ADM raises provision to settle bribery probe to $54 million
CHICAGO (Reuters) - Archer Daniels Midland Co said on Tuesday it was preparing to pay more than twice as much as previously expected to settle a bribery probe with the U.S. government.
ADM, one of the world's largest agricultural trading houses, increased its provision to settle an investigation by the U.S. Department of Justice and the U.S. Securities and Exchange Commission to $54 million from $25 million.
ADM has been negotiating with the Justice Department and SEC about possible violations of foreign bribery laws since 2008, according to the company. It raised its forecast for the fine "based upon recent progress in these discussions," according to a statement in its quarterly earnings report.
ADM previously said that transactions relating to grain and feed exports may have violated the U.S. Foreign Corrupt Practices Act and other U.S. and foreign laws. The company has declined to provide more details.
For the second quarter that ended June 30, ADM reported net earnings of $223 million, or 34 cents a share. That was down from $284 million, or 43 cents a share, for the same quarter a year ago.
(Reporting by Tom Polansek; Editing by Maureen Bavdek)