Archer-Daniels-Midland Company Delays Results Over Accounting Issues

ADM, a global leader in human and animal nutrition and agricultural processing, has announced that it is conducting an investigation into intersegment sales, which involves the transfer of goods and the related financial accounting between business segments. This has led to a delay in closing its financial results. However, the company has emphasized that these sales do not materially affect its overall results and has reiterated its strong financial position.

Juan Luciano, the Chair of the Board and CEO of ADM, stated, "We are a strong company with a strong financial position." He also highlighted the company's expected financial performance, stating, "We expect to report the second best result in our history - above $6.90 in adjusted earnings per share."

Additionally, the Board declared a cash dividend of 50 cents per share, aligning with ADM's dividend growth commitment and maintaining its historic record of more than 92 years. The company also emphasized its strong balance sheet and cash flows, with the leverage expected to remain at healthy levels.

Luciano outlined the company's focus on its commitment to food security, health, well-being, and sustainability globally, as well as its strategic priorities for 2024. He expressed gratitude to the company's colleagues, acknowledging their dedication and commitment to ADM's success.

The full 8-K submission by ADM is available here.

2018 2019 2020 2021 2022 2023
Revenue (MM) $64,341 $64,656 $64,355 $85,249 $101,556 $96,896
Revenue Growth n/a 0.49% -0.47% 32.47% 19.13% -4.59%
Operating Margins 3% 2% 3% 4% 5% 5%
Net Margins 3% 2% 3% 3% 4% 4%
Net Income (MM) $1,810 $1,379 $1,772 $2,709 $4,340 $3,937
Net Interest Expense (MM) $364 $402 $339 $265 $396 $616
Depreciation & Amort. (MM) $941 $993 $976 $996 $1,028 $1,036
Earnings Per Share $3.19 $2.44 $3.15 $4.79 $7.71 $7.18
EPS Growth n/a -23.51% 29.1% 52.06% 60.96% -6.87%
Diluted Shares (MM) 567 565 565 566 563 540
Free Cash Flow (MM) -$5,626 -$6,280 -$3,209 $5,426 $2,159 $488
Capital Expenditures (MM) $842 $828 $823 $1,169 $1,319 $1,533
Current Ratio 1.75 1.55 1.5 1.45 1.46 1.69
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