June 19, 2024

ADM puts finance chief on leave pending accounting probe

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US agricultural giant Archer Daniels Midland has placed its chief financial officer on leave and delayed its earnings release as it investigates accounting practices in its nutrition business.

In a statement on Sunday night, the company said its board had decided to put Vikram Luthar on administrative leave with immediate effect and appointed Ismael Roig as interim CFO.

Chicago-based ADM said it had launched an investigation into accounting practices and procedures in the nutrition business, following a voluntary document request by the US Securities and Exchange Commission.

The crop merchant said its fourth-quarter earnings release would be delayed, adding that it expected to deliver above $6.90 in adjusted earnings per share for the fiscal year ended December 2023. ADM in October forecast full-year profits above $7 per share.

“The board takes these matters very seriously,” said lead director Terry Crews. “Pending the outcome of the investigation, the board determined that it was advisable to place Mr Luthar on administrative leave.

“The board will continue to work in close co-ordination with ADM’s advisers to . . . ensure ADM’s processes align with financial governance best practices,” he added.

Shares in ADM fell almost 10 per cent in pre-market trading in New York on Monday.

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