Archer Daniels Midland (ADM), a prominent agriculture company, has announced that its chief financial officer, Vikram Luther, has been placed on administrative leave pending an investigation into the company’s accounting practices. As a result of this development, ADM shares experienced a significant decline of 12% in premarket trading, reaching $60.01.
According to a statement from ADM, Luther’s leave is in response to an inquiry initiated by independent counsel appointed by the company and the board’s audit committee. This investigation specifically focuses on certain accounting practices and procedures within ADM’s Nutrition reporting segment. The company has stated that it is fully cooperating with the Securities and Exchange Commission (SEC) following a voluntary document request.
To fill the void created by Luther’s absence, ADM has appointed Ismael Roig as the interim chief financial officer. Roig has been with the company since 2004 and brings valuable experience to his new role.
In light of these recent developments, ADM has decided to postpone the release of its fourth-quarter and 2023 earnings reports. The company expects to report adjusted earnings of more than $6.90 per share for the year, disappointing analysts who had anticipated a profit of $7.27.
Due to the ongoing investigation, ADM has withdrawn all forward-looking guidance pertaining to its nutrition reporting segment.