GM TO RESTATE RESULTS. FTC initated investigation.
General Motors Corp. saysan accounting error will force it to lop between $300 million and $400 million off the $601 million net profit it reported in 2001. GM also has restated this year’s
second-quarter loss to $1.1 billion from the $286 million
loss it originally reported.
The company says the 2001 error involved booking
early rebates for cost savings from suppliers in the year
they were received rather than in the future periods to
which they applied. GM says rebooking the credits won’t
materially affect results for the future periods.
The company says it also restated its second-quarter
results because it overestimated by 57% the value of the
20% stake in Fuji Heavy Industries it sold in October. GM
initially put the value of that sale at $1.5 billion.
