- `Discrepancies' found in inventory for Kenya subsidiary
- Tobacco-leaf merchant to hold Monday conference call on delay
Alliance One International Inc., the world’s biggest tobacco-leaf merchant, said it will miss the deadline to file earnings for the fiscal second quarter ended Sept. 30 because of potential accounting errors.
The company discovered the accounting discrepancies while closing its operations in Kenya, Alliance One said Saturday in a statement. The errors may stretch back to 2008 or earlier and may involve about $40 million in total, it said.
“The discrepancies consist primarily of inventory variances that are not yet accounted for, including differences in deferred crop costs, finished goods inventory, green inventory, agricultural supplies, and packing materials,” according to the statement.
Alliance One, based in Morrisville, North Carolina, said it expects fiscal 2016 sales will be about the same as in fiscal 2015, when the company reported $2.07 billion in revenue for the year ended March 31. It said fiscal 2016 adjusted earnings before interest, taxes, depreciation and amortization should exceed the previous year’s Ebitda, not including adjustments for the Kenyan discrepancies. Adjusted Ebitda totaled $173.2 million in fiscal 2015, according to the company’s earnings statement.
The company said it will hold a conference call on Monday at 8 a.m. New York time to discuss the issue.