Dana Posts Record Third-Quarter Sales, Profits; Dana Commercial Credit Earns Malcolm Baldrige Award

Oct 21, 1996


    TOLEDO, Ohio, Oct. 21 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today
posted record third-quarter sales and profits.
    Third quarter sales of $1.82 billion were up 5 percent compared to the
third quarter of 1995, while net income increased 7 percent to $65.2 million.
International sales increased 10 percent, while U.S. sales were up 3 percent.
Earnings per share were 64 cents, up from 60 cents during the third quarter of
1995.
    Dana's nine-month consolidated sales were $5.81 billion, up 3 percent
compared to the same period last year.  Income for the first three quarters of
1996 was $235.4 million, an increase of 13 percent over the initial nine
months of 1995.
    The company's solid financial results were underscored by the recent news
that Dana's leasing operation, Dana Commercial Credit Corporation, earned the
1996 Malcolm Baldrige National Quality Award.  Dana Commercial Credit became
just the sixth company honored in the award's service category, joining
companies such as AT&T, Federal Express, GTE and Ritz-Carlton.
    "Dana's continued strong financial performance is reflective of our
quality products and processes," said Chairman Southwood J. Morcott.  "It is
also the result of Dana's worldwide efforts to locate where our customers are
pursuing growth opportunities and expand our core product sales."
    "Our goal is to increase international sales to 50 percent of our total by
the year 2000," he added.  "When you consider that 21 of our 24 acquisitions
and joint ventures over the past three-and-a-half years involve companies
based outside the U.S., you can see just how committed Dana is to global
growth and supporting our customers around the world."
    Strong worldwide sales of light trucks and sport utility vehicles continue
to be a key factor in offsetting weak U.S. demand for heavy trucks.  Dana's
year-to-date sales of light truck components (for sport utility vehicles,
pickup trucks and vans) to original equipment manufacturers were up solidly
over the company's record performance in 1995.
    Additionally, year-to-date sales to manufacturers of mobile off-highway
vehicles and passenger cars were up 10 percent each, while Dana's distribution
business grew by 10 percent internationally and 5 percent overall.
    In August, Dana announced that it had signed a letter of intent to acquire
SPX Corporation's worldwide Sealed Power brand piston ring and cylinder
business for $235 million.  Contingent on due diligence review and approval by
regulatory agencies and the companies' boards, the acquisition would encompass
the SPX Sealed Power Division, Sealed Power Europe, and ownership in various
joint ventures in Mexico and the United States.
    Dana also continued to earn significant business worldwide.  In Brazil,
Dana has formed a joint venture with brake manufacturer Freios Varga S.A. to
supply front suspension modules and rear axles for the Volkswagen Golf.
    Dana's Wix Filtration Products Group and German filter maker Helsa-Werke
have formed a joint venture to produce filtration products for several North
American markets.  And, in Canada, Dana has been named the sole supplier of
automotive filters to UAP, Inc., Canada's leading distributor to the
automotive aftermarket.
    Today, Dana's Board of Directors approved a quarterly dividend of
$0.25 per share payable December 13, 1996, to shareholders of record as of
November 29, 1996.  This will mark Dana's 236th consecutive dividend (dating
back to 1936) without a missed or reduced payment.
    Dana Corporation is a global leader in the engineering, manufacturing and
distribution of products and systems for the vehicular, industrial and mobile
off-highway markets.  Its core products are axles, driveshafts, structural
components (frames), sealing products and filtration products.  Founded in
1904 and based in Toledo, Ohio, Dana operates facilities in 29 countries with
more than 45,000 people.  Its 1995 sales were $7.6 billion.  Named in 1995 by
Financial World magazine as one of the "Best 100 Growth Companies," Dana is
noted for its style of management and its commitment to innovation.  It has
38 product research and development centers worldwide.  Dana also owns Dana
Credit Corporation, a leading provider of lease financing services.  The
internet address for Dana's home page is http://www.dana.com.


     (in millions, except
      per share amounts)
                                      Three Months Ended September 30
                                            1995              1996

    Sales                              $   1,727.1       $   1,815.8
    Net Income                                60.9              65.2
    Net Income Per Common Share              $0.60             $0.64
    Average Shares Outstanding               101.3             101.7

                                       Nine Months Ended September 30
                                            1995              1996

    Sales                              $   5,620.3       $   5,809.0
    Net Income                               209.2             235.4
    Net Income Per Common Share              $2.07             $2.32
    Average Shares Outstanding               101.3             101.7


    Dana Corporation
    Statement of Income
    September 30, 1996
     (in millions, except per share amounts)

                                      Three Months Ended September 30
                                            1995              1996

    Net Sales                          $   1,727.1       $   1,815.8
    Revenue from Lease Financing
        and Other Income                      42.0              48.7
          Total                            1,769.1           1,864.5

    Costs and Expenses
      Cost of Sales                        1,458.5           1,536.0
      Selling, General and
       Administrative Expenses               169.9             179.5
      Interest Expense                        38.4              40.9
        Total                              1,666.8           1,756.4

    Income Before Income Taxes               102.3             108.1
    Estimated Taxes on Income                (38.0)            (36.4)
    Minority Interest                         (7.2)            (10.1)
    Equity in Earnings
      of Affiliates                            3.8               3.6

    Net Income                         $      60.9       $      65.2

    Net Income Per Common Share              $0.60             $0.64

    Average Number of Shares
      Outstanding                            101.3             101.7


    Dana Corporation
    Statement of Income
    September 30, 1996
     (in millions, except per share amounts)

                                      Nine Months Ended September 30
                                            1995              1996

    Net Sales                          $   5,620.3       $   5,809.0
    Revenue from Lease Financing
        and Other Income                     136.6             161.2
          Total                            5,756.9           5,970.2

    Costs and Expenses
      Cost of Sales                        4,746.9           4,913.3
      Selling, General and
       Administrative Expenses               505.9             551.5
      Interest Expense                       107.5             116.4
        Total                              5,360.3           5,581.2

    Income Before Income Taxes               396.6             389.0
    Estimated Taxes on Income               (154.5)           (139.8)
    Minority Interest                        (27.6)            (25.1)
    Equity in Earnings (Losses)
      of Affiliates                           (5.3)             11.3

    Net Income                         $     209.2       $     235.4

    Net Income Per Common Share              $2.07             $2.32

    Average Number of Shares
      Outstanding                            101.3             101.7


    Dana Corporation
    Condensed Balance Sheet
    September 30, 1996
     (in millions)

                                         December 31      September 30
    Assets                                   1995             1996

    Cash and Marketable Securities     $      66.6       $     116.5
    Accounts Receivable                    1,081.6           1,160.2
    Inventories                              874.8             910.0
    Lease Financing                        1,004.9           1,082.7
    Investments and Other Assets           1,016.7             971.7
    Property, Plant & Equipment, Net       1,649.5           1,750.0
      Total Assets                     $   5,694.1       $   5,991.1

    Liabilities and Shareholders' Equity
    Accounts Payable and Other
      Liabilities                      $   1,173.0       $   1,199.7
    Short-Term Debt                          791.4             841.0
    Long-Term Debt                         1,315.1           1,364.9
    Deferred Employee Benefits             1,096.2           1,096.2
    Minority Interest                        153.8             171.1
    Shareholders' Equity                   1,164.6           1,318.2
      Total Liabilities and
       Shareholders' Equity            $   5,694.1       $   5,991.1


    Dana Corporation
     (Including Dana Credit Corporation on an Equity Basis)
    Statement of Income
    September 30, 1996
     (in millions)
                                      Three Months Ended September 30
                                            1995              1996

    Net Sales                          $   1,726.5       $   1,815.8
    Other Income                               1.7               2.2
      Total                                1,728.2           1,818.0

    Costs and Expenses
      Cost of Sales                        1,462.9           1,540.2
      Selling, General and
       Administrative Expenses               149.5             156.1
      Interest Expense                        19.9              21.5
        Total                              1,632.3           1,717.8

    Income Before Income Taxes                95.9             100.2
    Estimated Taxes on Income                (36.6)            (34.7)
    Minority Interest                         (7.2)            (10.1)
    Equity in Earnings
      of Affiliates                            8.8               9.8

    Net Income                         $      60.9       $      65.2


    Dana Corporation
     (Including Dana Credit Corporation on an Equity Basis)
    Statement of Income
    September 30, 1996
     (in millions)
                                       Nine Months Ended September 30
                                            1995              1996

    Net Sales                          $   5,619.1       $   5,809.0
    Other Income                              15.8              21.9
      Total                                5,634.9           5,830.9

    Costs and Expenses
      Cost of Sales                        4,759.5           4,928.6
      Selling, General and
       Administrative Expenses               442.2             483.9
      Interest Expense                        54.4              61.2
        Total                              5,256.1           5,473.7

    Income Before Income Taxes               378.8             357.2
    Estimated Taxes on Income               (150.5)           (128.7)
    Minority Interest                        (27.6)            (25.1)
    Equity in Earnings
      of Affiliates                            8.5              32.0

    Net Income                         $     209.2       $     235.4

    Dana Corporation
     (Including Dana Credit Corporation on an Equity Basis)
    Condensed Balance Sheet
    September 30, 1996
     (in millions)

                                        December 31     September 30
    Assets                                  1995              1996
    Current Assets
      Cash and Marketable Securities   $      54.9       $     114.1
      Accounts Receivable                  1,098.4           1,184.0
      Inventories                            874.8             910.0
      Other Current Assets                   132.5             122.1
        Total Current Assets               2,160.6           2,330.2

    Property, Plant & Equipment, Net       1,486.4           1,568.5
    Investments and Other Assets             941.0             945.4

      Total Assets                     $   4,588.0       $   4,844.1

    Liabilities and Shareholders' Equity
    Accounts Payable and Other
      Current Liabilities              $   1,093.0       $   1,082.1
    Notes Payable                            515.4             520.7
    Long-Term Debt                           533.7             614.1
    Deferred Employee Benefits
      and Other Noncurrent Liabilities     1,127.5           1,137.9
    Minority Interest                        153.8             171.1
    Shareholders' Equity                   1,164.6           1,318.2

      Total Liabilities and
       Shareholders' Equity            $   4,588.0       $   4,844.1


    Dana Credit Corporation
     (A Wholly-Owned Subsidiary of Dana Corporation)
    Statement of Income
    September 30, 1996
     (in millions)

                                      Three Months Ended September 30
                                            1995              1996

    Lease Financing                    $      39.2       $      42.7
    Other Income                               8.8              13.4
      Total                                   48.0              56.1

    Interest Expense                          16.4              19.5
    General and Administrative
      Expenses                                27.1              28.6
        Total                                 43.5              48.1

    Income Before Income Taxes                 4.5               8.0
    Estimated Taxes on Income                 (0.7)             (1.7)
    Equity in Earnings of Affiliates           1.2               0.4

    Net Income                         $       5.0       $       6.7


    Dana Credit Corporation
     (A Wholly-Owned Subsidiary of Dana Corporation)
    Statement of Income
    September 30, 1996
     (in millions)

                                       Nine Months Ended September 30
                                             1995              1996

    Lease Financing                    $     112.2       $     126.6
    Other Income                              29.4              47.7
      Total                                  141.6             174.3

    Interest Expense                          46.1              55.4
    General and Administrative
      Expenses                                79.5              87.1
        Total                                125.6             142.5

    Income Before Income Taxes                16.0              31.8
    Estimated Taxes on Income                 (3.4)            (11.1)
    Equity in Earnings of Affiliates           3.7               1.9

    Net Income                         $      16.3       $      22.6


    Dana Credit Corporation
     (A Wholly-Owned Subsidiary of Dana Corporation)
    Balance Sheet
    September 30, 1996
     (in millions)

                                        December 31     September 30
    Assets                                  1995              1996
    Cash                               $      11.5       $       2.5
    Lease Financing                        1,153.5           1,239.5
    Loans Receivable and Other Assets        221.7             294.0

      Total Assets                     $   1,386.7       $   1,536.0

    Liabilities and Shareholder's Equity
    Short-Term Debt                    $     371.7       $     461.2
    Long-Term Debt                           600.7             609.9
    Other Liabilities and
      Accrued Expenses                        74.3              84.9
    Deferred Income Taxes                    235.4             262.7
    Shareholder's Equity                     104.6             117.3

      Total Liabilities and
       Shareholder's Equity            $   1,386.7       $   1,536.0

SOURCE  Dana Corporation

CONTACT: Gary Corrigan, Director-Corporate Communications, of Dana
Corporation, 419-535-4813

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