Dana Corporation Announces Outsourcing of Grey Iron Castings
Dec 22, 2004
Muskegon, Michigan, Foundry to Close TOLEDO, Ohio, Dec. 22 /PRNewswire-FirstCall/ -- Dana Corporation (NYSE: DCN) today announced it has signed a long-term agreement with Federal- Mogul Corporation (OTC Bulletin Board: FDMLQ) to supply Dana with grey iron castings from its western Michigan facility. Grey iron castings are used in the manufacture of piston rings. (Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA ) Consequently, Dana will close its Muskegon, Mich., foundry operations. Production is expected to end in the third quarter of 2005, eliminating approximately 240 jobs. This action will result in an after-tax charge of approximately $12 million, of which $11 million will be recorded in the fourth quarter of 2004. "This decision was necessary due to the excess capacity for grey iron piston ring castings," said Mike Laisure, president of Dana's Automotive Systems Group. "Our foundry is severely underutilized and no longer a viable operation. This action will strengthen our overall competitiveness. "Affected Dana employees will receive outplacement training and separation benefits. We will do everything possible to support our people in their search for new employment," he added. Dana Corporation is a global leader in the design, engineering, and manufacture of value-added products and systems for automotive, commercial, and off-highway vehicles. Delivering on a century of innovation, the company employs approximately 45,000 people worldwide dedicated to advancing the science of mobility. Founded in 1904 and based in Toledo, Ohio, Dana operates technology, manufacturing, and customer-service facilities in 30 countries. Sales from continuing operations totaled $7.9 billion in 2003. 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 our ability to complete the outsourcing as contemplated, 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.