The ratings on Archer Daniels Midland Co. (ADM) are supported by its position as one of the world's leading agribusiness companies, with major market positions in agricultural processing and merchandising, a moderate financial profile, and an experienced management team. This is offset by the continuing challenging agricultural operating environment, exacerbated by insufficient returns on recent investments, and Standard&Poor's belief that the company will be acquisitive in the intermediate term. Over the years, ADM steadily has built up its position as an important materials supplier to food and beverage companies as well as to farmers. Although ADM is a diversified commodity company in inherently cyclical businesses, its revenues and earnings are closely tied to oilseeds and corn processing. A
