Archer Daniels Midland Co. has doubled its cost-savings goal to $400 million by the end of the year.
The agribusiness giant said Thursday it decided to increase the goal after reached its 2014 target of $200 million more than six months early. The company said it achieved savings by emphasizing maintenance, procurement, and improving energy efficiency.
“We’ve sold or are working to sell businesses that we don’t expect will meet our returns criteria long-term,” president and chief operating officer Juan Luciano told investors at the BMO Farm to Market conference in New York City.
“With businesses that can be improved, we’ve taken decisive steps to enhance performance, either by reducing invested capital, managing costs and production levels, or repurposing the asset entirely.”
ADM has announced the sale of its South American fertilizer business and plans to sell its global chocolate and Brazilian sugar ethanol businesses.