Minnesota Business Updates
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■ ADM considers headquarters move
■ Cargill accused of land grab
Archer Daniels Midland, the world’s largest grain processor, is considering relocating its Decatur, Illinois, headquarters to reflect its evolution into a more global company. ADM said it is currently having discussions with public officials and advisors to determine where it will relocate. It only plans to about 100 workers at the new global headquarters center, according to the Chicago Tribune. ADM is considering locations in Minneapolis, Dallas, Atlanta and Chicago. ADM’s preferred site is Chicago, according to a knowledgeable source. The company declined to offer specifics. O’Hare International Airport is a draw, the source said. The office of Mayor Rahm Emanuel said it will work with the company to ensure its corporate headquarters remains in the state. “Our company is growing and becoming more global and more customer-centric,” Patricia Woertz, ADM chairman and chief executive officer, said in a statement. “To continue to succeed, we need a global center in a location that allows us to travel and work efficiently with customers and employees throughout the world. We also need an environment where we can attract and retain employees with diverse skills, and where family members can find ample career opportunities.” ADM was founded in 1902 in Minneapolis.
Minnesota-based Cargill bought a large area of farm land in Colombia many times bigger than the legal limit by setting up dozens of “shell companies”, violating the spirit of agrarian reform laws, social justice group Oxfam said. Oxfam says that Cargill’s purchase of at least 130,000 acres through companies registered from 2010 and 2012, all listing the same agricultural activity and address, may have broken the law. Cargill spokeswoman Lori Johnson told Reuters the land in question was “not suitable for growing crops on any scale without significant investment,” for example to correct acidic soils and build infrastructure to transport crops. “Where we disagree with Oxfam is on what are the policies that really lead to stability, poverty reduction and increased food security. And, in this particular instance we clearly disagree with their interpretation of the law,” Johnson said. Colombia has one of the highest rates of land concentration in the world, Oxfam says, with 80 percent of the land owned by 14 percent of landowners. Legal limits on land purchases are a key part of Colombia’s land-reform effort. Individuals and companies are only able to buy much smaller areas of land up to 4,262 acres.
■ Cargill closing feedlot The lingering Texas drought has led Minneapolis-based Cargill to anounce plans to close a cattle feedlot. The Plainview Daily Herald reported Tuesday that the Cargill yard in Lockney will shut down next summer. Cargill spokesman Mike Martin cited dwindling numbers in the region’s cattle supply for the planned closure of the feedlot, about 45 miles northeast of Lubbock. He also says the cost of feed has risen during the Texas drought going back to 2011. Cargill Cattle Feeders Lockney opened in 1985. The site employs about 45 workers and can handle about 6,200 cattle.
■ Target lays off 150 Target let 150 employees go from its corporate headquarters in Minneapolis in October. The company said the cuts were necessary to “eliminate duplications” and because of shifting roles to focus on its top priorities. Target said its goal is meeting its increasing number of digitally savvy customers. Target also said it will be aggressively seeking e-commerce and technology workers to help in areas like mobile sales, site merchandising and user experience.
10 • november 2013 • MN Valley Business
■ Fastenal misses estimates Fastenal Company reported that its third-quarter net income increased to $119.35 million or $0.40 per share, from $109.32 million or $0.37 per share, last year. On average, 12 analysts polled by Thomson Reuters expected the company to report profit per share of $0.41 for the quarter. Analysts’ estimates typically exclude special items. Net sales rose year-over-year to $858.42 million, from $802.58 million, a year ago. The company said its sales growth of 7 percent was impacted by the gain of one business day versus the prior year. Analysts expected revenue of $862.54 million for the quarter.
■ General Growth buys JCP office Mall owner General Growth Properties bought retailer JC Penney’s office building in New York City, from Jared Kushner Group for about $150 million in an all-cash deal, the New York Post reported, citing unnamed sources. The deal was signed by GGP to get ahead of the sales process being started by real estate-focused investment bank Eastdil Secured, the Post reported. GGP owns 128 million square feet in 123 malls in the United States, including River Hills Mall in Mankato.