Archer-Daniels-Midland Co. said it uncovered additional accounting errors , pushing the grain trading giant to cancel its quarterly earnings call as it reports preliminary sales estimates below analyst expectations.
The company said it has identified errors concerning sales around its ag services and oilseeds, carbohydrate solutions and nutrition segments. ADM uncovered the issues while testing new controls implemented in the aftermath of an accounting scandal that led to the resignation of Chief Financial Officer Vikram Luthar earlier this year.
ADM will amend its 2023 Form 10-K securities filing as well as financial statements for the first and second quarters of this year, the company said. No material impacts are expected. The restatements will be completed “as soon as reasonably practicable,” according to a statement.
The grain trader released a preliminary third quarter earnings report showing sales declines across its business segments. ADM also slashed its full-year outlook and postponed its earnings call until it completes its financial restatements.
“The integrity of our internal controls and financial reporting is very important. We strive for accuracy and transparency in all aspects of our business,” CEO Juan Luciano said in a statement. “While we have made progress we are committed to continued strengthening of our internal financial controls.”
Preliminary results showed earnings per share were below analyst estimates . ADM reported double-digit percentage declines in ag services and oilseeds as well as its troubled nutrition segment, which has been at the center of the scandal that was uncovered following news of a probe by the U.S. Security and Exchange Commission .
ADM has struggled to diversify beyond traditional grain trading, despite pushing to become a major player in the nutrition space. In the wake of the accounting scandal, the company was sued by an individual investor who claimed he was misled by the performance of the nutrition unit.
Shares slid about 5% early Tuesday following the news of additional accounting errors. ADM shares tumbled 24% in March following the disclosure of the SEC investigation in what was the company’s largest one-day drop since the Great Depression.
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