Archer-Daniels Midland Company (NYSE: ADM) Q3 Earnings Report
Investing.com — Shares of Archer-Daniels Midland Company dropped almost 6% premarket Tuesday after the agribusiness giant released its preliminary third-quarter earnings report, revealing challenges across several segments.
Financial Overview
ADM reported net earnings of $18 million for the quarter, with adjusted net earnings at $530 million, reflecting a year-over-year decline. The company recorded a significant $461 million non-cash charge, driven by a valuation reduction in its Wilmar equity investment.
CEO's Remarks
CEO Juan Luciano described the quarter as “challenging,” with mixed results across business lines. The Carbohydrate Solutions division performed well, while both Ag Services and Oilseeds (AS&O) and Nutrition segments lagged behind expectations.
Luciano attributed the decline to “softer than expected market conditions” and a slower-than-anticipated improvement pace in certain business areas. ADM’s earnings per share (EPS) is anticipated at $0.04, with adjusted EPS at $1.09, both down compared to last year.
Adjusted Guidance
In light of current challenges, ADM adjusted its full-year EPS guidance, now forecasting adjusted earnings in the range of $4.50 to $5.00 per share.
Restatement and Financial Controls
Further complicating matters, ADM announced it will restate its 2023 fiscal year Form 10-K and the first two quarters of 2024 Forms 10-Q, while it has also suspended its Q3 conference call.
The restated restatements, prompted by segment reporting errors, are expected to have a minimal impact on consolidated financials but highlight ongoing issues with financial controls.
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