Force Protection Reveals Accounting Troubles

OKLAHOMA CITY -- The wheels keep flying off at Force Protection (FRPT Quote).

The maker of military vehicles -- already struggling with heightened competition and disappointing orders -- has now run into problems with its financial reports.

In a press release Friday, the company said its management team has discovered "significant accounting errors" in the quarterly report that it issued just three months ago. The company blamed the problems on "the recording of accounts payable related to inventory purchased from a sub-contractor as a result of a contract termination."

Force Protection plans to restate its third-quarter report and delay its annual report as a result of the issues. The company doubts that it can repair the problem before the current quarter comes to an end, signaling the possibility of ongoing delays.

With Force Protection's stock sinking into the single digits -- and its financial reports now demanding restatements -- investors have grown increasingly worried about the company's future.

Force Protection's stock took another huge hit late Friday, plunging 24% to $3.12 in after-hours trading. The shares -- which were racing toward $30 last summer -- have lost roughly 90% of their value in less than a year.