Dana ( DCN) slashed its quarterly dividend to a penny from 12 cents, citing the "challenging circumstances facing both the company and the automotive industry."

The company also said it expects to reduce previously reported earnings for some 2004 and 2005 periods by $25 million to $45 million, after taxes. Dana's shares plunged last week after the company set plans for an earnings restatement on issues involving customer pricing and transactions with suppliers in the commercial-vehicle business. Also this month, rival Delphi filed for Chapter 11 bankruptcy protection.

The Toledo, Ohio, company said it has received additional necessary waivers through Nov. 30, 2005, under its principal bank facility and accounts receivable securitization agreement. The company is currently in discussion with its lenders regarding possible modifications to its existing facilities, as well as alternative financing arrangements.

Dana also said it plans to make announcements later this week regarding operational and strategic measures to improve its financial performance.

Dana said the reduced dividend is payable on Dec. 15 to shareholders of record on Dec. 1. On Tuesday, its shares fell 22 cents to $6.97.