Pump Maker to Correct Figures

greenspun.com : LUSENET : Y2K discussion group : One Thread

HOUSTON (AP) -- A pipeline pump maker already in the process of recalculating earnings for seven previous quarters said Monday it was correcting production figures from 1998 through 2000 because it undercounted output in its annual reports.

The reports for Houston-based Hanover Compressor Co., which builds pumps that move petroleum products through pipelines, never have included production figures from an Oklahoma plant it acquired in 1998, chief financial officer John Jackson said.

"(The annual reports) understated as far as how much horsepower we built," Jackson said. He said the figures, which are not required by the Securities and Exchange Commission, will be corrected in the next report.

The error, which made the company look less efficient than it really was, would not have been subject to auditing, Jackson added. The horsepower correction will not affect prior earnings or revenues.

Jackson said the company is "about ready" to file its restatements and other appropriate disclosures, and should have all the necessary SEC documentation filed by mid-April.

The company announced last month it would restate about $63 million of a total of $1.4 billion in revenue from January 2000 through September 2001 to reflect changes in accounting treatments on a handful of transactions.

In trading on the New York Stock Exchange, Hanover Compressor shares fel 3.3 percent, or 56 cents a share, to $16.35.

Yahoo!

-- Anonymous, March 26, 2002


Moderation questions? read the FAQ