Investing.com -- Shares of Archer-Daniels Midland Company (NYSE: ADM) dropped almost 6% premarket Tuesday after the agribusiness giant released its preliminary third-quarter earnings report, revealing challenges across several segments.

ADM reported net earnings of $18 million for the quarter, with adjusted net earnings at $530 million, reflecting a year-over-year decline. The company also recorded a significant $461 million non-cash charge, driven by a valuation reduction in its Wilmar equity investment.

CEO Juan Luciano described the quarter as “challenging,” with results mixed across business lines. While the Carbohydrate Solutions division performed well, both the Ag Services and Oilseeds (AS&O) and Nutrition segments lagged expectations.

Luciano attributed the decline to “softer than expected market conditions” and a slower-than-anticipated improvement pace in certain business areas. ADM’s earnings per share (EPS) is anticipated at $0.04, with adjusted EPS at $1.09, both down compared to last year.

In light of current challenges, ADM adjusted its full-year EPS guidance, now forecasting adjusted earnings in the range of $4.50 to $5.00 per share.

Further complicating matters, ADM announced it will restate its 2023 fiscal year Form 10-K and the first two quarters of 2024 Forms 10-Q, while it has also suspended its Q3 conference call.

The restated restatements, prompted by segment reporting errors, are expected to have a minimal impact on consolidated financials but highlight ongoing issues with financial controls.

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