In a conference call tied to the US-quoted agricultural giant’s fourth quarter earnings report, the executive highlighted the improved efficiency of its increasingly extensive network of ports and storage facilities in South America.
In response to a question about the ability to handle what Morgan Stanley analyst Gregory Van Winkle described as a “very large” soy bean crop in Brazil, Luciano said ADM is “ready to tackle big growth” in the months to come.
Using the Port of Santos as a point of reference, he noted that improvements to infrastructure south of the equator have helped the group save time and money by reducing vessel queues and loading times.
Management didn’t discuss its fleet of bulkers, which are controlled by affiliate ADM Harvest, but said earnings from its transportation division as a whole were solid in the final leg of 2012 despite challenges created by record low water levels on the Mississippi River.
The division, which at last check included a stable of nearly 2,000 tugs and barges, watched its bottom line slide by $5m to $48m year-on-year but the company said increased operating expenses were partially offset by higher freight rates.
ADM reported net earnings of $510m or $0.77 per share, for the three months to 31 December, versus $80m, or $0.12 per share, a year prior as revenues rose to $24.92bn $23.31bn despite negative margins for ethanol production and a sharp dip in demand.
Management said the company is forecasting about $1bn in capital spending, excluding acquisitions, for the 2013 calendar year but did not say if it some of the cash will be used to expand its fleet of bulkers, barges and line boats.
You can read ADM's earnings report in full by clicking on the link located under the Related Media section to the right of this article
