Dana To Restate Earnings

Posted on October 10, 2005

Dana Corp. said it will restate earnings for 2004 and the first half of 2005 and delay posting third-quarter 2005 earnings, citing accounting problems. The Toledo, Ohio-based company, which makes automotive axles, transmissions and other components, said it believes it has found material weakness in its internal controls with respect to financial reporting, and is investigating its accounting. It said the main purpose of its restatements will be to correct issues involving customer pricing and transactions with suppliers in its commercial vehicle business.

Dana has not set a new date for its third-quarter earnings release, which had been slated for Oct. 19. It has also withdrawn earnings forecasts for the fiscal year 2005. The company also said it will likely have to write off its U.S. deferred tax assets, which will cut into net income.