The stock of Archers-Daniels-Midland (ADM) is down 12% on news that the company’s chief financial officer (CFO) has been placed on leave amid an accounting probe at the agriculture giant.
The Chicago-based company, which is involved in food processing and commodities trading, said that it placed CFO Vikram Luther on “administrative leave” as it investigates its accounting practices and financial statements.
Specifically, Archers-Daniels-Midland said it has brought in outside counsel and engaged the board of director’s audit committee to look into the accounting practices at its nutrition reporting segment.
The company said it is responding to a voluntary document request from the U.S. Securities and Exchange Commission (SEC) and that it is cooperating with the Wall Street regulator.
Archers-Daniels-Midland added that it has named Ismael Roig, who joined the company in 2004, as its interim CFO while the investigation is carried out.
At the same time, the company said that it is delaying the release of its fourth quarter and 2023 financial results, and it is withdrawing its previous forward guidance for the nutrition group.
Archers-Daniels-Midland’s nutrition segment reported revenue in 2022 of $8 billion U.S. The company’s total revenue in 2022 was $102 billion U.S.
Prior to today, the stock of Archers-Daniels-Midland had declined 19% over the last 12 months to trade at $68.19 U.S. per share.
