Michael Baker Corp., a provider of engineering and maintenance services, said Friday it will restate its financial results for the first three quarters of 2007 because of non-cash errors at its energy business segment.
Michael Baker said the errors mainly relate to the improper recognition of revenue on domestic managed services projects during the quarters.
As a result, the company's consolidated financial statements for the quarters should not be relied upon until the restatements are filed, the company said.
For the first nine months of 2007, Michael Baker previously reported a profit of $18 million, or $2.03 per share. The energy segment's previously reported income from operations before corporate overhead allocations totaled $12.5 million.
The company said the accumulated pretax affect of the errors may entirely _ or slightly more than _ offset the energy segment's reported income from operations before corporate overhead for the first three quarters of 2007.
Michael Baker said it is still trying to determine if the errors will effect its 2006 financial statements. The company said its audit committee will also initiate an independent investigation.
Michael Baker shares fell 40 cents to close at $36.10.
Terms & Conditions
RSS Headlines
Fool UK