Dana Corporation Announces Consolidation of Off-Highway Axle and Transmission Production
Dec 20, 2004
TOLEDO, Ohio, Dec. 20 /PRNewswire-FirstCall/ -- Dana Corporation (NYSE: DCN) today announced that it will consolidate the manufacturing of its off-highway transmissions and axles. This consolidation will result in the closure of Dana's Statesville, N.C., facility, a work force reduction in Brugge, Belgium, and the realignment of machining and assembly operations in North America and Europe. (Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA ) The consolidation and related transfer of production assets are expected to be completed by December 2005. Production in Statesville is scheduled to end in September. These actions will eliminate approximately 300 jobs and result in an after-tax charge of approximately $25 million, of which $22 million will be recorded in the fourth quarter of 2004. Outplacement training and separation benefits will be provided to the affected employees. Additionally, these people will be kept informed of openings at other Dana facilities. "The decision to consolidate manufacturing was necessary to strengthen the competitiveness of this business long term," said Nick Cole, president of Dana's Heavy Vehicle Technologies and Systems Group. "We're committed to sustaining and growing our leadership position among off-highway vehicle manufacturers. "Dana is also committed to helping the people affected by this consolidation in their transition to new employment. These people have served Dana and our customers well for many years, and they deserve our thanks and our support," added Cole. 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 off-highway manufacturing consolidation 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.
SOURCE Dana Corporation
Web Site: http://www.dana.com
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