 million during the third quarter of the company’s current fiscal year.
ADM said it first will offer employees a chance to voluntarily retire early if they are at least 57 years old and meet other requirements. Employees have until the end of January to take the retirement package. After that, the company will cut the remaining number of jobs needed to meet the 1,000 mark.
ADM employs 30,000 people worldwide with corporate offices in Switzerland, Brazil and China. But news of the reductions could still have a big impact on hometown Decatur.
The company is the largest employer in the city of about 76,000, with about 4,000 workers, and offers some of the highest-paid local positions. City Manager Ryan McCrady said local officials learned of the cuts from media reports, but that after talking with ADM Wednesday, remained hopeful the job losses would be widely spread rather than focused in town.
“I’m optimistic that they’re talking about a global reduction, that may buffer some of the impacts at the local level,” McCrady said.
Even some ADM employees like Cade Grimm, 35, were caught off guard.
“I hate to see anyone lose their job,” the hourly worker from Bethany said upon returning to work from several days off. “This is pretty frightening, actually, because it usually rolls downhill.”
Gov. Pat Quinn’s office spoke with ADM Wednesday “about doing anything we can to protect Illinois jobs as the company makes its international business decisions,” Quinn spokeswoman Marcelyn Love said.
It’s unclear how many U.S. employees will be cut until the company knows how many opt to take the voluntary retirement, said spokesman David Weintraub.
Archer Daniels Midland operates everything from shipping barges to ethanol plants and big factories where corn is turned into a rainbow of engineered food ingredients. The company can be both helped and hurt by big swings in crop prices. On the one hand, it can make more money by selling grain overseas. But when corn prices shot up early this summer, it meant Archer Daniels Midland had to pay a lot more for its raw ingredients, which cut the profit margin in its corn processing division.
The reasons behind big price swings for corn and soybeans vary. One of the biggest is the historically low level of grain reserves. The U.S. ethanol industry consumes about 40 percent of the U.S. corn crop, and global livestock producers are consuming more soybeans and corn to feed newly wealthy customers in Asia. Farmers have had a hard time meeting the demand. When reserves get low, global traders get jittery and bid up prices quickly.
A big part of Archer Daniel Midland’s business is guessing which way those prices are going to move.
Decatur businesses, most of which are dependent on ADM to some degree, were meanwhile left guessing about the fallout from Wednesday’s announcement.
The company helps steady, among other things, the local real estate market even in tough times, said Jeff Hunt, the owner of 12 Stones home inspection service in Decatur.
“When one of the corporates does make a change like that, everybody just kind of holds their breath and waits to see,” Hunt said.
Another major firm in Decatur, agricultural processor Tate & Lyle, is moving its headquarters from to the Chicago suburbs. The company initially said the move would pull about 160 jobs out of Decatur, but city officials said Wednesday that the figure may be lower.
___
Leonard reported from St. Louis.
ST. LOUIS (AP) — Agribusiness conglomerate Archer Daniels Midland Co. announced plans Wednesday to cut 1,000 jobs, or about 3 percent of its total workforce, with the majority of the positions being salaried staff.
The move will cut about 15 percent of the Decatur, Ill.-based company’s corporate staff, CEO Patricia Woertz said in statement.
Archer Daniels Midland reported $2.03 billion in profits for the last fiscal year alone, but a volatile global market for crops has made for unpredictable revenue. Corn and soybean prices have seesawed violently this year, hitting near-record levels only to plunge again in a matter of months. Such swings can quickly wipe out profits, so Archer Daniels Midland is looking to cut as much overhead costs as it can.
Woertz said the job cuts will help the company be more competitive in the modern food industry. Archer Daniels Midland expects to save about $100 million in annual expenses from the cuts, along with other cost-cutting measures. The job cuts will cost between $50 and $75 million during the third quarter of the company’s current fiscal year.
Archer Daniels Midland said it first will offer employees a chance to voluntarily retire early if they are at least 57 years old and meet other requirements. Employees have until the end of January to take the retirement package. After that, Archer Daniels Midland will cut the remaining number of jobs needed to meet the 1,000 mark.
Archer Daniels Midland employs 30,000 people worldwide. The company operates everything from shipping barges to ethanol plants and big factories where corn is turned into a rainbow of engineered food ingredients. The company can be both helped and hurt by big swings in crop prices. On the one hand, it can make more money by selling grain overseas. But when corn prices shot up early this summer, it meant Archer Daniels Midland had to pay a lot more for its raw ingredients, which cut the profit margin in its corn processing division.
The reasons behind big price swings for corn and soybeans vary. One of the biggest is the historically low level of grain reserves. The U.S. ethanol industry consumes about 40 percent of the U.S. corn crop, and global livestock producers are consuming more soybeans and corn to feed newly wealthy customers in Asia. Farmers have had a hard time meeting the demand. When reserves get low, global traders get jittery and bid up prices quickly.
A big part of Archer Daniel Midland’s business is guessing which way those prices are going to move.
ST. LOUIS (AP) — Agribusiness conglomerate Archer Daniels Midland Co. announced plans Wednesday to cut 1,000 jobs, or about 3 percent of its total workforce, with the majority of the positions being salaried staff.
The move will cut about 15 percent of the Decatur, Ill.-based company’s corporate staff, CEO Patricia Woertz said in statement.
Archer Daniels Midland reported $2.03 billion in profits for the last fiscal year alone, but a volatile global market for crops has made for unpredictable revenue. Corn and soybean prices have seesawed violently this year, hitting near-record levels only to plunge again in a matter of months. Such swings can quickly wipe out profits, so Archer Daniels Midland is looking to cut as much overhead costs as it can.
Woertz said the job cuts will help the company be more competitive in the modern food industry. Archer Daniels Midland expects to save about $100 million in annual expenses from the cuts, along with other cost-cutting measures. The job cuts will cost between $50 and $75 million during the third quarter of the company’s current fiscal year.
Archer Daniels Midland said it first will offer employees a chance to voluntarily retire early if they are at least 57 years old and meet other requirements. Employees have until the end of January to take the retirement package. After that, Archer Daniels Midland will cut the remaining number of jobs needed to meet the 1,000 mark.
Archer Daniels Midland employs 30,000 people worldwide. The company operates everything from shipping barges to ethanol plants and big factories where corn is turned into a rainbow of engineered food ingredients. The company can be both helped and hurt by big swings in crop prices. On the one hand, it can make more money by selling grain overseas. But when corn prices shot up early this summer, it meant Archer Daniels Midland had to pay a lot more for its raw ingredients, which cut the profit margin in its corn processing division.
The reasons behind big price swings for corn and soybeans vary. One of the biggest is the historically low level of grain reserves. The U.S. ethanol industry consumes about 40 percent of the U.S. corn crop, and global livestock producers are consuming more soybeans and corn to feed newly wealthy customers in Asia. Farmers have had a hard time meeting the demand. When reserves get low, global traders get jittery and bid up prices quickly.
A big part of Archer Daniel Midland’s business is guessing which way those prices are going to move.
Gold and corn prices ended the year higher Friday, even after sell-offs that wiped out big gains from a summer rally.
The February gold contract rose $25.90, or 1.7 percent, to settle at $1,566.80 an ounce. Corn for March delivery gained 8.5 cents to $6.465 per bushel. Both gold and corn hit all-time highs this summer, and both commodities fell this winter for different reasons.
Not all metals ended the year higher. The downturn this fall left both silver and copper down for the year, with copper dropping more than 20 percent.
But gold and corn, two of the most high-profile commodities, kept their value from a volatile year. Gold was driven higher by anxious traders who didn’t want to invest in riskier stocks or bonds. Corn prices shot up on worries of a global food shortage. Those worries receded this fall as stocks rose and food supplies grew.
Even though prices have fallen, many traders think 2012 could offer another roller coaster of a ride for commodities investors.
“I think it’ll happen all over again,” analyst George Gero said about the spike in gold prices. He said 2011 marks the 11th straight year that gold has closed higher. With political tensions brewing in North Korea and Iran, and financial problems continuing in Europe, Gero said gold’s rise is far from over.
Corn prices have already started climbing again on persistent worries that growing demand will outstrip supplies. Booming demand for livestock and crop-based fuels has outpaced farmers’ ability to grow more food.
Gold is still up about 10 percent from its closing price of $1,421.40 at the end of last year.
This summer was a hot one for commodities trading.
Gold closed at a record high of $1,891.90 Aug. 22. The big jump came after ratings agency Standard & Poor’s downgraded U.S. debt, leading investors to become fearful of turbulence in financial markets. That anxiety make gold a relatively safe bet for investors looking to protect their money.
Gold prices started to sink this autumn after traders started to think gold prices had been driven too high by speculators. Inflation fears also started to decline after reports showed the U.S. economy was gaining steam, and the dollar started to gain value against the euro.
Corn rose and fell for different reasons. For the past decade, demand for grain and beans has risen faster than supplies. More consumers in Asia are eating meat, so the livestock industry there is buying more feed. In the United States, federal ethanol mandates mean that about 40 percent of the U.S. corn crop is used to make gasoline.
The supply worries pushed corn to a record $7.99 in June. But the high prices lured farmers into planting more corn. A hot summer didn’t damage the corn crop as much as traders thought it would, and by this fall the world corn supply looked much healthier than investors expected.
The surplus corn prices pushed corn below $6 a bushel, which made prices negative for the year. But prices rose in December because hot weather in South America might cut exports from that region. Corn is now slightly higher than the $6.29 closing price at the end of last year.
Most commodities closed higher Friday. March silver gained 60 cents to end at $27.915 an ounce. Still, silver is down 10 percent from its closing price of $30.94 on Dec. 31 last year.
Copper for March delivery gained 6.6 cents Friday to end at $3.436 per pound. That leaves copper down 23 percent from its closing price of $4.45 per pound on Dec. 31.
Other industrial metals also gained Friday. March palladium gained $32.40 to $656.15 an ounce. January platinum rose $38.10 to $1,404.90 an ounce.
March wheat gained 7.5 cents to finish at $6.5275 per bushel. January soybeans rose 10.75 cents to $12.0775 per bushel.
Benchmark crude oil lost 82 cents to finish at $98.83 per barrel on the New York Mercantile Exchange. Heating oil fell 0.59 cents to end at $2.9142 per gallon, gasoline futures dropped 1.2 cents to $2.6574 per gallon and natural gas lost 3.9 cents to $3.016 per 1,000 cubic feet.
In this photo taken July, 2009, the ADM logo is seen on a rail car that carries grain at the Archer Daniels Midland Company plant in Decatur, Ill. Agribusiness conglomerate Archer Daniels Midland Co. announced plans Wednesday, Jan. 11. 2012 to cut 1,000 jobs, or about 3 percent of its total workforce, with the majority of the positions being salaried staff. (AP Photo/Seth Perlman)(Credit: AP) 
In this photo taken July, 2009, the ADM logo is seen on a rail car that carries grain at the Archer Daniels Midland Company plant in Decatur, Ill. Agribusiness conglomerate Archer Daniels Midland Co. announced plans Wednesday, Jan. 11. 2012 to cut 1,000 jobs, or about 3 percent of its total workforce, with the majority of the positions being salaried staff. (AP Photo/Seth Perlman)(Credit: AP) 