(Reuters) – Shares of Archer-Daniels-Midland fell 7% premarket on Tuesday after the global grain trader cut its adjusted annual profit forecast and said it would restate its previous financial statements after discovering additional accounting irregularities.
The company lowered its 2024 adjusted earnings per share forecast to $4.50 to $5, from $5.25 to $6.25 it had previously estimated.
In March, ADM corrected six years of financial data after an internal investigation found that some sales between business units within the company were not properly recorded.
The accounting irregularities have led to several government investigations and led to the departure of Chief Financial Officer Vikram Luthar.
The revised documents will include a number of newly identified errors related to additional cross-segment sales for the Ag Services and Oilseeds, Carbohydrate Solutions and Nutrition segments, the company said late Monday.
ADM does not expect any material impact and was working to complete the restatements as quickly as possible.
The company will amend its Form 10-K and statements for the first and second quarters of this year for fiscal year 2023.
Meanwhile, ADM reported adjusted net income of $1.09 per share for the third quarter ended September 30, compared with the average analyst estimate of $1.25, according to data compiled by LSEG.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Sriraj Kalluvila)
