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ENGlobal Sees Third-Quarter Shortfall

The company will record a $3.5 million charge in the quarter.


(ENG) - Get ENGlobal Corporation Report

said late Monday that it won't meet its third-quarter earnings expectations due to an after-tax charge of roughly $3.5 million.

Shares were of the small-cap oil engineering firm were slipping $1.59, or 21.3%, to $5.86 in late-morning trading Tuesday.

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The charge results primarily from productivity delays and cost overruns on two fixed-price projects in the company's engineering segment.

"While the majority of the company's business units are experiencing positive performance, ENGlobal will report a loss for the quarter after consolidating this charge with its other operations," the company said.

The oil engineering firm is scheduled to announce its third-quarter earnings results on or before Nov. 14.