Shares of Hormel Foods Corp (NYSE:HRL) ended Friday session in red amid volatile trading. The shares closed down -1.50 points or -4.00% at $36.01 with 3.09 million shares getting traded. Post opening the session at $37.34, the shares hit an intraday low of $36.00 and an intraday high of $37.34 and the price vacillated in this range throughout the day. The company has a market cap of $18.78 billion and the numbers of outstanding shares have been calculated to be 529.20 million shares.
Hormel Foods Corp (HRL) on September 7, 2016 announced that Jeffrey M. Ettinger will retire as chief executive officer on October 30, 2016. Ettinger will continue to serve as Hormel Foods chairman of the board. The Board of Directors elected James P. Snee to be the company’s next chief executive officer, effective October 31, 2016. Snee currently serves as president and chief operating officer.
Ettinger served as chairman of the board, president and chief executive officer from November 2006 to October 2015, when Snee was appointed president and Ettinger became chairman of the board and CEO. Ettinger joined Hormel Foods in 1989 and has served in a variety of roles, including senior attorney, product manager for Hormel® chili products and treasurer. In 1999, he was named president of Jennie-O Turkey Store — the largest subsidiary of Hormel Foods, based in Willmar, Minn. Ettinger was appointed president of Hormel Foods in 2004 and CEO effective January 1, 2006. He has served on the Hormel Foods Board of Directors since 2004, and currently serves on the boards of The Toro Company, Ecolab, Inc., North American Meat Institute, Grocery Manufacturers Association, The Hormel Foundation, The Hormel Institute and the Minnesota Business Partnership.
Under Ettinger’s leadership, Hormel Foods has grown through strategic acquisitions, organic growth and a continued focus on new product innovation. In 2016, Ettinger was named as one of the 30 World’s Best CEOs by Barron’s. In 2012, he was named Responsible CEO of the Year by Corporate Responsibility magazine. In addition, Ettinger is the founding chair of the company’s diversity and inclusion council, which aims to meet the growing needs of its diverse workforce and consumer base.
Shares of Archer Daniels Midland Company (NYSE:ADM) ended Friday session in red amid volatile trading. The shares closed down -1.21 points or -2.80% at $42.02 with 3.09 million shares getting traded. Post opening the session at $42.82, the shares hit an intraday low of $42.02 and an intraday high of $42.94 and the price vacillated in this range throughout the day. The company has a market cap of $24.01 billion and the numbers of outstanding shares have been calculated to be 581.76 million shares.
Archer Daniels Midland Company (ADM) on August 2, 2016 reported financial results for the quarter ended June 30, 2016.
Second Quarter 2016 Highlights (continued):
- EPS as reported of $0.48 includes a $0.09 per share charge related to LIFO, $0.17 per share of gains related to sales or revaluation of assets, and other charges of $0.01 per share. Excluding these items, adjusted EPS is $0.41.
- Trailing four-quarter-average adjusted ROIC was 5.7 percent, 90 basis points below our annual WACC of 6.6 percent.
- The effective tax rate for the quarter was 29 percent compared to 27 percent in the year-ago quarter. This quarter’s taxes included about $20 million of discrete tax items (about $0.03 per share).
- During the first six months of 2016, the company returned $0.8 billion to shareholders through dividends and share repurchases.
“After a challenging start to the year, general market conditions began to turn at the end of the second quarter, providing us with improved opportunities for the second half of the year,” said ADM Chairman and CEO Juan Luciano. “Weak grain handling margins and merchandising results continued for Ag Services. Results for Corn included strong performance in sweeteners and starches offset by lower ethanol results. Our Oilseeds operations leveraged their flex capacity to crush record volumes of soybeans in the second quarter as global protein demand continues to grow. WFSI saw strong growth in flavors and systems, with operating profit in line with the year-ago quarter.
“During the quarter, we continued to advance our strategic plan, acquiring full ownership of Amazon Flavors, a leading Brazilian manufacturer of natural extracts, emulsions and compounds. We added soybean crushing capability to our facility in Straubing, Germany, allowing us to utilize flex capacity while also meeting growing customer demand for non-GMO soybean meal and oil in Western Europe. We continued to invest in Asia’s growing and evolving food demand by further increasing our strategic ownership stake in Wilmar from 20 percent to 22 percent. In addition, we continue to make progress in the strategic review of our ethanol dry mills. We have implemented almost $150 million of new run-rate savings actions in the first half of the year and remain on track to meet our $275 million target by the end of the calendar year. Also, we repurchased about $500 million of shares in the first half as we continue to execute on our balanced capital allocation framework.
“The first half of the year was very challenging. However, with improved fundamentals, we anticipate a more favorable second half of the year.”