Commodity trader ADM probes accounts and puts finance chief on leave

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US agricultural commodities trader Archer Daniels Midland has placed its chief financial officer on leave and delayed its quarterly earnings release as the group investigates accounting practices in its nutrition business.

Vikram Luthar, who has been finance chief since 2022, was put on administrative leave with immediate effect and has been replaced on an interim basis by Ismael Roig, Chicago-based ADM said late on Sunday.

ADM, one of a handful of companies that dominate the international trading and processing of grain, said it had launched a probe into accounting practices and procedures in the nutrition business after a request for documents from the US Securities and Exchange Commission.

“The board takes these matters very seriously,” said lead director Terry Crews. “Pending the outcome of the investigation, the board determined that it was advisable to place Mr Luthar on administrative leave.”

He added: “The board will continue to work in close co-ordination with ADM’s advisers to . . . ensure ADM’s processes align with financial governance best practices.”

Shares in ADM fell more than 10 per cent in pre-market trading in New York on Monday.

As a result of its probe, ADM said the release of its fourth-quarter earnings would be delayed. The company gave no further details but added that it was also co-operating with the SEC. Luthar replaced ADM’s longstanding finance chief Ray Young in early 2022.

“We believe on top of earnings under pressure now there could be confidence issues as the street will likely look at the numbers with caution,” analysts at UBS noted. Investors are likely to be wary “until they have more clarity as to what exactly went wrong with nutrition segment accounting.”

Over the past decade, ADM has poured billions of dollars into its nutrition business. In 2014, it acquired European…