The Sacramento, California-based company said that accounting errors in its GDX Automotive segment led it to restate its financial results for 1999, 2000, and the first nine months of 2001. On Jan. 22, GenCorp rescheduled the release of its fourth-quarter earnings pending a review of its 2001 fiscal results, citing accounting issues at two GDX plants.

Shares of GenCorp rallied 15 percent, or $1.65, to $12.60 on the New York Stock Exchange by midday Wednesday. They have lost about 11 percent since the start of the year, compared with a slight drop in the Standard & Poor's 500 Index.

``Before today, the shares were held back due to uncertainty resulting from the potential restatement of results,'' said Farukh Farooqi, an analyst at Merrill Lynch in New York.

``Now that they have restated the results and done it proactively, that has caused the stock to rally.'' Moreover, the magnitude of the restated results was ``relatively insignificant,'' Farooqi said.

Earlier on Wednesday, GenCorp posted fourth-quarter operating income, excluding unusual items and restructuring charges, of $43 million, up from $29 million a year ago. Net income for the quarter totaled $106 million, or $2.47 per share, compared with year-earlier net income of $7 million, or 14 cents per share.

Revenues for the quarter rose 32 percent, to $367 million from $277 million a year ago. Looking ahead, the company forecast fiscal 2002 EPS in the range of 90 cents to $1.00.

GenCorp said the restated earnings resulted from the correction of errors in accounting for customer-owned tooling, inventory and the recognition of liabilities at one of its GDX Automotive manufacturing plants. GDX, one of its three main businesses, is a leading producer of sealing systems used in autos to keep out noise, wind, and water.

The company said the revisions on net income for the nine months ended Aug. 31, 2001 totaled $3 million, decreasing earnings per share to 52 cents from 59 cents.

For the year ended Nov. 30, 2000, GenCorp said it was restating income from continuing operations to $52 million from $55 million, with EPS now at $1.23 from $1.31. For the year ended Nov. 30, 1999, income from continuing operations was restated to $45 million from $46 million, with EPS at $1.07 from $1.09.

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