Archer-Daniels-Midland Revises Sales Figures Amid Investigation

Archer-Daniels-Midland (ADM) has revised its intersegment sales figures for the last three years amid a widening internal investigation into its financial reporting.

The food processing and commodities trading company based in Chicago has also disclosed a $137 million U.S. impairment charge related to its animal nutrition unit.

Operating profits and intersegment revenues at its nutrition business were adjusted down by tens of millions of dollars a year in 2021, 2022 and 2023, the company said in a regulatory filing.

In January, ADM stunned Wall Street when it suspended its chief financial officer (CFO), Vikram Luthar, pending an investigation into accounting practices at its nutrition unit.

Archer-Daniels-Midland’s stock has since plunged, wiping more than $7 billion U.S. from the company’s valuation.

Year-to-date, ADM stock is down 25% and trading at $54.91 U.S. per share.

Recently, Archer-Daniels-Midland said that the material weakness it has uncovered in its internal controls wasn’t expected to have a significant impact on its earnings moving forward.

The company also recently confirmed that certain current and former employees have received subpoenas from the U.S. Justice Department.

News of the revised sales figures comes as Archer-Daniels-Midland also reported its fourth quarter 2023 financial results and offered guidance for the year ahead.

The company said that it expects earnings per share (EP) of $5.25 U.S. to $6.25 U.S. for all of 2024, which would be down 18% from 2023 levels at the midpoint of the range.

Archer-Daniels-Midland also said that it plans to buyback $2 billion U.S. of its own stock over the coming year.

The stock of ADM is up 3% in premarket trading today (March 12).

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