Archer Daniels Midland 2010 Annual Report Download - page 4

ADM’s cost-management initiatives helped reduce manufacturing costs by $233 million, and our sales, general
and administrative expenses by $14 million, compared to scal 2009. In our performance priority, we increased
participation in our pay-for-performance incentive program, which continues to provide for rewards almost entirely
based upon companywide performance. We believe this structure fosters high levels of teamwork and outstanding
overall outcomes. In sustainability, we committed to achieving a 10 percent improvement in energy efciency
between 2010 and 2015, completed a data-collection system for water consumption and discharge, and extended
programs to improve the integrity of our soybean and cocoa supply chains. For safety, as we noted earlier, we
continued to make progress on our path to zero incidents, zero injuries.
We also celebrated two notable milestones: We marked 85 years of trading on the New York Stock Exchange, a
testament to our long legacy of success, and we were named the Most Admired Company in the food industry by
Fortune magazine, an important step toward achieving our vision of being the most admired global agribusiness.
Once again in 2010, ADM succeeded in using our global asset base to capitalize on opportunities—and deliver
strong returns—amid dynamic economic circumstances and market conditions. In the process, our colleagues
demonstrated the agility and acumen they bring to the task of serving vital needs.
Growing shareholder value as we grow our footprint
Our performance in scal 2010 gives us greater condence as we make a clear, strong commitment to growing
value for ADM shareholders. This year begins a new phase in ADM’s protable growth.
As I write this, we are nalizing the last project of the large, three-year capital construction program. Our global
footprint and our strong balance sheet provide ADM with the foundation and exibility to build an even stronger,
larger global business.
We will grow both organically and through strategic additions to ADM’s footprint. This demands a strong capital-
allocation process and a pipeline of good projects. We have built that process, and continue to ll that pipeline. We
will invest in projects that, when fully integrated into our business, enable us to meet or exceed company return
rates of 2 percent over our weighted average cost of capital.
One area that will be particularly important in delivering protable growth is our global oilseeds business. We
have set a goal of 7 to 10 percent compound annual growth in our oilseed crush volume—a rate roughly twice
that expected of the market as a whole. We will look to increase our access to key supply regions like South
America and Central and Eastern Europe, growing mostly through acquisitions. And we will look to enhance our
participation in fast-growing demand markets like China and India.
And, among the mix of opportunities to grow shareholder value, we will continue to include repurchasing shares.
ADM’s commitment to growing value for our stockholders compels us to perform with excellence as we go about
our vital work. Whether we are evaluating growth opportunities, looking for ways to improve safety performance
or seeking new markets to enhance the value of our assets, the 29,000 men and women of ADM remain focused
on building an even stronger company to deliver even greater results. I am condent that ADM will rise to this
inspiring challenge.
Patricia A. Woertz
Chairman, CEO and President