Curtiss-Wright Corporation (CW), an aerospace and defense contractor, acknowledges it botched the accounting for a contract in its Naval & Power segment that resulted in the overstatement of revenue and net income primarily in 2020 and 2021. The company blamed contract changes, labor inefficiencies, and hiring delays that were not reflected in the contract’s cost estimates.

In correcting the errors in the three and nine month periods ended period September 30, 2023, Curtiss-Wright:

—Overstated sales and net earnings, respectively, by approximately $5 million and $4 million, or 0.19% and 1.49% in 2021
—Overstated sales and net earnings, respectively, by approximately $8 million and $7 million, or 0.33% and 3.47% in 2020

Curtiss-Wright also acknowledged the error impacted sales and net earnings in 2022 but says it was inconsequential.

The company did not correct the errors in 2022.