Archer Daniels Midland
was falling sharply Monday after the agriculture company placed its chief financial officer, Vikram Luther, under administrative leave as it investigates its accounting practices.
Archer Daniels
shares declined 12% in premarket trading to $60.15. Coming into the session, the stock has fallen 19% over the past 12 months.
In a statement, ADM said it placed Luther on leave pending an investigation by outside counsel for the company and the board’s audit committee “regarding certain accounting practices and procedures with respect to ADM’s Nutrition reporting segment.”
The company said it was responding to a voluntary document request from the Securities and Exchange Commission. The company said it was cooperating with the SEC.
ADM said it named Ismael Roig, who joined the company in 2004, as interim chief financial officer.
In connection with the announcement, ADM said it would delay the release of its fourth quarter and 2023 earnings. The company said it expects to report adjusted earnings of greater than $6.90 a share for the year. Analysts has been expecting profit of $7.27.
ADM said it was withdrawing all of its forward-looking guidance for the nutrition reporting segment.
The company’s nutrition segment reported revenue in 2022 of about $8 billion. ADM posted total revenue for 2022 of just under $102 billion.
Shares of larger rival
Bunge Global
were down slightly.
S&P 500
futures were up 0.3%.
Write to Joe Woelfel at [email protected]
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