Proactive Investors - Archer-Daniels-Midland Company (NYSE:ADM) shares fell almost 17% shortly after the opening bell in New York after the company revealed that its CFO Vikram Luthar has been placed on ADM (NYSE:ADM, ETR:ADM)inistrative leave, effective immediately, pending an investigation into accounting practices in its Nutrition segment.
The agricultural firm said that the ongoing investigation being conducted by outside counsel on behalf of ADM and the Board’s Audit Committee is probing certain accounting practices and procedures related to the Nutrition unit, including certain intersegment transactions.
The company said its investigation came after it received a voluntary document request from the U.S. Securities and Exchange Commission and that it is cooperating with the agency.
"Pending the outcome of the investigation, the Board determined that it was advisable to place Mr. Luthar on administrative leave,” the Board’s lead director Terry Crews said in a statement.
“The Board will continue to work in close coordination with ADM’s advisors to identify the best path forward and ensure ADM’s processes align with financial governance best practices."
The company also downwardly revised its 2023 profit forecast, now expecting earnings per share (EPS) of $6.90 instead of its prior expectation of EPS over $7 per share, and said its fourth quarter earnings release would be delayed due to the investigation.
Ismael Roig, who has held several leadership positions within the company since he joined in 2004, has been appointed interim CFO.
ADM shares were down 16.8% at US$56.70 in early trade on Monday.
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