Dana Corporation Revises Earnings Outlook

    TOLEDO, Ohio, March 23 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) today announced that it has revised its first-quarter 2005
earnings outlook to a range of 11 to 13 cents per share, from its previously
announced range of 17 to 23 cents per share.
    (Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    Dana Chairman and CEO Michael J. Burns said the reduction is primarily
attributable to three factors:
     - Higher-than-expected material costs, including the effect of the
       increased cost of steel to Dana's suppliers and other factors;
     - A current component shortage from a principal supplier that has
       resulted in reduced shipments of heavy-duty axles; and
     - Lower-than-expected North American light-vehicle production rates on
       key platforms.

    Mr. Burns added, "We are hopeful that we will see less pressure on
material price increases during the balance of the year, but we can't count on
this.  We are accelerating our cost-reduction efforts to pull forward savings
to offset the potential impact of continued pressure on material costs.
Regarding the component shortage that has reduced heavy-duty axle shipments,
we are working closely with the supplier to resolve the situation and are
confident that we will see a substantial improvement in the second quarter.
However, given the uncertain outlook for the light-vehicle industry in
general, as well as on commodity prices, we feel it is prudent to lower our
2005 full-year guidance to $1.30 to $1.45 per share, from our previous
guidance of $1.40 to $1.62 per share."
    Dana people design and manufacture products for every major vehicle
producer in the world.  Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which collectively
produce more than 60 million vehicles annually.  A leading supplier of axle,
driveshaft, engine, frame, chassis, and transmission technologies, Dana
employs 46,000 people in 28 countries.  Based in Toledo, Ohio, the company
reported sales of $9.1 billion in 2004.  Dana's Internet address
is: http://www.dana.com .

    Forward-Looking Statements
    Certain statements contained in this release constitute "forward-looking"
statements within the meaning of the Private Securities Litigation Reform Act
of 1995.  These statements represent Dana's expectations based on our current
information and assumptions.  Forward-looking statements are inherently
subject to risks and uncertainties.  Dana's actual results could differ
materially from those that are anticipated or projected due to a number of
factors.  These factors include: national and international economic
conditions; adverse effects from terrorism or hostilities; the strength of
other currencies relative to the U.S. dollar; increases in commodity costs,
including steel, that cannot be recouped in product pricing; our ability and
that of our customers to achieve projected sales and production levels; the
continued availability of necessary goods and services from our suppliers;
competitive pressures on our sales and pricing; the continued success of our
cost reduction and cash management programs, long-term transformation and U.S.
tax loss carryforward utilization strategies; and other factors set out in our
public filings with the Securities and Exchange Commission.  Dana does not
undertake to update any forward-looking statements in this release.

SOURCE Dana Corporation

Web Site: http://www.dana.com

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