Archer Daniels Midland shares tumbled on Monday as the agribusiness giant said its chief financial officer has been placed under administrative leave amid an investigation into accounting practices in its nutrition segment.
ADM shares
ADM,
fell 18% in early trade, putting the stock on track for its worst single-session since Black Monday in 1987, when it dropped 19.9%, according to Dow Jones Market Data. It was the worst performer in the S&P 500
SPX
on Monday.
ADM said CFO Vikram Luther was put on immediate administrative leave following a Securities and Exchange Commission “voluntary” request for documents. The Chicago-based company said outside counsel and the board audit committee are looking at accounting practices at its nutrition segment, including intersegment transactions.
Ismael Roig, a 56-year-old executive who was president both of Europe, Middle East and Africa operations as well as president of animal nutrition, has been named interim CFO.
Through the first nine months of the year, nutrition accounted for $468 million of the company’s $4.67 billion of operating profit. The unit produces flavors and colors, specialty ingredients and nutritional supplements.
This year it has faced a struggling plant-based protein market, an explosion at a soybean processing plant that’s been impacting production and a restructuring of the animal nutrition unit.
ADM said all forward guidance on that segment was withdrawn as it delays publishing its fourth-quarter and full year 2023 results.
The company said it expects to deliver above $6.90 in adjusted earnings per share for the fiscal year, which compares to the $7.27 expected by analysts. ADM said its ag services and oilseeds and carbohydrate solutions units will report results in line with expectations it gave in the third quarter.
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