Weatherford (WFT) Plunges on Accounting Issues

After Weatherford International (NYSE:WFT) disclosed it would have to delay its annual report because of the need to restate its financial statements because of accounting issues, shares of the company plummeted by over 11 percent.

The company said on a conference call, “We have assumed that cessation of business activities in parts of the Middle East and North Africa regions due to political turmoil will be short-lived, that the negative impact on our business will not be material, and that the region will not experience further disruptive political revolution in the near term.”

In a filing with the SEC, Weatherford added it would have to delay its annual report, saying fourth quarter earnings would have to be adjusted, citing past and fourth quarter earnings “totalling approximately $500 million for the periods from 2007 to 2010."

Accounting problems centered around “an error in determining the tax consequences of intercompany amounts over multiple years.”

Weatherford was trading at $20.92, falling $2.60, or 11.05 percent, as of 12:27 PM EST.