Circor International shares fall as Co investigates unit’s accounting irregularities
By Maria Armental
Shares of Circor International Inc. fell 2.4% to $23 in after-hours trading on Monday after the company warned it may restate financial results dating back to 2018 due to related accounting irregularities. to its pipeline engineering unit.
The company, which also revealed it was looking at strategic alternatives, said that before the irregularities were discovered, the unit accounted for about 3% of Circor’s total 2020 revenue and about 2% of revenue. total business of 2019.
The irregularities appear to largely explain balance sheet and income statement entries ranging from $35 million to $45 million in pretax revenue on a cumulative basis over a period of at least five years, Circor said, adding that these figures could be revised.
The operations of this unit were largely located in Catterick, England.
An outside law firm and an independent accounting firm are reviewing the documents with the board’s audit committee, Circor said.
Although a review of the company’s internal control over financial reporting and disclosure controls and procedures has not been completed, Circor said it expects to report at least one material weakness during this period.
Circor has not yet scheduled its fourth quarter and full year financial report. He said Monday that he had requested a 15-day extension to file his Form 10-K for 2021, but could miss the extended deadline.
Write to Maria Armental at [email protected]