Engineering company Fluor says the SEC is investigating its accounting, 10-K to be delayed

Engineering company Fluor says the SEC is investigating its accounting, 10-K to be delayed

Engineering company Fluor Corp.’s shares fell 9% in premarket trade Tuesday, after it said its accounting is being investigated by the Securities and Exchange Commission and that its 10-K filing for 2019 would be delayed as a result. The company said the SEC has requested documents and information related to projects for which the company recorded charges in the second quarter of 2019. In the course of responding to requests for data by the SEC, the company is reviewing prior period reporting and it is possible it may have material errors in financial statements. As a result, it will not file its 10-K for 2019 before the end of February. The company expects its 2019 results to include non-cash charges of $668 million relating to deferred-tax assets and restructuring charges. The company had $12.6 billion in new awards in 2019 and its consolidated backlog at year-end is expected to come to $32.7 billion. For 2020, the company is expecting adj. EPS of $1.40 to $1.60. The company said it has decided to retain the government business that said it would sell as part of a strategic review launched last year. But the company will push ahead with a plan to sell its Ameco equipment business and expects to make “significant progress” with one or more potential buyers by the end of the second quarter. Shares have fallen 46% in the last 12 months, while the S&P 500 has gained 22%.

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