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CLEVELAND, OH - SIFCO Industries, Inc. (NYSE American: SIF), a manufacturer specializing in aircraft engines and engine parts with annual revenue of $85 million, announced a change in its independent registered public accounting firm. The company, which according to InvestingPro data has experienced challenging conditions with a 40% stock decline over the past six months, made this announcement amid ongoing operational challenges. According to a recent SEC filing, the company’s Audit Committee decided to dismiss RSM US LLP ("RSM") as its auditor and has appointed Deloitte & Touche LLP ("Deloitte") to take over the role for the fiscal year ending September 30, 2025.
The transition, which took place on Monday, March 18, 2025, comes after SIFCO’s relationship with RSM did not involve any adverse opinions, disclaimers of opinion, or disagreements on accounting principles for the fiscal years 2023 and 2024, as well as the interim period up to the date of the accounting firm’s dismissal. The company did note a previously disclosed material weakness in internal control over financial reporting related to oversight and backup recovery controls but did not cite this as a reason for the change. Recent InvestingPro data reveals the company faces financial challenges, including negative earnings per share of -$1.17 and a modest gross profit margin of 8.77%.
SIFCO has provided RSM with the disclosures made in the SEC filing and has received a letter from RSM, dated today, confirming their agreement with the statements made by the company. Deloitte’s appointment is subject to the completion of standard client acceptance procedures and the execution of an engagement letter.
The company’s decision to switch auditors is a significant corporate governance move, with Deloitte being one of the largest professional services networks globally. This change comes ahead of SIFCO’s fiscal year-end on September 30, 2025, and is expected to bring a fresh perspective to the company’s financial reporting and auditing process. InvestingPro analysis indicates SIFCO operates with a moderate debt-to-equity ratio of 0.88, while maintaining a current ratio of 1.26, suggesting adequate near-term liquidity despite operational challenges.
The information contained in this article is based on a press release statement.
In other recent news, SIFCO Industries held its 2025 Annual Meeting of Shareholders, where key decisions were made regarding the company’s leadership and financial oversight. Shareholders elected four directors to the board, including Robert D. Johnson, Donald C. Molten, Jr., Alayne L. Reitman, and Mark J. Silk. The election results showed strong support for each candidate, with Johnson receiving 3,061,636 votes in favor and Molten securing 3,024,590 votes. Additionally, the shareholders ratified the appointment of RSM US LLP as the independent registered public accounting firm for the fiscal year ending September 30, 2025. This decision was backed by a significant majority, with 4,072,838 votes in favor. The voting process is part of routine corporate governance, allowing shareholders to influence critical decisions. These developments were detailed in SIFCO’s Definitive Proxy Statement, filed with the SEC.
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