ADM Faces Multiple Challenges Amid Accounting Probe and Asset Sales

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Source: Yahoo Finance
ADM Faces Multiple Challenges Amid Accounting Probe and Asset Sales
Photo: Yahoo Finance
TL;DR Summary

Archer-Daniels-Midland Co. faces an uphill battle to recover from an $8 billion value loss due to an accounting investigation, with its nutrition unit failing to live up to expectations despite multibillion-dollar investments. The company's core agricultural commodities are also facing challenges, with rising grain inventories leading to predictions of further price declines. While ADM is taking aggressive steps to fix its nutrition business, including slashing product lines and considering asset sales, investors may remain cautious. The company's CEO aims to restore profit growth and margin closer to previous levels, but the road to recovery may be long, especially with ongoing federal investigations and a struggling nutrition division.

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