UPDATED: 6/15/18 8:46 am ET – adds detail
Auto supplier BorgWarner Inc. said on Friday it would restate its financial statements for fiscal years 2015 and 2016 to re-evaluate accounting of its asbestos-related charges.
BorgWarner, which makes turbochargers and all-wheel drive systems for vehicles, has been named in a number of lawsuits in the past, alleging injuries related to asbestos exposure in certain of its products.
The company said it did not record the estimated liability prior to the fourth quarter of 2016 due to a material weakness in its internal controls over financial reporting.
BorgWarner also said it had been in discussions with the U.S. Securities and Exchange Commission since May 2017 over the accounting issue.
BorgWarner said on Friday the restatement does not affect its reported results for 2017.
Last week the company said CEO James Verrier is stepping down at the age of 55 and will serve in a nonexecutive advisory role until he retires in February.
The supplier said COO Frederic Lissalde will replace Verrier, effective Aug. 1.
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