Archer-Daniels-Midland Stock: Cost-Cutting Plan Targets $750M Savings

Agricultural commodities giant Archer-Daniels-Midland (ADM) has unveiled an extensive restructuring initiative aimed at strengthening its market position amid challenging conditions. The comprehensive cost-reduction strategy targets savings between $500 million and $750 million over the next three to five years. As part of this transformation, the company plans to reduce its global workforce by approximately 600 to 700 positions during 2025. Despite these cost-cutting measures, ADM has announced a two percent increase in its quarterly dividend, raising it to 51 cents per share.

Financial Performance Overview

The company's recent financial results reflect ongoing market challenges, with fourth-quarter 2024 earnings reaching $567 million, or $1.17 per share, falling short of market expectations despite showing modest year-over-year growth. Revenue declined by 6.4 percent to $21.5 billion in the same period. Looking ahead, ADM projects adjusted earnings per share between $4.00 and $4.75 for fiscal year 2025, a forecast that accounts for persistent market difficulties and uncertainties in biofuel and trade policies.

Ad

Fresh Archer-Daniels-Midland information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Source StockWorld