Dana Corp. CEO Michael Burns tried to shore up his flagging industrial giant last week.
In one week, he revealed that Dana would cut its 12-cent quarterly dividend to a penny, restate six quarters of financial statements because of improper accounting, and write down certain tax assets.
Earlier this month he withdrew the company's 2005 earnings forecast.
Dana, of Toledo, Ohio, also said it would shed noncore operations and close two plants -- that employ 9,800 people worldwide. The plants are in Buena Vista and Bristol, Va.
The move puts renewed focus on Dana's light- and heavy-vehicle products. The plan pushed Dana shares up during the week, but the rally evaporated.
Burns said his company and the automotive industry face unprecedented times.
"While a number of the actions we are taking are painful, they are vital to refocusing our company," he said in a prepared statement on Thursday. Oct 20.
Company officials declined requests for interviews from Automotive News last week.