Titanium Metals Corp., a maker of titanium parts for airplanes, said it plans to add staff and modernize its computer systems after finding ``material weaknesses'' in its financial accounting.
The company ``did not maintain effective internal control over financial reporting'' as of Dec. 31, 2005, Denver-based Titanium Metals said today in a filing to the U.S. Securities and Exchange Commission. Titanium Metals said it doesn't expect to make changes to its 2005 earnings.
Titanium Metals said in the filing it didn't have enough people with appropriate accounting knowledge and needed more procedures on revenue and inventory accounting.
Bruce Inglis, the company's controller, declined to comment further.
Last week, the company said its fourth-quarter profit more than doubled to $41.4 million from a restated $19.2 million on higher metals prices and sales, which rose 61 percent to $220.8 million.
Shares of Titanium Metals rose $1.19, or 2.7 percent, to $44.50 in New York Stock Exchange composite trading. The shares have risen almost fivefold in the past year. The statement came after the close of regular trading.
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