ADM delays Q3 earnings call amid financial restatement efforts

Archer Daniels Midland Company (ADM) today released its preliminary financial results for the third quarter ending September 30, 2024, highlighting a challenging landscape for the agricultural giant.

The company expects to report net earnings of $18 million, with adjusted net earnings of $530 million. Earnings per share are projected at $0.04, while adjusted earnings per share will be $1.09, both showing declines compared to the previous year. The financial results reflect a significant non-cash charge of $461 million related to its equity investment in Wilmar, impacting GAAP earnings.

CEO Juan Luciano commented on the mixed results, noting that while the Carbohydrate Solutions segment performed strongly, the Ag Services and Oilseeds, as well as Nutrition businesses, fell short of expectations due to softer market conditions. "We are taking the necessary actions to improve performance and drive continued value creation," he stated.

The report revealed a trailing four-quarter average return on invested capital (ROIC) of 6.6%, with adjusted ROIC at 8.8%. Year-to-date cash flows from operating activities are expected to reach $2.468 billion, compared to $1.891 billion in the same period last year.

ADM is currently undergoing a restatement of its previously filed fiscal year 2023 Form 10-K and subsequent Forms 10-Q, which is not expected to materially affect consolidated results. The restatement follows dialogue with the U.S. Securities and Exchange Commission regarding segment information disclosures.

In a summary of performance by segment, the Ag Services and Oilseeds segment saw a 43% decline in operating profit to $480 million, primarily due to lower margins in South America. The Carbohydrate Solutions segment reported a 3% decrease in operating profit, while the Nutrition segment's operating profit was down 19%.

Looking ahead, ADM has adjusted its full-year EPS guidance, now expecting adjusted earnings per share to fall between $4.50 and $5.00 due to ongoing market headwinds and internal challenges.

Due to the ongoing efforts to finalize its financial statements, ADM has postponed its conference call originally scheduled for November 5, 2024. The company plans to reschedule the call to discuss the third quarter results and updates following the filing of the amended financial statements.