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Feb 18 (Reuters) – Fluor Corp said on Tuesday the U.S. Securities and Exchange Commission (SEC) is investigating the engineering and construction firm’s past accounting and financial reports for possible errors, sending its shares down 8.7% before bell.
The company also said it expects to retain its government unit, which it had previously decided to sell, and stop reporting it as a discontinued operation.
Fluor said it is conducting an internal review and has not determined as to whether there are material errors in its financial statements, although such possibility remains.
The SEC has requested documents and information related to projects for which the company recorded charges in the second quarter of 2019, the company said, adding that it does not expect to file its annual report by the end of February.
The company in September announced plans to sell its construction equipment rental company, AMECO, its government business and monetize its real estate, in a bid to streamline operations.
Fluor remains on track to sell AMECO and had made significant progress with one or more potential buyers by the end of its second quarter, the company said on Tuesday.
The company also expects to report adjusted profit between $1.40 and $1.60 per share from continuing operations in 2020. (Reporting by Shanti S Nair in Bengaluru; Editing by Subhranshu Sahu)
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