Dana Corporation Announces Restructuring of Structural Components Unit

Sep 23, 1997

    TOLEDO, Ohio, Sept. 23 /PRNewswire/ -- Dana Corporation (NYSE: DCN)
announced today that it will restructure and rationalize its structural
components manufacturing operations located at Reading, Pa.  As a result of
this action, Dana will reduce its Reading workforce by the end of 1998.
    Currently about 2,700 people are employed at those facilities.  In January
of this year, Dana had announced the lay off of 275 people.  During 1997, an
additional 325 people will be laid off, and a further reduction of
500 employees will be made in the first half of 1998.
    Bruce Butcher, vice president and general manager of Dana's Parish Light
Vehicle Structures Group, said, "Today's business environment is changing
rapidly and these actions are necessary to ensure Parish's competitive
position and to achieve maximum cost efficiency of the Reading facilities."
    Butcher said Dana's decision was announced as early as possible to provide
its people time to pursue other opportunities.  "Dana is committed to
assisting the people affected by these reductions in their efforts to find
other employment," he said.
    Jack Simpson, Dana chief financial officer, said, "As a result of the
restructuring, the company will record a non-recurring after-tax charge of
$22 million (21 cents per share) in the third quarter of 1997."
    Simpson went on to say, "We announced earlier this year that 1997 would be
a transitional year for Dana.  Other third quarter restructuring previously
announced includes the sale of our transmission business.  We also announced
the sale of our clutch business, which resulted in a third-quarter gain of
$70 million (67 cents per share)."
    Dana Corporation is a global leader in the engineering, manufacture, and
distribution of products and systems for the automotive, engine, heavy truck,
off-highway, and industrial markets.  It also operates a leasing services
business, which in 1996 was awarded the Malcolm Baldrige National Quality
Award.  Founded in 1904 and based in Toledo, Ohio, Dana operates facilities in
30 countries and employs more than 48,000 people.  The Internet address for
Dana's home page is www.dana.com.

SOURCE  Dana Corporation

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