Archer-Daniels-Midland to Restate Results on More Accounting Concerns, Stock Drops
Key Takeaways
- Archer-Daniels-Midland said it will again restate results as it has discovered more concerns about its accounting practices.
- The company also canceled a conference call with analysts after releasing a preliminary third quarter earnings report that showed profit well below estimates.
- CEO Juan Luciano blamed softer than anticipated market conditions and the speed of ADM's improvement efforts.
Shares in Archer-Daniels-Midland (ADM) sank as the maker of agricultural commodities canceled an earnings conference call scheduled for Tuesday and announced restating previous results amid additional concerns about its accounting practices.
The company reported that after “ongoing dialogue” with the staff of the Securities and Exchange Commission (SEC), it will amend Form 10-K for fiscal year 2023 and Form 10-Q for the first and second quarters of 2024 “to restate the segment information disclosure.”
ADM's Accounting Woes Persist, Earnings Contract
ADM explained that along with problems discovered earlier that led to a previous restatement, it has also “identified errors concern additional intersegment sales for each of its Ag Services and Oilseeds, Carbohydrate Solutions and Nutrition segments.”
The company added that it was working to complete the restatements “as soon as reasonably practicable.”
ADM also released preliminary third quarter results, with net earnings of $530 million, or $1.09 per share. Both were well below forecasts.
CEO Juan Luciano said the performance was affected by “softer than expected market conditions and the pace of our planned improvement efforts.”
Archer-Daniels-Midland shares were trading 8.7% lower at roughly $50 per share at 1:50 p.m. Eastern.
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