02:03 PM EDT, 03/12/2024 (MT Newswires) -- Archer-Daniels-Midland ( ADM ) has developed a remediation plan after it had to rectify certain segment results following an internal accounting probe, while the agricultural company logged lower fourth-quarter financial results that missed Wall Street's estimates.

In January, the company's board placed Chief Financial Officer Vikram Luthar on administrative leave, pending an investigation into accounting procedures relating to its nutrition reporting segment, including intersegment transactions.

Archer-Daniels-Midland ( ADM ) said Tuesday it has identified and corrected certain intersegment sales that took place between the nutrition reporting segment and the Ag services and oilseeds and carbohydrate solutions segments that were "not recorded at amounts approximating market." The company has developed a remediation plan to increase the reliability of its financial statements with respect to the pricing and reporting of such sales, Chief Executive Juan Luciano said. The adjustments do not impact the company's consolidated statement of earnings, he added.

Separately, the company said in a filing with the US Securities and Exchange Commission that following its announcement about the internal investigation, it received voluntary document requests from the US Department of Justice focused mainly on the probe. The DOJ directed grand jury subpoenas to certain existing and former employees of Archer-Daniels-Midland ( ADM ). The investigation covers the period between January 2018 and September 2023, according to the filing. The company said it is cooperating with the SEC and the Justice Department with respect to the investigation.

Archer-Daniels-Midland ( ADM ) shares were up 4.3% in Tuesday afternoon trade.

The company's fourth-quarter adjusted earnings fell to $1.36 a share from $1.93 a year earlier, missing the Street's $1.43 view. Archer-Daniels-Midland ( ADM ) attributed the drop to lower pricing and execution margins, as well as unplanned downtime at the Decatur complex, among other things. Revenue for the quarter through Dec. 31 fell year over year to $22.98 billion from $25.94 billion, lagging the Street's $23.89 billion estimate.

For 2024, the company expects adjusted EPS of $5.25 to $6.25, down 18% at the midpoint from last year, according to a statement. The company said the outlook factors in "moderating" margin conditions and higher costs offsetting improved volumes. The Street is looking for normalized EPS of $5.94.

"We know that 2024 will be a more challenging year that we faced in 2022 and 2023," Luciano said on an earnings conference call, according to a Capital IQ transcript. "We see tailwinds that supported a portion of our performance over the past few years."

The company's board approved the buyback of an additional $2 billion of shares under its existing repurchase program, which runs through 2024.

Price: 57.30, Change: +2.39, Percent Change: +4.35