ADM Reports Preliminary Third-Quarter 2024 Results

ADM reported preliminary results for the third quarter of 2024. Profits fell year-over-year. Net income was $18 million, while adjusted earnings were $530 million. The company also announced that it will revise its 2023 financial reports, including the 10-K and 10-Q filings for the first quarters of 2024.

Earnings per share for the quarter were $0,04, while adjusted earnings per share were $1,09, both down from the prior period. Average return on invested capital (ROIC) was 6,6%, while adjusted return was 8,8%. Cash flow from operations reached $2,468 billion year-to-date.

“Our third quarter operating results were mixed in a challenging quarter for the business,” said Chairman and CEO Juan Luciano.

Results by segments

The Carbohydrate Solutions segment reported operating income of $452 million, down 3% year-over-year. On the other hand, the Agricultural Services and Oilseeds (AS&O) and Nutrition segments fell short of expectations. Operating income for the AS&O segment was $480 million, down 43%. Nutrition reported operating income of $105 million, down 19% year-over-year.

According to the company, the challenges faced by the AS&O segment were mainly driven by the lower canola crushing margin in Europe and the increase in logistics costs in South America.

In the nutrition segment, results were also impacted by costs related to the closure of a joint venture and the absence of non-recurring benefits recorded in the previous year.

Accounting adjustment

The company also recorded a significant non-cash accounting adjustment of $461 million related to its investment in Wilmar shares. This write-down was necessary to reflect the decline in the value of the share on the Singapore Exchange, which was considered to be of a long-term nature.

Regarding the review of financial reports, ADM indicated that the decision was made after discussions with the United States Securities and Exchange Commission (SEC). The company identified failures in the control of intersegment sales, which led to the need to review its financial documents, without, however, impacting the consolidated result.

ADM said it expects the challenges faced in the third quarter to continue to impact its results for the full year 2024, adjusting its earnings per share expectation to a range of $4,50 to $5.

The conference call to discuss the results has been postponed while the company finalizes revisions to its financial reports.