Dana Corporation Reports Stronger Third-Quarter Earnings

Oct 24, 2003

     - Third-quarter earnings significantly improved over 2002
     - Full-year net income forecast raised to range of $210 to $220 million
     - Net debt-to-capital ratio reduced to below 51 percent
     - Fourth-quarter dividend increased to 6 cents per share

    TOLEDO, Ohio, Oct. 24 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) today announced third-quarter net income totaling $61 million, or
41 cents per share, on sales of $2.4 billion.  These results are a significant
improvement over net income of $4 million, or 2 cents per share, on sales of
$2.4 billion during the same period last year.
    (Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    Third-quarter 2003 net income of $61 million included $9 million in after-
tax gains from the continued reduction of Dana Credit Corporation (DCC)
assets, and $9 million in after-tax gains from early retirement of debt.
Excluding these items, quarterly net income totaled $43 million, or 29 cents
per share.  Third-quarter 2002 reported net income of $4 million included
$40 million in after-tax charges associated with the company's restructuring
plan and $6 million of after-tax income from divested businesses classified as
"discontinued operations."  Excluding these items, third-quarter 2002 net
income totaled $38 million, or 26 cents per share.
    "The plan we initiated two years ago is now yielding results, achieving or
surpassing every goal associated with it," said Bill Carroll, Dana's Acting
President and Chief Operating Officer.  "Our performance, evident in today's
reported results, continues to validate our strategic course.  We're doing
what we said we'd do.  We are delivering world-class support to our customers,
our margins are improving, we are paying down debt, and we are increasing the
dividend payout to our shareholders."
    Looking ahead to 2004, Mr. Carroll noted that, "We expect that the costs
associated with our seven concurrent product launches will be largely behind
us, and that we will begin to deliver full returns on these programs.  Coupled
with a steadily improving heavy-truck market and stability in the light-truck
market, we believe Dana is positioned for further improved performance next
year."

    Nine-Month Results Improved
    In the first nine months of 2003, Dana's net income totaled $154 million,
or $1.04 per share, on sales of $7.4 billion.  This compares favorably to a
loss of $173 million, or $1.16 per share, on sales of $7.3 billion during the
first nine months of 2002.  Nine-month net income in 2003 included net gains
from divestitures and the repurchase of debt, and losses from discontinued
operations.  Net income in the period in 2002 reflected a charge of
$220 million, or $1.48 per share, associated with the required adoption of FAS
142 related to accounting for goodwill, as well as restructuring charges,
divestiture gains, and income from discontinued operations.

    Net Debt-to-Capital Reduced; Asset Reduction Continues at DCC
    "During the third quarter, we used a portion of the divestiture proceeds
we received earlier this year to repurchase some of our long-term bonds at
attractive prices," said Dana Chief Financial Officer Bob Richter.  "We bought
back bonds with a face value of $158 million, generating an after-tax gain of
$9 million.  This helped bring our ratio of net debt-to-capital at Sept. 30,
exclusive of DCC, down to 50.7 percent from 57.0 percent at the beginning of
the year.
    "We also reduced DCC assets by another $70 million during the quarter," he
said.  "This brings the total asset reduction since we began the program in
October 2001, to $780 million through September 30th, with a cumulative net
after-tax gain of $58 million."

    2003 Net Income Forecast Raised; 2004 Guidance Reaffirmed
    "We look forward to building on the momentum of all that we have
accomplished over the last two years," Mr. Richter added.  "On the strength of
the third-quarter results, we are again raising our guidance for 2003 full-
year net income to a range of $210 to $220 million and reaffirming our belief
that earnings in 2004 will be at least $300 million, which would be just over
$2 per share."

    Dividend Increased to 6 Cents per Share for the Fourth Quarter
    On Oct. 21, Dana announced that it would raise its dividend to 6 cents per
share for the fourth quarter.  "We are pleased that our continuing success in
executing our restructuring plan has enabled us to provide our shareholders
with this dividend increase," said Glen Hiner, Dana's Acting Chairman.  "We
committed to our shareholders that we would revisit our dividend policy as our
results approached what could be considered 'investment grade' performance.
Our confidence that our net debt-to-capital will be below 50 percent by year-
end moves us toward that goal.  Increasing the dividend at this time is also
consistent with our expectation of continued improvement in earnings and cash
flow."
    He added, "This action reflects the strong belief of Dana that dividends
are an important component of the total return that Dana provides to our
shareholders."

    Quarterly Conference Call Scheduled Today at 10 a.m.
    Dana will discuss its third-quarter results in a conference call at
10 a.m. (EDT) today.  The call may be accessed via Dana's web site
( http://www.dana.com ), where it will be accompanied by a brief slide presentation,
or by dialing (800) 275-3210.  Please dial into the conference five minutes
prior to the call.  An audio recording of this conference call will be
available after 1 p.m. today.  To access this recording, please dial
(800) 537-8823.  A webcast replay of the call will be available after 3 p.m.
today and will be accessible via the Dana web site.

    Dana Corporation is a global leader in the design, engineering, and
manufacture of value-added products and systems for automotive, commercial,
and off-highway vehicle manufacturers and their related aftermarkets.  The
company employs approximately 60,000 people worldwide.  Founded in 1904 and
based in Toledo, Ohio, Dana operates hundreds of technology, manufacturing,
and customer service facilities in 30 countries.  The company reported 2002
sales of $9.5 billion.
    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; the cyclical nature of the
global vehicular industry; the performance of the global aftermarket sector;
changes in business relationships with our major customers and in the timing,
size and continuation of their and our programs; the ability of our customers
and suppliers to achieve their projected sales and production levels;
competitive pressures on our sales and pricing; increases in production or
material costs that cannot be recouped in product pricing; the impact of our
collective bargaining negotiations and those of our customers in the North
American light vehicle sector; the continued success of our cost reduction and
cash management programs and of our long-term transformation strategy for the
company; costs associated with the tender offer for our common stock that was
commenced on July 9, 2003, by ArvinMeritor, Inc.; 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 contained in this release.
    Dana's shareholders, and its customers, suppliers and employees, are
strongly advised to read carefully Dana's solicitation/recommendation
statement regarding ArvinMeritor's tender offer, because it contains important
information.  Free copies of the solicitation/recommendation statement and the
related amendments, which have been filed by Dana with the Securities and
Exchange Commission, are available at the SEC's web site at http://www.sec.gov, or at
the Dana web site at http://www.dana.com, and also by directing requests to Dana's
Investor Relations Department or Dana's information agent, D.F. King & Co.,
Inc., at 1-800-901-0068.

          Dana Corporation
          Reconciliation to GAAP Presentation
          (in millions, except per share amounts)

                                           Three Months Ended September 30
                                                           Diluted per share
                                            Dollar amounts      amounts
                                             2003    2002    2003     2002

          Operating profit after tax (a)     $43     $38    $0.29    $0.26

          Add items excluded from
            segment performance measures:

            After-tax gains from
                 DCC asset sales               9     -       0.06      -
            After-tax gains from
                 early retirement of debt      9     -       0.06
            Restructuring charges after-
             tax                             -       (40)     -      (0.27)
            Income from discontinued
                 operations                  -         6      -       0.03

          Net income - GAAP basis            $61      $4    $0.41    $0.02

            (a) Operating profit after tax is presented in our Business
             Segment table as the key internal measure of performance used by
             management as a measure of segment profitability.


          Dana Corporation
          Condensed Statement of Income (Unaudited)
          (in millions, except per share amounts)

                                               Three Months Ended September 30
                                                     2003               2002

          Net sales                                 $2,410             $2,356
          Revenue from lease financing
            and other income                            42                 44
                                                     2,452              2,400

          Costs and expenses
            Cost of sales                            2,165              2,103
            Selling, general and
             administrative expenses                   171                199
            Restructuring charges                                          34
            Interest expense                            55                 63
                                                     2,391              2,399

          Income before income taxes                    61                  1
          Income tax expense                            (3)                (5)
          Minority interest                             (2)                (4)
          Equity in earnings
            of affiliates                                5                  7

           Income (loss) from continuing
            operations                                  61                 (1)

           Income from discontinued
            operations                                 -                    5

           Net income                                  $61                 $4

          Basic earnings (loss) per
           share
            Income (loss) from
             continuing operations                   $0.41             $(0.01)
            Income from discontinued
             operations                                                  0.03
            Net income                               $0.41              $0.02

          Diluted earnings (loss) per
           share
            Income (loss) from
             continuing operations                   $0.41             $(0.01)
            Income from discontinued
             operations                                                  0.03
            Net income                               $0.41              $0.02

          Average shares outstanding -
             For Basic EPS                             148                148
             For Diluted EPS                           149                149


         Dana Corporation
          Condensed Statement of Income (Unaudited)
          (in millions, except per share amounts)

                                                Nine Months Ended September 30
                                                     2003               2002

          Net sales                                 $7,393             $7,253
          Revenue from lease financing
            and other income                           112                172
                                                     7,505              7,425

          Costs and expenses
            Cost of sales                            6,624              6,412
            Selling, general and
             administrative expenses                   580                639
            Restructuring charges                                         122
            Interest expense                           170                195
                                                     7,374              7,368

          Income before income taxes                   131                 57
          Income tax expense                            (3)               (40)
          Minority interest                             (6)               (13)
          Equity in earnings
            of affiliates                               40                 40

           Income from continuing
            operations before effect
            of change in accounting                    162                 44

           Income (loss) from
            discontinued operations                     (8)                 3

           Income before effect of
            change in accounting                       154                 47

           Effect of change in
            accounting                                                   (220)

           Net income (loss)                          $154              $(173)

          Basic earnings (loss) per
           share
            Income from continuing
             operations before effect
             of change in accounting                 $1.10              $0.30
            Income (loss) from
             discontinued operations                 (0.06)              0.02
            Effect of change in
             accounting                                                 (1.49)
            Net income (loss)                        $1.04             $(1.17)

          Diluted earnings (loss) per
           share
            Income from continuing
             operations before effect
             of change in accounting                 $1.09              $0.30
            Income (loss) from
             discontinued operations                 (0.05)              0.02
            Effect of change in
             accounting                                                 (1.48)
            Net income (loss)                        $1.04             $(1.16)

          Average shares outstanding -
             For Basic EPS                             148                148
             For Diluted EPS                           149                149


            Dana Corporation
            Condensed Balance Sheet (Unaudited)
            (in millions)

                                                 September 30      December 31
             Assets                                    2003              2002

             Current assets
                Cash and cash equivalents              $636              $571
                Accounts receivable
                  Trade                               1,496             1,348
                  Other                                 313               320
                Inventories                           1,167             1,116
                Other current assets                    622               763

                  Total current assets                4,234             4,118

             Property, plant and
              equipment, net                          2,475             2,556
             Investment in leases                       658               827
             Investments and other assets             2,117             2,052

                Total assets                         $9,484            $9,553

             Liabilities and Shareholders'
              Equity

             Current liabilities
                Notes payable                          $584              $287
                Accounts payable                      1,187             1,004
                Other current liabilities             1,142             1,533

                  Total current
                   liabilities                        2,913             2,824

             Long-term debt                           2,653             3,215
             Deferred employee benefits
                and other noncurrent
                liabilities                           1,968             1,925
             Minority interest                          100               107
             Shareholders' equity                     1,850             1,482

                Total liabilities and
                  shareholders' equity               $9,484            $9,553


           Dana Corporation
           Condensed Statement of Cash Flows (Unaudited)
           (in millions)
                                                                  Three Months
                                                                      Ended
                                                                  September 30

                                                                   2003  2002

            Net income                                              $61    $4
            Depreciation and
             amortization                                            92   118
            Asset impairment                                          9    15
            Gain on divestitures, asset
             sales and note repurchases                              (7)   (1)
            Working capital increase                                (33)  (35)
            Other                                                    (5)  (16)
               Net cash flows - operating
                activities                                          117    85

            Purchases of property, plant
             and equipment                                          (73)  (85)
            Payments received on leases                               5    21
            Net loan repayments from
             customers                                                1     4
            Acquisitions                                            -     (31)
            Divestitures                                            -     163
            Asset sales                                              27     8
            Other                                                    24    (7)
               Net cash flows - investing
                activities                                          (16)   73

            Net change in short-term
             debt                                                    88   (71)
            Payments on and repurchases
             of long-term debt                                     (182)  (28)
            Dividends paid                                           (2)   (2)
            Other                                                    (1)   72
               Net cash flows - financing
                activities                                          (97)  (29)
            Net change in cash and cash
             equivalents                                              4   129
            Cash and cash equivalents -
             beginning of period                                    632   318
            Cash and cash equivalents -
             end of period                                         $636  $447


           Dana Corporation
           Condensed Statement of Cash Flows (Unaudited)
           (in millions)
                                                                 Nine Months
                                                                    Ended
                                                                 September 30

                                                                  2003   2002

            Net income (loss)                                     $154  $(173)
            Depreciation and amortization                          294    360
            Asset impairment                                        18     45
            Change in accounting for
             goodwill                                              -      220
            Gain on divestitures, asset
             sales and note repurchases                            (29)   (35)
            Working capital increase                              (317)   (11)
            Other                                                  (35)   (46)
               Net cash flows - operating
                activities                                          85    360

            Purchases of property, plant
             and equipment                                        (215)  (250)
            Payments received on leases                             21     46
            Net loan repayments from
             customers                                              12     18
            Acquisitions                                           -      (31)
            Divestitures                                           145    235
            Asset sales                                            206     67
            Other                                                   33    (18)
                Net cash flows - investing
                 activities                                        202     67

            Net change in short-term debt                           (9)  (282)
            Proceeds from long-term debt                           -      285
            Payments on and repurchases
             of long-term debt                                    (225)  (252)
            Dividends paid                                          (5)    (5)
            Other                                                   16     75
                Net cash flows - financing
                 activities                                       (223)  (179)
            Net change in cash and cash
             equivalents                                            64    248
            Net change in cash -
             discontinued operations                                 1
            Cash and cash equivalents -
             beginning of period                                   571    199
            Cash and cash equivalents -
             end of period                                        $636   $447


          Dana Corporation
           (Including Dana Credit Corporation on an Equity Basis)
           Condensed Statement of Income (Unaudited)
           (in millions)

                                               Three Months Ended September 30
                                                     2003              2002

            Net sales                               $2,410            $2,356
            Other income                                33                20

                                                     2,443             2,376

            Costs and expenses
              Cost of sales                          2,176             2,118
              Selling, general and
                administrative expenses                156               174
              Restructuring charges                                       34
              Interest expense                          40                42

                                                     2,372             2,368

            Income before income taxes                  71                 8
            Income tax expense                         (25)              (12)
            Minority interest                           (2)               (4)
            Equity in earnings
              of affiliates                             17                 7

            Income (loss) from continuing
             operations                                 61                (1)

            Income from discontinued
             operations                                                    5

            Net income                                 $61                $4


           Dana Corporation
           (Including Dana Credit Corporation on an Equity Basis)
           Condensed Statement of Income (Unaudited)
           (in millions)

                                                Nine Months Ended September 30
                                                     2003              2002

            Net sales                               $7,393            $7,253
            Other income                                71                47

                                                     7,464             7,300

            Costs and expenses
              Cost of sales                          6,658             6,457
              Selling, general and
                administrative expenses                529               558
              Restructuring charges                                      122
              Interest expense                         123               131

                                                     7,310             7,268

            Income before income taxes                 154                32
            Income tax expense                         (58)              (46)
            Minority interest                           (6)              (13)
            Equity in earnings
              of affiliates                             72                71
            Income from continuing
             operations before effect
             of change in accounting                   162                44

            Income (loss) from
             discontinued operations                    (8)                3

            Income before effect of
             change in accounting                      154                47

            Effect of change in
             accounting                                                 (220)

            Net income (loss)                         $154             $(173)


              Dana Corporation
              (Including Dana Credit Corporation on an Equity Basis)
              Condensed Balance Sheet (Unaudited)
              (in millions)

                                                 September 30      December 31
               Assets                                 2003              2002

               Current assets
                  Cash and cash
                   equivalents                        $550              $551
                  Accounts receivable
                    Trade                            1,496             1,348
                    Other                              306               209
                  Inventories                        1,167             1,116
                  Other current assets                 582               716

                    Total current assets             4,101             3,940

               Property, plant and
                equipment, net                       2,235             2,253
               Investments and other
                assets                               2,516             2,375

                  Total assets                      $8,852            $8,568

               Liabilities and
                Shareholders' Equity

               Current liabilities
                  Notes payable                       $359               $53
                  Accounts payable                   1,187             1,004
                  Other current
                   liabilities                       1,287             1,555

                    Total current
                     liabilities                     2,833             2,612

               Long-term debt                        2,090             2,462
               Deferred employee benefits
                  and other noncurrent
                  liabilities                        1,980             1,906
               Minority interest                        99               106
               Shareholders' equity                  1,850             1,482

                  Total liabilities and
                    shareholders' equity            $8,852            $8,568


           Dana Corporation
           (Including Dana Credit Corporation on an Equity Basis)
           Cash Flow Impact on Net Debt
           (in millions)

                                               Three Months Ended September 30
                                                       2003              2002
            Sources
               Net income                               $61                $4
               Depreciation                              78                96
               Asset sales (non-
                restructuring)                            1                 1
               Divestitures                                                31
               Working capital decrease
                (increase)                                3               (39)
                                                        143                93

            Uses
               Capital spend                            (76)              (52)
               Dividends                                 (2)               (2)
               Acquisitions                                               (31)
               Net changes in other
                accounts                                 11                81
                                                        (67)               (4)

            October 2001 restructuring
             cash impact
               After-tax charges                                           40
               Cash payments                            (28)              (30)
               Proceeds from asset sales                                    4
                                                        (28)               14

           Cash change in net debt                      $48              $103


          Dana Corporation
           (Including Dana Credit Corporation on an Equity Basis)
           Cash Flow Impact on Net Debt
           (in millions)

                                                Nine Months Ended September 30
                                                       2003              2002
            Sources
               Net income (loss)                       $154             $(173)
               Change in accounting for
                goodwill                                                  220
               Net income before goodwill
                change                                  154                47
               Depreciation                             249               291
               Asset sales (non-
                restructuring)                            7                12
               Divestitures                             145                41
               Working capital decrease
                (increase)                             (219)              (15)
                                                        336               376

            Uses
               Capital spend                           (209)             (186)
               Dividends                                 (5)               (5)
               Acquisitions                                               (31)
               Net changes in other
                accounts                                (19)               55
                                                       (233)             (167)

            October 2001 restructuring
             cash impact
               After-tax charges                                          119
               Cash payments                            (92)             (108)
               Proceeds from asset sales                 37                23
                                                        (55)               34

           Cash change in net debt                      $48              $243


         Dana Corporation
         Condensed Consolidating Statement of Income (Unaudited)
         (in millions)

                                         Three Months Ended September 30, 2003

                                            Dana
                                        with DCC on          Elimi-     Dana
                                           Equity            nation    Consol-
                                           Basis      DCC    Entries   idated

          Net sales                         $2,410      $       $      $2,410
          Other income                          33      27      (18)       42

                                             2,443      27      (18)    2,452

          Costs and expenses
            Cost of sales                    2,176              (11)    2,165
            Selling, general and
              administrative expenses          156      22       (7)      171
            Interest expense                    40      15                 55

                                             2,372      37      (18)    2,391

          Income (loss) before income
           taxes                                71     (10)     -          61
          Income tax benefit (expense)         (25)     22                 (3)
          Minority interest                     (2)                        (2)
          Equity in earnings
            of affiliates                       17       5      (17)        5

          Net income                           $61     $17     $(17)      $61

              This consolidating statement provides a reconciliation of the
              amounts presented for Dana with Dana Credit Corporation (DCC) on
              an equity basis to amounts reported for Dana Corporation on a
              fully consolidated basis.


         Dana Corporation
         Condensed Consolidating Statement of Income (Unaudited)
         (in millions)
                                         Nine Months Ended September 30, 2003

                                            Dana
                                        with DCC on          Elimi-     Dana
                                           Equity            nation    Consol-
                                           Basis      DCC    Entries   idated

          Net sales                         $7,393      $       $      $7,393
          Other income                          71     101      (60)      112

                                             7,464     101      (60)    7,505

          Costs and expenses
            Cost of sales                    6,658              (34)    6,624
            Selling, general and
              administrative expenses          529      77      (26)      580
            Interest expense                   123      47                170

                                             7,310     124      (60)    7,374

          Income (loss) before income
           taxes                               154     (23)     -         131
          Income tax benefit (expense)         (58)     55                 (3)
          Minority interest                     (6)                        (6)
          Equity in earnings
            of affiliates                       72      16      (48)       40

          Income from continuing
           operations                          162      48      (48)      162

          Loss from discontinued
           operations                           (8)                        (8)

          Net income                          $154     $48     $(48)     $154

              This consolidating statement provides a reconciliation of the
              amounts presented for Dana with Dana Credit Corporation (DCC) on
              an equity basis to amounts reported for Dana Corporation on a
              fully consolidated basis.


        Dana Corporation
         Condensed Consolidating Statement of Income (Unaudited)
         (in millions)

                                            Three Months Ended September 30,
                                                          2002
                                            Dana
                                         with DCC on          Elimi-     Dana
                                            Equity            nation   Consol-
                                            Basis      DCC    Entries   idated

          Net sales                          $2,356     $        $    $2,356
          Other income                           20     55      (31)      44

                                              2,376     55      (31)   2,400

          Costs and expenses
            Cost of sales                     2,118             (15)   2,103
            Selling, general and
              administrative expenses           174     37      (12)     199
            Restructuring charges                34                       34
            Interest expense                     42     21                63

                                              2,368     58      (27)   2,399

          Income (loss) before income
           taxes                                  8     (3)      (4)       1
          Income tax benefit (expense)          (12)     6        1       (5)
          Minority interest                      (4)                      (4)
          Equity in earnings
            of affiliates                         7      6       (6)       7

          Income (loss) from continuing
           operations                            (1)     9       (9)      (1)

          Income from discontinued
           operations                             5                        5

          Net income                             $4     $9      $(9)      $4

              This consolidating statement provides a reconciliation of the
              amounts presented for Dana with Dana Credit Corporation (DCC) on
              an equity basis to amounts reported for Dana Corporation on a
              fully consolidated basis.


        Dana Corporation
         Condensed Consolidating Statement of Income (Unaudited)
         (in millions)

                                         Nine Months Ended September 30, 2002

                                            Dana
                                        with DCC on          Elimi-     Dana
                                           Equity            nation    Consol-
                                           Basis      DCC    Entries   idated

          Net sales                         $7,253     $        $      $7,253
          Other income                          47     220      (95)      172

                                             7,300     220      (95)    7,425

          Costs and expenses
            Cost of sales                    6,457              (45)    6,412
            Selling, general and
              administrative expenses          558     120      (39)      639
            Restructuring charges              122                        122
            Interest expense                   131      64                195

                                             7,268     184      (84)    7,368

          Income before income taxes            32      36      (11)       57
          Income tax benefit (expense)         (46)      3        3       (40)
          Minority interest                    (13)                       (13)
          Equity in earnings
            of affiliates                       71      18      (49)       40

          Income from continuing
           operations                           44      57      (57)       44

          Income from discontinued
           operations                            3                          3

          Income before effect of change
            in accounting                       47      57      (57)       47

          Effect of change in accounting      (220)                      (220)

          Net income (loss)                  $(173)    $57     $(57)    $(173)

              This consolidating statement provides a reconciliation of the
              amounts presented for Dana with Dana Credit Corporation (DCC) on
              an equity basis to amounts reported for Dana Corporation on a
              fully consolidated basis.


           Dana Corporation
           Condensed Consolidating Balance Sheet (Unaudited)
           (in millions)

                                                September 30, 2003

                                        Dana
                                     with DCC on            Elimi-     Dana
                                       Equity               nation    Consol-
              Assets                    Basis       DCC     Entries   idated

            Current assets
              Cash and cash
               equivalents               $550       $86        $         $636
              Accounts receivable
               Trade                    1,496                           1,496
               Other                      306         7                   313
              Inventories               1,167                           1,167
              Other current assets        582       211       (171)       622

               Total current assets     4,101       304       (171)     4,234

            Property, plant and
             equipment, net             2,235        16        224      2,475
            Investment in leases                    882       (224)       658
            Investments and other
             assets                     2,516       520       (919)     2,117

              Total assets             $8,852    $1,722    $(1,090)    $9,484

            Liabilities and
             Shareholders' Equity

            Current liabilities
              Notes payable              $359      $225        $         $584
              Accounts payable          1,187                           1,187
              Other current
               liabilities              1,287        26       (171)     1,142

               Total current
                liabilities             2,833       251       (171)     2,913

            Long-term debt              2,090       563                 2,653
            Deferred employee
             benefits and other
             noncurrent liabilities     1,980       584       (596)     1,968
            Minority interest              99         1                   100
            Shareholders' equity        1,850       323       (323)     1,850

              Total liabilities and
               shareholders' equity    $8,852    $1,722    $(1,090)    $9,484

               This consolidating statement provides a reconciliation of the
               amounts presented for Dana with Dana Credit Corporation (DCC)
               on an equity basis to amounts reported for Dana Corporation on
               a fully consolidated basis.


           Dana Corporation
           Condensed Consolidating Balance Sheet (Unaudited)
           (in millions)

                                                 December 31, 2002

                                        Dana
                                     with DCC on            Elimi-     Dana
                                       Equity               nation    Consol-
              Assets                    Basis       DCC     Entries   idated

            Current assets
              Cash and cash
               equivalents                 $551       $20      $         $571
              Accounts receivable
                Trade                     1,348                         1,348
                Other                       209       111                 320
              Inventories                 1,116                         1,116
              Other current assets          716       105      (58)       763

                Total current assets      3,940       236      (58)     4,118

            Property, plant and
             equipment, net               2,253        39      264      2,556
            Investment in leases                    1,091     (264)       827
            Investments and other
             assets                       2,375       569     (892)     2,052

              Total assets               $8,568    $1,935    $(950)    $9,553

            Liabilities and
             Shareholders' Equity

            Current liabilities
              Notes payable                 $53      $234      $         $287
              Accounts payable            1,004                         1,004
              Other current
               liabilities                1,555        37      (59)     1,533

                Total current
                 liabilities              2,612       271      (59)     2,824

            Long-term debt                2,462       753               3,215
            Deferred employee benefits
              and other noncurrent
              liabilities                 1,906       639     (620)     1,925
            Minority interest               106         1                 107
            Shareholders' equity          1,482       271     (271)     1,482

              Total liabilities and
                shareholders' equity     $8,568    $1,935    $(950)    $9,553

                This consolidating statement provides a reconciliation of the
                amounts presented for Dana with Dana Credit Corporation (DCC)
                on an equity basis to amounts reported for Dana Corporation on
                a fully consolidated basis.


          Dana Corporation
          Consolidating Cash Flow Impact on Net Debt
          (in millions)

                                            Three Months Ended September 30,
                                                          2003

                                               Dana
                                           with DCC on         Elimi-   Dana
                                             Equity            nation  Consol-
                                              Basis      DCC   Entries idated

         Sources
           Net income                           $61     $17     $(17)     $61
           Depreciation                          78      14                92
           Asset sales (non-restructuring)        1      30       (4)      27
           Working capital decrease
            (increase)                            3      (4)      (4)      (5)
                                                143      57      (25)     175

         Uses
           Capital spend                        (76)     (1)       4      (73)
           Dividends                             (2)                       (2)
           Net changes in other accounts         11      (4)      21       28
                                                (67)     (5)      25      (47)

         October 2001 restructuring cash
          impact
           Cash payments                        (28)                      (28)
           Proceeds from asset sales            -                         -
                                                (28)    -        -        (28)
         Cash change in net debt                $48     $52     $-       $100

         Analysis of components of increase
          (decrease) in net debt:
           Net change in short-term debt        $92       $      $        $92
           Repurchases of long-term debt       (140)                     (140)
           Payments on long-term debt             3     (52)              (49)
           Change in cash                        (3)    -                  (3)
         Cash change in net debt                (48)    (52)     -       (100)
           Non-cash changes in net debt         (53)     (1)              (54)
         Total change in net debt             $(101)   $(53)    $-      $(154)

           This consolidating statement provides a reconciliation of the
           amounts presented for Dana with Dana Credit Corporation (DCC) on an
           equity basis to amounts presented for Dana Corporation on a
           fully consolidated basis.


         Dana Corporation
          Consolidating Cash Flow Impact on Net Debt
          (in millions)

                                             Nine Months Ended September 30,
                                                          2003

                                              Dana
                                           with DCC on         Elimi-   Dana
                                             Equity            nation  Consol-
                                              Basis      DCC   Entries idated
         Sources
           Net income                         $154      $48    $(48)     $154
           Depreciation                        249       45               294
           Asset sales (non-restructuring)       7      167      (5)      169
           Divestitures                        145                        145
           Working capital decrease
            (increase)                        (219)      (8)      2      (225)
                                               336      252     (51)      537

         Uses
           Capital spend                      (209)      (9)      3      (215)
           Dividends                            (5)                        (5)
           Net changes in other accounts       (19)     (11)     48        18
                                              (233)     (20)     51      (202)

         October 2001 restructuring cash
          impact
           Cash payments                       (92)                       (92)
           Proceeds from asset sales            37                         37
                                               (55)     -       -         (55)
         Cash change in net debt               $48     $232    $-        $280

         Analysis of components of increase
          (decrease) in net debt:
           Net change in short-term debt       $87     $(96)   $          $(9)
           Repurchases of long-term debt      (140)                      (140)
           Proceeds from swap settlement        18                         18
           Net payments on long-term debt      (15)     (70)              (85)
           Change in cash                        2      (66)              (64)
         Cash change in net debt               (48)    (232)    -        (280)
           Non-cash changes in net debt        (17)     (33)              (50)
         Total change in net debt             $(65)   $(265)   $-       $(330)

           This consolidating statement provides a reconciliation of the
           amounts presented for Dana with Dana Credit Corporation (DCC) on an
           equity basis to amounts presented for Dana Corporation on a
           fully consolidated basis.


          Dana Corporation
          Consolidating Cash Flow Impact on Net Debt
          (in millions)

                                            Three Months Ended September 30,
                                                          2002

                                              Dana
                                           with DCC on         Elimi-   Dana
                                             Equity            nation  Consol-
                                              Basis      DCC   Entries idated

         Sources
           Net income                            $4      $8     $(8)       $4
           Depreciation                          96      22               118
           Asset sales                            1      32     (29)        4
           Divestitures                          31     132               163
           Working capital increase             (39)     (2)     (4)      (45)
                                                 93     192     (41)      244

         Uses
           Capital spend                        (52)    (53)     20       (85)
           Dividends                             (2)                       (2)
           Acquisitions                         (31)                      (31)
           Net changes in other accounts         81     (83)     21        19
                                                 (4)   (136)     41       (99)

         October 2001 restructuring cash
          impact
           After-tax charges                     40                        40
           Cash payments                        (30)                      (30)
           Proceeds from asset sales              4                         4
                                                 14     -       -          14
         Cash change in net debt               $103     $56    $-        $159

         Analysis of components of increase
          (decrease) in net debt:
           Net change in short-term debt       $(82)    $23    $         $(59)
           Proceeds from long-term debt         -       -                 -
           Proceeds from swap termination        72                        72
           Payments on long term debt           (21)    (22)              (43)
           Change in cash                       (72)    (57)             (129)
         Cash change in net debt               (103)    (56)    -        (159)
           Non-cash changes in net debt         (11)    (16)              (27)
         Total change in net debt             $(114)   $(72)   $-       $(186)

           This consolidating statement provides a reconciliation of the
           amounts presented for Dana with Dana Credit Corporation (DCC) on an
           equity basis to amounts presented for Dana Corporation on a
           fully consolidated basis.


          Dana Corporation
          Consolidating Cash Flow Impact on Net Debt
          (in millions)

                                          Nine Months Ended September 30, 2002

                                              Dana
                                           with DCC on         Elimi-   Dana
                                             Equity            nation  Consol-
                                              Basis      DCC   Entries idated
         Sources
           Net income (loss)                 $(173)     $56    $(56)    $(173)
           Change in accounting for
            goodwill                           220                        220
           Net income before goodwill
            change                              47       56     (56)       47
           Depreciation                        291       69               360
           Asset sales                          12       32                44
           Divestitures                         41      194               235
           Working capital increase            (15)     (14)      7       (22)
                                               376      337     (49)      664

         Uses
           Capital spend                      (186)     (55)     (9)     (250)
           Dividends                            (5)                        (5)
           Acquisitions                        (31)                       (31)
           Net changes in other accounts        55      (97)     58        16
                                              (167)    (152)     49      (270)

         October 2001 restructuring cash
          impact
           After-tax charges                   119                        119
           Cash payments                      (108)                      (108)
           Proceeds from asset sales            23                         23
                                                34      -       -          34
         Cash change in net debt              $243     $185    $-        $428

         Analysis of components of
          increase (decrease) in net debt:
           Net change in short-term debt     $(207)    $(63)   $        $(270)
           Proceeds from long-term debt        250       35               285
           Proceeds from swap termination       72                         72
           Payments on long term debt         (167)    (100)             (267)
           Change in cash                     (191)     (57)             (248)
         Cash change in net debt              (243)    (185)    -        (428)
           Non-cash changes in net debt         40      (11)               29
         Total change in net debt            $(203)   $(196)   $-       $(399)

           This consolidating statement provides a reconciliation of the
           amounts presented for Dana with Dana Credit Corporation (DCC) on an
           equity basis to amounts presented for Dana Corporation on a
           fully consolidated basis.


                                Investor Relations
                                 Dana Corporation
                   Quarterly Financial Information (Unaudited)
                     For Nine Months Ended September 30, 2003
                                  (in millions)

                                                         Inter-
                                                        Segment
                                       External Sales    Sales        EBIT
                                         03      02     03    02    03    02
    Automotive Systems Group           $2,773  $2,655   $95   $70  $155  $153
    Automotive Aftermarket Group        1,656   1,678    10    12    94   134
    Engine and Fluid Management Group   1,494   1,496    71    75    98    95
    Heavy Vehicle Technologies and
     Systems Group                      1,425   1,378    58    74    93    86
    Dana Commercial Credit
    Other                                  45      46     5    10  (185) (164)
    Continuing Operations               7,393   7,253   239   241   255   304

    Discontinued Operations                                          (9)   (3)
    Unusual Items Excluded from
         Performance Measurement                                      5  (158)
    Effect of change in Accounting
    Consolidated                       $7,393  $7,253  $239  $241  $251  $143

    North America                      $5,300  $5,500   $61   $28  $261  $351
    Europe                              1,292   1,111    62    53    79    48
    South America                         406     367   139   137    58    54
    Asia Pacific                          395     275     2     1    37    12
    Dana Commercial Credit
    Other                                                          (180) (161)
    Continuing Operations               7,393   7,253   264   219   255   304

    Discontinued Operations                                          (9)   (3)
    Unusual Items Excluded from
         Performance Measurement                                      5  (158)
    Effect of change in Accounting
    Consolidated                       $7,393  $7,253  $264  $219  $251  $143
    Information for Discontinued
     Operations                           155     623     6    50

    The differences between the net profit (loss) amounts reported for
    discontinued operations above and the income (loss) from discontinued
    operations reported on the condensed statement of income result from the
    separate reporting of unusual items excluded from performance measurement,
    which include amounts recorded by our discontinued operations.

    See Notes 20 and 21 in Dana's 2002 Annual Report for further information
    ( http://WWW.Dana.Com )


                                Investor Relations
                                 Dana Corporation
                   Quarterly Financial Information (Unaudited)
                     For Nine Months Ended September 30, 2003
                                  (in millions)

                                  Operating PAT   Net Profit     Net Assets
                                   03       02     03    02      03      02
    Automotive Systems Group      $116      $116   $52    $52  $1,912  $1,796
    Automotive Aftermarket Group    59        82    14     36   1,005   1,001
    Engine and Fluid Management
     Group                          64        62    31     28   1,030     948
    Heavy Vehicle Technologies
     and Systems Group              57        53    17     15     635     674
    Dana Commercial Credit          18        24    18     24     324     258
    Other                         (187)     (197)   (5)   (15)     13      21
    Continuing Operations          127       140   127    140   4,919   4,698

    Discontinued Operations         (6)       (1)   (6)    (1)
    Unusual Items Excluded from
         Performance Measurement    33       (92)   33    (92)
    Effect of change in
     Accounting                             (220)        (220)
    Consolidated                  $154     $(173) $154  $(173) $4,919  $4,698

    North America                 $154      $217   $41    $91  $3,003  $2,980
    Europe                          61        42    32     15   1,197   1,095
    South America                   36        33    27     25     338     296
    Asia Pacific                    24         8    13            179     178
    Dana Commercial Credit          18        24    18     24     324     258
    Other                         (166)     (184)   (4)   (15)   (122)   (109)
    Continuing Operations          127       140   127    140   4,919   4,698

    Discontinued Operations         (6)       (1)   (6)    (1)
    Unusual Items Excluded from
         Performance Measurement    33       (92)   33    (92)
    Effect of change in
     Accounting                             (220)        (220)
    Consolidated                  $154     $(173) $154  $(173) $4,919  $4,698
    Information for Discontinued
     Operations

    The differences between the net profit (loss) amounts reported for
    discontinued operations above and the income (loss) from discontinued
    operations reported on the condensed statement of income result from the
    separate reporting of unusual items excluded from performance measurement,
    which include amounts recorded by our discontinued operations.

    See Notes 20 and 21 in Dana's 2002 Annual Report for further information
    ( http://WWW.Dana.Com )


                                Investor Relations
                                 Dana Corporation
                   Quarterly Financial Information (Unaudited)
                                    Q3 - 2003
                                  (in millions)

                                                         Inter-
                                                        Segment
                                       External Sales    Sales        EBIT
                                         03      02     03    02    03    02
    Automotive Systems Group             $895    $836   $33   $23   $57   $42
    Automotive Aftermarket Group          571     558     3     5    42    43
    Engine and Fluid Management Group     458     473    24    25    28    28
    Heavy Vehicle Technologies and
     Systems Group                        471     474    17    20    38    32
    Dana Commercial Credit
    Other                                  15      15     2     2   (70)  (48)
    Continuing Operations               2,410   2,356    79    75    95    97

    Discontinued Operations                                                 7
    Unusual Items Excluded from
         Performance Measurement                                     12   (50)
    Effect of change in Accounting
    Consolidated                       $2,410  $2,356   $79   $75  $107   $54

    North America                      $1,709  $1,773   $19   $10   $94   $96
    Europe                                410     361    20    16    28    20
    South America                         157     116    48    48    25    23
    Asia Pacific                          134     106     1     1    13     6
    Dana Commercial Credit
    Other                                                           (65)  (48)
    Continuing Operations               2,410   2,356    88    75    95    97

    Discontinued Operations                                                 7
    Unusual Items Excluded from
         Performance Measurement                                     12   (50)
    Effect of change in Accounting
    Consolidated                       $2,410  $2,356   $88   $75  $107   $54
    Information for Discontinued
     Operations                                   210          17

    The differences between the net profit (loss) amounts reported for
    discontinued operations above and the income (loss) from discontinued
    operations reported on the condensed statement of income result from the
    separate reporting of unusual items excluded from performance measurement,
    which include amounts recorded by our discontinued operations.

    See Notes 20 and 21 in Dana's 2002 Annual Report for further information
    ( http://WWW.Dana.Com )


                                Investor Relations
                                 Dana Corporation
                   Quarterly Financial Information (Unaudited)
                                    Q3 - 2003
                                  (in millions)

                                    Operating PAT  Net Profit    Net Assets
                                     03       02    03    02     03      02
    Automotive Systems Group         $35      $28   $12    $9  $1,912  $1,796
    Automotive Aftermarket Group      26       26     9    12   1,005   1,001
    Engine and Fluid Management
     Group                            18       18     7     8   1,030     948
    Heavy Vehicle Technologies and
     Systems Group                    23       20     9     7     635     674
    Dana Commercial Credit             6        7     6     7     324     258
    Other                            (65)     (61)         (5)     13      21
    Continuing Operations             43       38    43    38   4,919   4,698

    Discontinued Operations                     6           6
    Unusual Items Excluded from
         Performance Measurement      18      (40)   18   (40)
    Effect of change in Accounting
    Consolidated                     $61       $4   $61    $4  $4,919  $4,698

    North America                    $54      $58   $15   $19  $3,003  $2,980
    Europe                            15       13     5     4   1,197   1,095
    South America                     16       14    12    11     338     296
    Asia Pacific                       8        4     4     1     179     178
    Dana Commercial Credit             6        7     6     7     324     258
    Other                            (56)     (58)    1    (4)   (122)   (109)
    Continuing Operations             43       38    43    38   4,919   4,698

    Discontinued Operations                     6           6
    Unusual Items Excluded from
         Performance Measurement      18      (40)   18   (40)
    Effect of change in Accounting
    Consolidated                     $61       $4   $61    $4  $4,919  $4,698
    Information for Discontinued
     Operations

    The differences between the net profit (loss) amounts reported for
    discontinued operations above and the income (loss) from discontinued
    operations reported on the condensed statement of income result from the
    separate reporting of unusual items excluded from performance measurement,
    which include amounts recorded by our discontinued operations.

    See Notes 20 and 21 in Dana's 2002 Annual Report for further information
    ( http://WWW.Dana.Com )


SOURCE Dana Corporation

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

Photo Notes: http://www.newscom.com/cgi-bin/prnh/19990903/DANA AP
Archive: http://photoarchive.ap.org PRN Photo Desk, 888-776-6555
or 212-782-2840
Company News On Call: Company News On-Call:
http://www.prnewswire.com/comp/226839.html


print Print   email Email      rss RSS