Auto-parts maker Dana Corp. said Monday it will restate its earnings for the last six quarters to fix improper accounting and will withdraw its profit forecast for 2005, sending its stock tumbling for the second time within a month.
The company's stock has lost half of its value since mid-September. Shares dropped 34 percent Monday.
Dana said the restatements for all of 2004 and the first two quarters of 2005 stem primarily from improper accounting for issues involving customer pricing and its commercial vehicle business.
This comes just weeks after Dana said it was cutting its profit outlook for this year in half.
The Toledo-based company, which earlier had reported profit of $82 million for 2004, did not say how much earnings will be affected. It also will delay its third-quarter earnings announcement, which was scheduled for this week. The company did not immediately return a message Monday.
The announcement is another blow to the struggling auto parts supplier industry.
Delphi Corp., the largest U.S. auto supplier, filed for bankruptcy Saturday and is expected to cut jobs and close some of its 31 U.S. plants. It has about 13,000 workers in Ohio at plants in Dayton, Warren, Sandusky and Columbus.
The FBI and the Securities and Exchange Commission have been investigating Delphi's accounting practices for several months. Delphi already had restated its earnings for the last five years after conducting an internal investigation.
Dana said Monday that it believes it has weaknesses in its internal control over financial reporting. The company has not determined whether the additional revisions to its earnings will be necessary because of the probable weaknesses.
The company's stock fell $3.15, or 34 percent, to close at $6.04 Monday on the New York Stock Exchange, below the previous 52-week low of $8.79.
Its stock fell last month by 23 percent after announcing it was cutting its profit forecast for the year. The company's shares had been as high as $18.59 during the past 52 weeks.
Dana, which makes brakes, axles and other parts, has said that soaring energy and steel costs were to blame for cutting in half its profit outlook for this year.
The company said last month it will be making significant changes to improve its financial performance.