Terex Corp. disclosed that the Securities and Exchange Commission has opened an investigation into the diversified manufacturer’s previously announced restatement of its financials for the years 2000 through 2003.

In announcing the restatement, Terex noted that the accounting errors stemmed mainly from how it booked and reconciled certain intercompany imbalances and its failure to eliminate certain accounts during consolidation. As we reported in January, Terex discovered the errors while conducting its review of its internal controls over financial reporting to comply with Section 404 of Sarbanes-Oxley. The company has already added a new financial reporting system and revised its internal controls.

In the same regulatory filing, Terex also noted that the SEC issued a subpoena for documents concerning transactions in 2000 and 2001 between the company, its subsidiaries, and equipment-rental company United Rentals, one of its customers.

Terex stated that it is cooperating with the SEC’s investigation of its restatement, although no formal order has yet been issued, and cooperating with the document request. The company added that does not believe the United Rentals transactions will impact its restatement.

On August 15, Terex announced that while it was in the final stages of an internal and external review of its financial statements for 2004 and prior periods, the company had underestimated the time needed to complete its audit documentation, tax calculations, and review procedure. The company added that a filing for the year and prior periods was expected “in the very near future.”

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