ADM Provides Update on Audit Committee Led Investigation
March 12 2024 - 7:01AM
Business Wire
No Impact on Consolidated Financial Results
ADM (NYSE: ADM) today provided an update with respect to the
internal investigation led by the Audit Committee of its Board of
Directors regarding certain accounting practices and procedures
with respect to ADM’s Nutrition reporting segment, including as
related to certain intersegment sales. The investigation was
initially disclosed in January 2024.
“Our strong commitment to compliance and integrity in our
financial reporting is evidenced by the diligence and breadth with
which the Audit Committee has conducted its internal investigation.
The adjustments related to the Company’s reporting segments do not
impact our consolidated statement of earnings. Looking ahead, we
have developed a remediation plan with respect to the identified
material weakness to enhance the reliability of our financial
statements with respect to the pricing and reporting of such
sales,” said Chairman and CEO Juan Luciano. “We remain committed to
strong internal controls. We look to continue our focus on
execution and remain steadfast in delivering on our purpose of
unlocking the power of nature to enrich the quality of life.”
Correction of Certain Segment-Specific Historical Financial
Information
The Company has historically disclosed in the footnotes to its
financial statements that intersegment sales have been recorded at
amounts approximating market. In connection with the investigation,
the Company identified and corrected certain intersegment sales
that occurred between the Company’s Nutrition reporting segment and
the Company’s Ag Services and Oilseeds and Carbohydrate Solutions
reporting segments that were not recorded at amounts approximating
market. Because intersegment sales occur between the Company’s
reporting segments, the adjustments have no impact on the Company’s
consolidated balance sheets and statements of earnings,
comprehensive income (loss), or cash flows. In addition, the
Company determined that the adjustments are not material to the
Company’s consolidated financial statements taken as a whole for
any period.
Material Weakness Remediation Plan
In connection with the internal investigation, the Company
identified a material weakness in its internal control over
financial reporting related to its accounting practices and
procedures for intersegment sales. ADM remains committed to strong
internal controls and has developed a remediation plan to enhance
the reliability of its financial statements with respect to the
pricing and reporting of such sales. Additional details on the
material weakness and related remediation plan can be found in the
Company’s most recent Annual Report on Form 10-K.
Government Investigations
ADM continues to cooperate with the Securities and Exchange
Commission (SEC) and the Department of Justice (DOJ) in this
matter.
The foregoing is a summary of the internal investigation and
related matters. Additional information is available in ADM’s Form
10-K filing on ADM’s Investor Relations website at
www.investors.adm.com under “SEC Filings” on the “Financials”
page.
Fourth Quarter and Full-Year 2023 Results
In a separate release issued today, ADM reported financial
results for the quarter and full year ended December 31, 2023. The
Company will host a webcast today, March 12, at 8 a.m. Central
Time, to discuss financial results and provide a company update. To
listen to the webcast, go to www.adm.com/webcast. A replay of the
webcast will also be available for an extended period of time at
www.adm.com/webcast.
About ADM
ADM unlocks the power of nature to enrich the quality of life.
We’re a premier global human and animal nutrition company,
delivering solutions today with an eye to the future. We’re blazing
new trails in health and well-being as our scientists develop
groundbreaking products to support healthier living. We’re a
cutting-edge innovator leading the way to a new future of
plant-based consumer and industrial solutions to replace
petroleum-based products. We’re an unmatched agricultural supply
chain manager and processor, providing food security by connecting
local needs with global capabilities. And we’re a leader in
sustainability, scaling across entire value chains to help
decarbonize our industry and safeguard our planet. From the seed of
the idea to the outcome of the solution, we give customers an edge
in solving the nutritional and sustainability challenges of today
and tomorrow. Learn more at www.adm.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve substantial risks and uncertainties. All statements,
other than statements of historical fact included in this release,
are forward-looking statements, including, but not limited to
statements about the internal investigation, remediation of the
material weakness, government investigations and any new or
additional actions with respect to these matters. You can identify
forward-looking statements by the fact that they do not relate
strictly to historical or current facts. These statements may
include words such as “anticipate,” “estimate,” “expect,”
“project,” “plan,” “intend,” “believe,” “may,” “outlook,” “will,”
“should,” “can have,” “likely,” and other words and terms of
similar meaning in connection with any discussion of the timing or
nature of future operating or financial performance or other
events. All forward-looking statements are subject to significant
risks, uncertainties and changes in circumstances that could cause
actual results and outcomes to differ materially from the
forward-looking statements. These forward-looking statements are
not guarantees of future performance and involve risks, assumptions
and uncertainties, including, without limitation, the impact of the
internal investigation on the Company; the impact of any new or
different actions in addition to those taken to date; the outcome
and timing of resolution of the ongoing government investigations;
potential delays in remediation of the material weakness described
herein; the impact of this announcement and the investigation on
the Company’s common stock, its relationships with employees,
customers and suppliers; and those that are described in the
Company’s most recent Annual Report on Form 10-K and in other
documents that the Company files or furnishes with the Securities
and Exchange Commission. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual outcomes may vary materially from those indicated
or anticipated by such forward-looking statements. Accordingly, you
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made. Except
to the extent required by law, ADM does not undertake, and
expressly disclaims, any duty or obligation to update publicly any
forward-looking statement after the date of this announcement,
whether as a result of new information, future events, changes in
assumptions or otherwise.
Source: Corporate release Source: ADM
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version on businesswire.com: https://www.businesswire.com/news/home/20240311983275/en/
Media Contact Jackie Anderson media@adm.com
312-634-8484
Investor Contact Megan Britt megan.britt@adm.com
872-257-8378
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