Fluor Corp. shares tumbled nearly 13% on Tuesday after the engineering firm, which is facing investigations into its accounting, disclosed another delay in the filing of financial reports.
Fluor said it had determined it would be unable to file its Form 10-Q for the first quarter on time “without unreasonable effort or expense.”
“As previously disclosed, the company is reviewing its prior period reporting and related control environment, as well as completing its Form 10-K for the fiscal year ended December 31, 2019, which was not filed by the prescribed due date,” it said in a regulatory filing, adding that it does not expect to file the 10-Q until after the filing of the 10-K.
In trading Tuesday, Fluor shares fell 12.8% to $9.10, bringing the stock’s losses for the year to date to 52%. It had been trading above $60 a share two years ago.
The company disclosed last week that received a subpoena from the U.S. Department of Justice seeking documents and information related to its recording of charges on a fixed-price federal project in the second quarter of 2019.
Fluor booked $714 million in pretax charges from April to June 2019 for cost overruns, project delays, client disputes and other malfunctions.
The U.S. Securities and Exchange Commission previously asked Fluor to turn over documents related to charges it took in the second quarter of 2019, including its design-build, fixed-price work at an Army ammunition plant in Radford, Va.
“While we currently believe that the total dollar amount of the revenue and subsequent charges taken on [the Radford] project was correct, we are reviewing whether the accounting and financial reporting along with a limited number of additional projects was recognized in the appropriate reporting period,” Fluor executive chairman Alan Boeckmann said in February.
That review is continuing, Fluor said on Tuesday.