CET Earnings Are Adjusted Downward After Accounting Error Is Discovered

Citing an accounting error that overstated its earnings, CET Environmental Services Inc. said Tuesday that it will restate its net income for last year and for the first quarter this year.

The water treatment and environmental cleanup company said that it is revising its annual earnings to $1.8 million, or 44 cents a share, from its previously reported figure of $2 million, or 49 cents a share. It also is lowering its first-quarter net income to $228,359, or 5 cents a share, from $489,149, or 10 cents a share.

CET said it discovered that an accounting error had caused it to overstate its revenue and related profit for one of its significant commercial contracts.

Even with the downward adjustment, CET said, the company’s revenue rose 103% and earnings per share grew 33% from year-earlier figures. The company said it will file amended reports with securities regulators to reflect the changes.