Dana to Restate 2004/2005 Earnings

October 19, 2005 — Dana Corp., New York, will restate earnings for 2004 and the first half of 2005, and delay posting third-quarter 2005 earnings, citing incorrect accounting in areas including transactions with suppliers in its commercial vehicle business, according to a recent report by the Associated Press. The news came just two days after rival Delphi Corp. filed for bankruptcy protection. Dana shares fell 13 percent, to $8, in pre-market trading on Inet.

 

According to the brief, the Toledo, Ohio-based company said it believes it has found material weaknesses in its internal controls with respect to financial reporting, and is still investigating its accounting. It has not set a new date for its third-quarter earnings release, which had been slated for Oct. 19. The company also said it will likely have to write off its U.S. deferred tax assets, which will cut into net income. Those tax assets totaled $740 million at the end of June. Dana said it will be unable to maintain those assets or record similar benefits in the future.