Green Mountain Coffee Roasters to restate earnings

Green Mountain Coffee Roasters Inc. said it will restate earnings, lowering them by about $5.8 million, for periods dating back to 2007 after it discovered errors associated with its Keurig single-cup coffee business. About $3.5 million is for overstated net income in the first three quarters of fiscal 2010, the company said Friday. The errors included misreporting of the cost of K-Cup coffee pods in inventory, marketing expenses for brewers, and changes in how the company recognized royalties, according to the statement.

The company said none of the errors related to misconduct by its executives or employees. Green Mountain also said no part of the restatement is connected with its relationship to M. Block & Sons Inc., which ships the company's Keurig single-cup coffee brewers. One part of an SEC investigation into how Green Mountain books revenue is focused on the company's dealings with M. Block.

Green Mountain said it continues to cooperate with the SEC. The company expects to file the restated financials by Dec. 9. The company's shares have more than quadrupled in the past three years as it expanded its Keurig business. Keurig generated more than 50 percent of sales in the year that ended in September 2009.