Archer-Daniels-Midland Reports Profit Drop

(Reuters) – Global grain trader Archer-Daniels-Midland (ADM) reported a decline in third-quarter profits on Monday. In its delayed filing, the company announced a revision of its total segment operating profit calculation.

On November 5, ADM postponed its earnings statement and revised its 2024 profit outlook due to the need to amend previous financial statements following the discovery of accounting irregularities.

Earlier in March, ADM was compelled to correct six years of financial data when an internal investigation revealed improper recording of sales between its nutrition business and other core units.

CEO Juan Luciano stated the company's focus is on enhancing internal controls. He remarked, "Looking ahead, while we foresee softer market conditions into next year, we are taking actions to improve performance."

The total segment operating profit for the quarter decreased by 28.3% to $1.04 billion after restatement. Meanwhile, the Ag Services & Oilseeds segment profit dropped by 43% during the same period.

The company reported net earnings of $18 million, or 4 cents per share, for the quarter ending September 30, a significant decrease from $821 million, or $1.52 per share, from the previous year.