Milling & Baking News - August 15, 2017 - 1
THE NEWS WEEKLY OF GRAIN-BASED FOODS
AUGUST 15, 2017
bakingbusiness.com / foodbusinessnews.net
GRAIN MARKET ROUNDTABLE
approaches to covering
flour in 2017-18
Story on Page 20
Corn outturn down
7%, soybeans up 2%
WASHINGTON - In its Aug. 10 Crop
Production report, the U.S. Department
of Agriculture forecast 2017 outturn of
corn at 14,153 million bus, down 7%
from 2016, and production of soybeans
at a record 4,381 million bus, up 2%.
All wheat production was estimated
at 1,739 million bus, down 1% from
the July forecast and down 25% from
2016, including winter wheat at 1,287
million bus, up 1% from July but down
23% from 2016; durum at 51 million
bus, down 12% from July and down
51% from 2016; and spring wheat
other than durum at 402 million bus,
down 5% from July and down 25%
from 2016. The U.S.D.A. estimates
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Flowers quarterly results undercut
by Warehouse segment slide
THOMASVILLE, GA. - A 10% volume
drop in the Warehouse Delivery segment
of Flowers Foods, Inc. pushed sales and
earnings downward in the company's
second quarter ended July 15.
In connection with the quarterly results, Flowers revised downward its financial guidance for 2017. The company
also offered an update on its Operation
Centennial restructuring program.
Flowers net income in the second
quarter was $44,740,000, or 21c per share
on the common stock, down 13% from
$51,155,000, or 24c per share, in the second
quarter of 2016. Sales were $926,639,000,
down 0.9% from $935,025,000.
Adjusted net income was down 8%.
"We continue to take decisive action to
focus on the consumer and become a more
efficient, streamlined organization," said
Allen L. Shiver, Flowers Foods president
and chief executive officer. "Our portfolio
of bread brands, bolstered by the strength
of Dave's Killer Bread (D.K.B.), continues to gain market share and improve
our competitive position. In our cake
business, we are taking action to address
share losses and improve profitability."
Results of the Flowers' Direct-StoreDelivery segment were nearly flat in the
second quarter. Earnings before interest
and taxes were $79,564,000 in the second
quarter, down 0.7% from $80,135,000 in
the second quarter of 2016. Sales were
$792,892,000, up 1.3% from $785,767,000.
Year-to-date EBIT in the segment was
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'Complete retrofit' planned for
ADM Milling Oklahoma mill
OVERLAND PARK, KAS. - ADM
Milling Co. has announced a major
modernization of its Enid, Okla., flour
mill. The project will replace the two
milling units currently operating with
a single, highly automated milling unit.
"The Enid flour mill has served as an
important hub for the region's wheat
harvest for many decades, and upgrades to the facility will provide even
better service to our customers in the
future," said Mark Kolkhorst, president
of ADM Milling.
According to the 2017 Grain & Milling
Annual published by Sosland Publishing
Co., ADM's mill at Enid has daily flour
production capacity of 18,000 cwts. The
mill produces bulk flour and 5-lb bags.
While the company did not announce
what milling capacity will be at Enid
when the project is completed, Mr.
Kolkhorst indicated that the mill will
be enlarged. He said the new "state-ofthe-art unit" when completed "will efficiently meet existing customer needs
and provide capacity to reach out to
Speaking with Milling & Baking News
Continued on Page 11