ADM restates earnings in latest step to fix accounting issues

Archer-Daniels-Midland Co. restated previous earnings, after earlier this month identifying new accounting errors, in a key step to regain investor confidence. 

Consolidated results for 2023 and the first two quarters of this year haven’t been impacted by the review, the Chicago-based trader said in a statement. The restatements, which ADM said would be necessary when the accounting errors were announced, corrected figures for transactions within and between ADM’s businesses.

The move by ADM follows an accounting scandal that has since January wiped out billions of dollars in market value and drawn investigations by the Department of Justice and Securities and Exchange Commission. ADM has replaced its chief financial officer, appointed AT&T Inc.’s top lawyer to its board and implemented new controls as part of efforts to restore credibility. 

ADM has identified and corrected sales between units that either were previously recorded at prices that didn’t approximate the market, or included transactions that were improperly classified. So-called intersegment sales for 2023 had been previously overestimated by $1.28 billion, according to Monday’s statement. Still, operating profits for each of ADM’s three units remained the same as previously reported. 

Shares of ADM were little changed in after-market trading Monday. The stock has lost 27% this year, which compares with a 9.6% decline for main rival Bunge Global SA. 

The company also released third-quarter earnings that were consistent with a preliminary report released earlier this month. Adjusted earnings missed the average analyst estimate.