Archer-Daniels-Midland Co. (ADM) continues to grapple with accounting issues nearly 10 months after a scandal emerged, leading to further financial restatements for 2023 and 2024. Despite the company claiming no material impact on consolidated earnings, the scandal has significantly affected investor confidence, erasing $12 billion in market value and prompting investigations by the Department of Justice and SEC. ADM's internal controls over financial reporting remain under scrutiny, with the company working to implement new controls by year-end.
The US Justice Department is investigating Archer-Daniels-Midland's (ADM) ethanol trading operation as part of a broader probe into the company's accounting practices, focusing on whether ADM improperly accounted for hedges in its ethanol trading unit. This additional scrutiny comes after ADM confirmed a separate investigation into its Nutrition unit and disclosed that it had overstated the Nutrition unit's operating profit in its financial statements. ADM shares have dropped about 15% since the firm disclosed in late January that it had suspended its chief financial officer and was delaying financial results amid an internal probe.
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.
Archer-Daniels-Midland (ADM) disclosed that some employees have received subpoenas from the Department of Justice amid an ongoing investigation over its accounting practices, as the company reported a lower-than-expected fourth-quarter profit. The investigation relates to accounting issues within its Nutrition unit, leading to adjustments in previous financial statements. The company also faces a voluntary document request from the Securities and Exchange Commission. ADM's shares were up 2.4% in premarket trade, and it announced an additional $2 billion in share repurchases. The company expects lower earnings for 2024 due to lower margins and higher costs, and plans to implement worldwide enhancements to its internal controls.
Archer-Daniels-Midland Co (ADM) will postpone performance bonuses for some executives until completion of financial statements and audit amid an accounting probe focused on the nutrition segment, which had a significant impact on executive compensation. The investigation was prompted by a request for information from the U.S. Securities and Exchange Commission, leading to a 24% drop in ADM shares. The company has delayed the release of its full-year 2023 financial results and is reevaluating its executive compensation structure tied to operating profit growth of the Nutrition segment.
Archer-Daniels-Midland Co will postpone performance bonuses for some executives until completion of its financial statements and audit amid an accounting probe focused on its nutrition segment, which had a significant impact on executive compensation. The investigation, prompted by a request for information from the U.S. Securities and Exchange Commission, led to the delay and the sidelining of the chief financial officer. The company's Compensation and Succession Committee had tied long-term executive compensation to the Nutrition segment's operating profit growth, resulting in significant payouts to executives.
An Archer-Daniels-Midland shareholder has filed a class action lawsuit alleging that the company lied about the profitability of its nutrition segment, leading to a 24% stock plunge after news of a securities regulator's investigation into accounting practices. The lawsuit claims that executive stock awards incentivized false statements to investors and seeks damages for investors who bought ADM stock between April 30, 2020 and the date of the stock drop. ADM has stated it is cooperating with the regulator's investigation and has delayed releasing fourth-quarter results and its annual report.
An Archer-Daniels-Midland shareholder has filed a class action lawsuit alleging that the company lied about the profitability of its nutrition segment, leading to a 24% stock plunge after news of a securities regulator's investigation into accounting practices. The lawsuit claims that executive stock awards incentivized false statements to investors and seeks damages for investors who bought ADM stock between April 30, 2020 and the date of the stock drop. ADM has stated it is cooperating with the regulator's investigation and has delayed releasing fourth-quarter results and its annual report.
Archer-Daniels-Midland Co.'s stock plunged after placing its CFO on leave due to an accounting investigation, prompting the appointment of an interim CFO to rebuild investor trust. The company faces challenges in releasing accurate financial information and aligning processes with best practices, with the SEC's involvement suggesting potential whistleblower involvement. ADM's nutrition business struggles add to the crisis of trust, emphasizing the need for a commitment to transparent information dissemination.
Archer-Daniels-Midland (ADM) shares plummeted 24% after placing its CFO on leave amid an investigation into accounting practices at its Nutrition segment, leading to a cut in its 2023 profit forecast and a delay in fourth-quarter results. The SEC requested documents related to certain inter-segment transactions, adding uncertainty to ADM's struggling Nutrition segment. The company's stock closed at its lowest since February 2021, and at least four brokerages downgraded it. ADM is cooperating with the SEC, and until more clarity is provided, traders may turn to shares of Darling Ingredients and Bunge Global.
Archer-Daniels-Midland (ADM) is facing challenges in expanding beyond its legacy agricultural commodities trading business, with its CFO Vikram Luthar recently placed on administrative leave pending an investigation into accounting practices at the nutrition unit. The company's attempt to diversify into the nutrition business has faced setbacks, leading to a slashed profit target and a 24% plunge in its shares. The scandal has raised concerns about the company's leadership and future direction, as it grapples with declining earnings in its core crop trading business and struggles to meet its 2023 profit target.
Archer-Daniels-Midland (ADM) shares plummeted 22% as the company launched an accounting probe into its Nutrition segment, leading to the CFO being placed on leave and a cut in its 2023 profit forecast. The investigation, prompted by a voluntary document request from the SEC, has raised concerns about the segment's performance amid weak demand for meat alternatives and other products. The company's stock hit its lowest level since February 2021, and at least four brokerages downgraded ADM's stock following the news.
Agricultural trader ADM is under scrutiny following an accounting investigation, thrusting the company into the spotlight. The Financial Times reports that the investigation has raised concerns about the company's accounting practices, prompting investors to closely monitor the situation.
Archer-Daniels-Midland's shares plummeted 15% in premarket trading as the company launched an investigation into certain accounting practices at its Nutrition segment, leading to the placement of CFO Vikram Luthar on administrative leave and a downgrade in profit forecast for 2023. The probe, initiated at the request of the SEC, has raised uncertainty around the high-margin Nutrition segment, impacting the stock and prompting at least three brokerages to downgrade ADM's stock. The company appointed Ismael Roig as interim CFO and revised its adjusted earnings forecast for the fiscal year ended December 2023.
Archer-Daniels-Midland Co. places CFO on leave and cuts earnings forecast amid investigation into accounting practices, causing shares to drop as much as 16% in premarket trading. The probe, in response to a voluntary document request by the SEC, focuses on certain practices and procedures within the company’s nutrition reporting segment. ADM is withdrawing its outlook for the nutrition unit and expects to delay its fourth-quarter and full-year earnings release, while also expecting adjusted earnings per share for the year ended Dec. 31 to be above $6.90.
