Halliburton Settles SEC Probe With Fine

Associated Press
08.03.2004

Halliburton Co. said Tuesday it will not have to restate financial reports from prior periods but agreed to pay a $7.5 million fine to settle a Securities and Exchange Commission investigation into the company's accounting practices.

Halliburton said the SEC was examining the company's 1998 change to its accounting methods for recognizing revenue from unapproved claims on long-term construction projects, which Halliburton did not disclose until filing its 1999 annual report.

The SEC did not uncover any errors or evidence of fraudulent accounting, Halliburton said. The company neither admitted nor denied any of the agency's findings in paying the penalty, which Halliburton said "reflects the SEC's view that there were lapses in the company's cooperation with SEC staff, which had the effect of delaying the production of information and documentation necessary to an expeditious completion of its investigation."

The company revised its second-quarter earnings to reflect the $7.5 million charge, posting a loss from continuing operations of $58 million, or 13 cents per share, compared with a previously reported loss of $54 million or 12 cents per share. Halliburton said its loss for the quarter is now $667 million, or $1.52 per share, compared with a previous loss of $663 million, or $1.51 per share.

Shares of Halliburton rose less than 1 percent, or 24 cents, to $31.54 during afternoon trading on the New York Stock Exchange.

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