Archer-Daniels-Midland Shares Fall 7%

(Reuters) – Archer-Daniels-Midland shares fell 7% premarket on Tuesday after the global grains merchant cut its adjusted annual profit forecast and announced amendments to previous financial statements due to accounting irregularities.

The company lowered its 2024 adjusted earnings per share forecast to a range of $4.50 to $5, down from the earlier estimate of $5.25 to $6.25.

In March, ADM corrected six years of financial data following an internal investigation that revealed improper recording of some sales between business units.

The accounting issues have triggered several government investigations and contributed to the departure of Chief Financial Officer Vikram Luthar.

The restated filings will address newly identified errors concerning intersegment sales for the Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition segments, as revealed by the company late on Monday (NASDAQ:MNDY).

ADM does not anticipate any material impact and is working to finalize the restatements as soon as reasonably practicable.

The company will amend its fiscal year 2023 Form 10-K and the statements for the first and second quarters of this year.

Meanwhile, ADM reported adjusted net income of $1.09 per share for the third quarter ended September 30, below the average analyst estimate of $1.25, based on data compiled by LSEG.