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ADM expands animal feed recall due to elevated mineral levels

EditorBrando Bricchi
Published 06/10/2024, 05:46 PM

QUINCY, Ill. – ADM Animal Nutrition, a division of Archer Daniels Midland Company (NYSE: NYSE:ADM), has broadened its ongoing animal feed recall to include additional products that may contain harmful levels of various minerals. The recall, initially announced on March 30 and April 11, 2024, now encompasses a wider range of products due to elevated magnesium, sodium, calcium, chloride, and phosphorus levels, which could adversely affect a variety of farm animals.

The affected livestock includes cattle, chickens, equine, goats, lambs, llamas, rabbits, sheep, and swine. The expanded recall list specifies the product names, lot numbers, sizes, and the species impacted, along with the potential clinical signs such as weight loss, weakness, increased thirst, reduced feed conversion, and possible mortality.

The recall dates back to products distributed as early as January 17, 2024, and spans several states including but not limited to Illinois, Missouri, Ohio, Iowa, Nebraska, and Texas. ADM has not received any reports of illness related to the recalled products to date.

The company advises customers who have purchased the recalled feed to discontinue its use immediately and return it to their distributor or directly to ADM Animal Nutrition for a full refund.

This recall expansion reflects ADM's commitment to animal health and safety. The company is a significant global agricultural supply chain manager and processor, known for its broad portfolio of ingredients and solutions for human and animal nutrition.

The detailed list of recalled products, including the specific lot numbers and distribution dates, is available for customers to review. ADM has set up a customer inquiry line at 800-217-2007, operating Monday through Friday, 8 a.m. to 4 p.m. Central time, for further assistance.

This news is based on a press release statement from ADM Animal Nutrition.

In other recent news, agricultural powerhouse ADM has announced a cash dividend of 50 cents per share for shareholders, marking its 370th consecutive quarterly payment. This development showcases the company's financial stability and commitment to returning value to its shareholders. In parallel, ADM has reported its Q1 2024 earnings, delivering an adjusted earnings per share of $1.46 and adjusted segment operating profits of $1.3 billion, despite facing market challenges. The company's trailing fourth quarter average adjusted Return on Invested Capital (ROIC) stood at 11.2%. Amid a 24% decrease in adjusted segment operating profit year-over-year, ADM maintains its full-year guidance unchanged. These are part of the recent developments for the company, which continues to emphasize its commitment to sustainability and innovation as part of its core business strategy. ADM's operations span across a broad range of sectors, reflecting its key role in the global agricultural supply chain.

InvestingPro Insights

In light of the recent product recall by ADM Animal Nutrition, it's important for investors to consider the broader financial health and strategic moves of Archer Daniels Midland Company (NYSE: ADM). According to InvestingPro data, ADM boasts a strong market capitalization of $30.64 billion, underlining its significant presence in the agricultural industry. The company's P/E ratio stands at a competitive 10.84, with an adjusted P/E for the last twelve months as of Q1 2024 at an even more attractive 9.26, suggesting that the stock could be undervalued compared to earnings.

From an investor's perspective, ADM's long history of dividend payments, which have been maintained for 54 consecutive years, reflects a commitment to shareholder returns. This is further evidenced by the company's high shareholder yield, one of the InvestingPro Tips. Moreover, ADM's management has been actively buying back shares, indicating confidence in the company's value and future prospects. Another InvestingPro Tip highlights ADM's strong free cash flow yield, which is often a sign of a company's ability to sustain and grow its operations.

While ADM's revenue has seen a decrease of 10.07% over the last twelve months as of Q1 2024, the company's fundamentals, including a dividend yield of 3.26%, remain solid. Investors looking for more in-depth analysis and additional InvestingPro Tips can explore the 12 additional tips available at https://www.investing.com/pro/ADM. To gain access to these insights, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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