Shaw Group declares Q3 fiscal 2006 earnings guidance
10 Jul '06
5 min read
The other error resulted from the misapplication of generally accepted accounting principles in accounting for minority interest in a variable interest entity under FIN 46. The effect of the errors was that net income for the second quarter was overstated by $3.5 million or $0.04 per diluted share. Net income for the second quarter will be restated to $21.8 million or $0.27 per diluted share from the previously reported $25.3 million, or $0.31 per diluted share, a reduction in net income of 14 percent. Shaw will file an amended quarterly report on Form 10-Q/A to reflect correction of the errors.
Until such filing, the previously filed financial statements for the second quarter of 2006 should not be relied upon. If necessary, Shaw will request an extension of the filing date for its third quarter Form 10Q in order to make the restatement and file its amended second quarter report.
Mr. Robert L. Belk, Executive Vice President and Chief Financial Officer, said, "Management has determined that the errors leading to the restatement are the result of material weaknesses in our internal controls over financial reporting. We have initiated an assessment of our internal controls to determine the specific corrective actions to be taken. We believe that we will be able to take appropriate remedial actions in the near term to correct the internal control weaknesses."
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