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Dana to restate earnings for 2004 and 2005

Auto-parts maker Dana Corp. will restate its earnings for the last six quarters to fix improper accounting for certain items, the company said Monday. Its stock price fell sharply on the news.
/ Source: The Associated Press

Auto-parts maker Dana Corp. will restate its earnings for the last six quarters to fix improper accounting for certain items, the company said Monday. Its stock price fell sharply on the news.

The Toledo-based company also has withdrawn its profit forecast for the rest of 2005 and will delay its third-quarter earnings announcement.

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.

Dana, which earlier had reported profits of $82 million for 2004, did not say how much earnings will be affected.

Dana also said 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.

In September, the company said high prices for energy and raw materials led it to slash its profit target for the year by more than half.

Following that announcement, the company’s stock fell 23 percent to $9.79 a share on the New York Stock Exchange. The stock has since dipped further, closing Friday at $9.19 a share and falling by $2.43, or 26 percent, to $6.76 in pre-market trading Monday.