Previously EGG-NEWS reported on restatement of segment earnings by Archer-Daniels Midland Company (ADM) dating back to 2014. Sales and contribution by the Nutrition Segment apparently were misstated by applying creative bookkeeping. When discrepancies were disclosed, the CFO Vikram Luthar was suspended and subsequently resigned. With realization of the implications of the deviation from accepted accounting practice, ADM cooperated with the SEC and implemented “significant remedial measures”.
The SEC alleged that adjustments between the Nutrition segment and other business units of ADM were made including retroactive rebates and use of unrealistic intersegment costs to allow the Nutrition segment to meet targets for fiscal 2021 and 2022. Following extensive investigations by the company, forensic auditors and the U.S. Securities and Exchange Commission (SEC), the Company agreed to a settlement of $40 million but did not admit to any wrongdoing. Concurrently the U.S. Department of Justice has closed its investigation. In addition to Luthar his predecessor Ray G. Young previous CFO and Vince Macciocchi president of the Nutrition Segment and chief Sales and Marketing officer were cited by the SEC.
Juan Luciano Chair of the Board and CEO of ADM noted, “We are pleased to put these matters behind the company. These past couple of years have underscored what is core to ADM -incorporating learnings to future strengthen our business.”
At the end of the day Luciano was responsible for the irregularities and was aware if not complicit in the financial manipulation. The incident demonstrates the downside of incentive bonuses and may well denote a corporate culture inconsistent with shareholder and stakeholder interests and conformity to standard accounting practices and business ethics. As the Brits would say ADM “has form”.
Luthar still faces SEC accusations of violating antifraud provisions of securities legislation and involvement in “abetting ADM’s violation relating to internal accounting control.” Luthar denies the SEC allegations and has not settled as have Macciocchi and Young who paid civil and disgorgement penalties.
In the weeks following the September 2024 disclosures of irregularities, ADM stock fell 30 percent from $72 to $51subsequently closing on January 29, 2026 at $67 compared to a November 2025 high of $98. Over the past 52 weeks, ADM has traded in a range of $41 to $70 with a 50-day moving average of $61. Operating margin is razor thin at 2.0 percent with a profit margin of 1.4 percent. On a 12-month trailing basis, the return on assets is 1.8 percent and 5.2 percent on equity.