Fluor (FLR) - Get Report shares were tumbling after the engineering and construction company said the Securities and Exchange Commission is looking into the company’s past accounting and financial reporting.
The Irving, Texas, company also said in a statement that the SEC has asked for documents and information related to projects for which the Company recorded charges in the second quarter of 2019.
Fluor said it will not file its 10-K for the period ended Dec. 31, 2019, until the end of February.
"In the course of responding to the SEC’s data requests and conducting our own internal review," Fluor said, "the company is reviewing its prior-period reporting and related control environment.
"The company has not made a determination at this time as to whether there are prior period material errors in its financial statements, although such remains possible."
Fluor said it would not be selling its government business as it had planned after the company "gained confidence in its solid liquidity position."
As a result, Fluor "has decided to retain the government segment, which will cease to be reported as a discontinued operation in the first quarter of 2020."
Fluor said it still plans to sell its Ameco equipment business, saying it intended to "have made significant progress with one or more potential buyers by the end of the second quarter."
The company said it expected its 2019 results to include non-cash charges of $668 million relating to deferred-tax assets and restructuring charges.
For 2020 Fluor expects adjusted earnings of $1.40 to $1.60 a share, compared with Bloomberg estimates of $1.52.
The company said it had $12.6 billion in new awards in 2019 and its consolidated backlog at year-end is expected to come to $32.7 billion.