Key Takeaways
- Archer-Daniels-Midland said it expects to report a “material weakness” in its internal controls linked to its financial reporting.
- In a filing Friday, ADM said that it was also postponing the release of its annual report until March 15, as it investigates accounting issues.
- ADM put its finance chief on administrative leave in January pending an investigation into accounting practices at its nutrition unit.
Shares of Archer-Daniels-Midland (ADM) advanced Friday after the agricultural commodity giant said a “material weakness” in the company’s internal financial reporting practices won’t have a broad impact on overall earnings.
In a filing Friday, ADM said that it was also postponing the release of its annual report until March 15, as it investigates its accounting issues.
The report was scheduled to be released in February, and the new date for its release is within the two-week delay allowed by Securities and Exchange Commission rules.
Shares of ADM plunged in late January after it cut its outlook for the 2023 fiscal year and put a top executive on leave pending its investigation into its accounting practices in its nutrition unit.
On Friday, ADM said in its filing that it “anticipates correcting certain intersegment sales,” and also expects to report a “material weakness in the Company’s internal control over financial reporting related to its accounting practices and procedures for intersegment sales.”
Still, it said that since the sales were between segments, it doesn’t “anticipate an impact to the Company’s consolidated balance sheets, statements of earnings, comprehensive income (loss), or cash flows.”
The Chicago-based grain merchant placed Chief Financial Officer (CFO) Vikram Luthar on leave in January, and appointed Ismael Roig, a veteran at the company, as the interim CFO.
ADM shares were up 2.4% at $54.39 at 12:23 p.m. ET Friday, but are down 25% this year.
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