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Great Lakes Dredge & Dock tumbles on restatement

NEW YORK (AP) -- Shares of Great Lakes Dredge & Dock Corp. plunged in after-hours trading Thursday after the company said it will restate its second- and third-quarter results because of problems with the way it recorded revenue. It also announced the departure of its president and chief operating officer.

The company's stock dropped $2.87, or 32 percent, to $6.10 after the close.

The Oakbrook, Ill., dredging services company said it discovered it recorded some revenue for its demolition business in a way that did not comply with its own policies. Great Lakes Dredge & Dock said that when it receives an order it normally begins to record the costs associated with it immediately, but it does not recognize the revenue until it is reasonably sure it will be able to collect it.

Recently some orders that were not finalized were recorded as revenue. As a result, the company overstated second-quarter revenue by $3.9 million and third-quarter revenue by $4.3 million. Great Lakes Dredge & Dock said another $5.6 million in fourth-quarter revenue didn't meet its standards.

The company also expects to report $1.3 million in additional expenses for the second quarter and $900,000 for the third quarter related to the cost of preparing vessels for a project in Australia.

CEO Jonathan Berger said in a statement that he is "deeply disappointed" with the problems. The company is delaying the filing of its 2012 annual report but expects to do so by March 29.

"The company will also identify and disclose a material weakness in internal control over financial reporting," it said in a press release.

Great Lakes Dredge & Dock said Bruce Biemeck left the company Thursday. Biemeck was chief financial officer of the company from 1991 to 1999. He returned as a director in 2006, became president and CFO in 2010, and was promoted to chief operating officer in August 2012.

The company said its fourth-quarter net income fell to $302,000, or a penny per share, from $6.8 million, or 12 cents per share, a year ago. Revenue grew 31 percent to $207.1 million.

Analysts expected 19 cents per share and $192.6 million in revenue.