Archer Daniels Midland 2007 Annual Report Download - page 20

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12
Item 1A. RISK FACTORS (Continued)
The Company is subject to numerous laws and regulations globally which could adversely affect the Company’s
operating results.
The Company is required to comply with the numerous and broad reaching laws and regulations administered by
United States federal, state, local, and foreign governmental agencies relating to, but not limited to, the sourcing,
transporting, storing, and processing of agricultural raw materials as well as the transporting, storing and
distributing of related agricultural products including commercial activities conducted by Company employees and
third parties globally. Any failure to comply with applicable laws and regulations could subject the Company to
administrative penalties and injunctive relief, civil remedies, including fines, injunctions, and recalls of its products.
The production of the Company’s products requires the use of materials which can create emissions of certain
regulated substances. Although the Company has programs in place throughout the organization globally to guard
against non-compliance, failure to comply with these regulations can have serious consequences, including civil
and administrative penalties as well as a negative impact on the Company’s reputation.
In addition, changes to regulations may require the Company to modify existing processing facilities and/or
processes which could significantly increase operating costs and negatively impact operating results.
The Company is exposed to potential business disruption, including but not limited to transportation services,
and other serious adverse impacts resulting from acts of terrorism or war, natural disasters and severe weather
conditions, and accidents which could adversely affect the Company’s operating results.
The assets and operations of the Company are subject to damage and disruption from various events which include,
but are not limited to, acts of terrorism or war, natural disasters and severe weather conditions, accidents,
explosions, and fires.
The potential effects of the conditions cited above include, but are not limited to, extensive property damage,
extended business interruption, personal injuries, and damage to the environment. The Company’s operations also
rely on dependable and efficient transportation services. A disruption in transportation services could result in
supply problems at the Company’s processing plants and impair the Company’s ability to deliver processed
products to its customers in a timely manner.
Item 1B. UNRESOLVED STAFF COMMENTS
The Company has no unresolved staff comments.