diff --git a/gcc/fortran/ChangeLog b/gcc/fortran/ChangeLog
index 3a1aa638ec36b4f2713e46b16adeedf3ab5c7fdb..eef8cf8d5a0eb0b035f45a13b0c0899f2ead29e2 100644
--- a/gcc/fortran/ChangeLog
+++ b/gcc/fortran/ChangeLog
@@ -1,3 +1,9 @@
+2009-11-05  Steven G. Kargl  <kargl@gcc.gnu.org>
+
+	PR fortran/41918
+	* fortran/trans-decl.c: Silence intent(out) warning for derived type
+	dummy arguments with default initialization.
+
 2009-11-05  Janus Weil  <janus@gcc.gnu.org>
 
 	PR fortran/41556
diff --git a/gcc/fortran/trans-decl.c b/gcc/fortran/trans-decl.c
index 8ac6b9acc1970d66b1516e1f284ab9085b4425d6..200c3f5654c931d119e0d625bb263117f8ce5721 100644
--- a/gcc/fortran/trans-decl.c
+++ b/gcc/fortran/trans-decl.c
@@ -3776,8 +3776,12 @@ generate_local_decl (gfc_symbol * sym)
       else if (warn_unused_variable
 	       && sym->attr.dummy
 	       && sym->attr.intent == INTENT_OUT)
-	gfc_warning ("Dummy argument '%s' at %L was declared INTENT(OUT) but was not set",
-		     sym->name, &sym->declared_at);
+	{
+	  if (!(sym->ts.type == BT_DERIVED
+		&& sym->ts.u.derived->components->initializer))
+	    gfc_warning ("Dummy argument '%s' at %L was declared INTENT(OUT) "
+		         "but was not set",  sym->name, &sym->declared_at);
+	}
       /* Specific warning for unused dummy arguments. */
       else if (warn_unused_variable && sym->attr.dummy)
 	gfc_warning ("Unused dummy argument '%s' at %L", sym->name,