General Motors to restate 2001 earnings

DETROIT (AP) -- General Motors Corp. said Wednesday it plans to restate its earnings from 2001 because an accounting error led the company to overstate its earnings by up to 35 percent. In an unrelated action, Fitch Ratings lowered GM's debt deeper into "junk" status Wednesday and the automaker's shares tumbled to a 13-year low.
In a filing with the Securities and Exchange Commission, GM said its 2001 earnings were overstated by approximately $300 million to $400 million, but the final amount hasn't been determined. GM plans to issue the restated earnings for 2001 and any subsequent years before it issues its 2005 annual report next year.
The world's largest automaker said it has been conducting an internal review of credits received from suppliers, an issue also being investigated by the SEC. The review indicates GM erroneously booked the supplier credits as income in the year they were received rather than to future periods, GM said.
GM filed its statement Wednesday evening after the markets closed.
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