ROCKFORD, Ill. (AP)—Aerospace contractor Sundstrand Corp. will face criminal charges resulting from two federal grand jury investigations into alleged overcharges on U.S. Defense Department contracts, the company revealed in a recent financial filing.

The Wall Street Journal, meanwhile, reported Tuesday that Sundstrand already has agreed in principle to plead guilty to filing false statements with the government in connection with one of those investigations and pay $12.5 million for overcharging on military work.

The newspaper also said Justice Department officials hope to gain a plea agreement in the second, larger investigation.

Sundstrand spokesman Claude Bernam said Tuesday inquiries about the grand jury investigations were being referred to company attorneys, who were not available immediately for comment.

But in a report filed recently with the federal Securities and Exchange Commission, Sundstrand acknowledged the “government has advised that it intends to charge the company with criminal violations” in both Rockford and Seattle.

Sundstrand is based in Rockford and operates a subsidiary in Redmond, Wash., near Seattle, that is part of its Advanced Technology Group.

Sundstrand reported a year ago that the government was pursuing $13.5 million plus interest and $102.9 million plus interest in two separate disputes over contract pricing.

Sundstrand, which makes flight data equipment, engine start-up systems and other electronic equipment for commercial and military aircraft, said it is “in the process of entering a settlement in one or possibly both actions.”

The filing said Sundstrand was “engaged in efforts to minimize the extent of any suspension or debarment,” of new government defense contracts.

Such settlements, the company also noted in the filing, “could result in the imposition of materially adverse fines and penalties.”

Because grand jury proceedings are secret, it could not be learned whether the individual Sundstrand officers would face charges.

The Journal, quoting unidentified sources, said senior officials were under investigation by the grand jury in Rockford, which is probing allegations the company overcharged more than $100 million for Defense Department contracts stretching over several years.

In the Seattle case, the newspaper said Sundstrand failed to disclose improper accounting procedures during negotiations with the Defense Department; in the Rockford case, Sundstrand allegedly charged private commercial costs to Air Force and Navy contracts and subcontracts.

The Journal also said the two cases, taken together, could result in the largest total payment ever for alleged military contracting fraud.

Sundstrand’s military sales last year amounted to $574 million and accounted for more than half of all sales in the aerospace segment.

In 1986, Sundstrand put aside $61.5 million, $31.7 million after taxes, to cover settlement and legal expenses relating to the government disputes. As a result, 1986 profits were down 39 percent.

One analyst said Sundstrand has the market presence to weather a temporary halt in government business.

“The question is, is this jeopardizing on a long-term basis,” said Steven Colbert, an analyst with Prudential-Bache Securities. “The answer right now is, ‘I don’t think so.’ Right now they have very strong market share.”