Northwest Pipe Co. said Thursday it committed a “material error” in accounting for the cost of depreciation of its equipment.
In a filing with the U.S. Securities and Exchange Commission, the Vancouver-based company said correcting the error will result in “a material reduction in reported net income.”
As a result, the company said, several of its past financial reports — including for the fiscal years ended 2009 and 2010, and for the first and second quarters of this year — “should no longer be relied upon.”
The company said it expects to issue its restated earnings reports as part of its annual financial statement for the year ended Dec. 31. The company also expects to release its third-quarter earnings report for the period ended Sept. 30 “once the restatement process is completed.”
Northwest Pipe manufactures large-diameter, high-pressure steel pipelines, primarily for drinking water systems.
The company’s stock, which trades as NWPX, closed up 1.43 percent, at $26.32 per share.