Milling & Baking News - March 15, 2005 - (Page 1)

Theinewsweeklyiofigrain-basedifoods MARCH 15, 2005 / Stock sale harbinger of more investment by ADM DECATUR, ILL. - The sale of its shares in Tate & Lyle P.L.C. could foreshadow stepped-up capital investment by Archer Daniels Midland Co., said G. Allen Andreas, ADM chairman and chief executive officer. Mr. Andreas commented on the Tate & Lyle sale March 7 at an ADM-hosted presentation before securities analysts. A day earlier, the company said it had sold its 27.9-million-share interest in Tate & Lyle P.L.C. for $271 million ADM said the sale resulted in an after-tax gain of $93 million, equal to 14c per ADM share on the common stock. The gain will be included in the company's financial results for the period ending March 31. In the second quarter, ADM recorded a $45 million gain, equal to 7c per share, from a sale of Tate and Lyle shares. Asked whether the sale represented a strategic shift for the company, Mr. Andreas said ADM's need for the liquidity afforded by investment holdings such as the Tate & Lyle stock has diminished. "Since the resolution of our commitments to potential litigation exposure ... we're no longer building liquid reserves that aren't directly applicable to our businesses," Mr. Andreas said. "We're focused on our agribusinesses and reinvesting our capital where it needs to be reinvested. "We're looking at shifting some of the more liquid marketable securities off of our balance sheet and putting them into direct work in our businesses." Mr. Andreas discussed ADM capital spending in his recent Continued on Page 14 Baker of the Year U.N. report takes negative view of acrylamide content in food GENEVA - A report from the Joint Expert Committee on Food Additives and Contaminants of the World Health Organization and the United Nations Food and Agriculture Organization warns "that the unintentional contaminant acrylamide in certain foods may be of public health concern since it has been shown to cause cancer in animals" and calls for "continued efforts to reduce acrylamide in food." Based on the committee's evaluation, the F.A.O. and W.H.O. recommended that efforts to reduce acrylamide levels in foodstuffs continue. "National food safety authorities should urge relevant food industries to work towards improving food preparation technologies that lower significantly the acrylamide content in critical Continued on Page 12 inside Sara Lee Bakery Group N E W S F E AT U R E Story on Page 19 THIS WEEK New Cargill whole grain corn products 16 Wheat Council names president 17 Ingredient FIS: Benefits of fiber as an ingredient 33 Week sponsored by 54

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Milling & Baking News - March 15, 2005