Following a company statement announcing that CFO Vikram Luthar had been placed on administrative leave, ADM stock fell 24.2 percent on Monday, January 22nd. The Board replaced Luthar with Ismael Roig as interim CFO.
At issue is the voluntary request for documentation issued by the Securities and Exchange Commission relating to accounting practices relevant to the Nutrition Segment of the company.
ADM is expected to miss profit expectations when the Q4 and FY2023 financials are released. The company previously projected an EPS of $7.00 but reduced the forecast to $6.90 compared to a consensus estimate of $7.27.
The Company will withdraw forward projections for the Nutrition Segment pending an investigation of accounting practices. This segment is responsible for 10 percent of ADM operating profit.