Dana Corporation Announces Organizational Changes, Appoints Technology Officer, and Provides Additional Details on Restructuring Plans
Dec 3, 2001
TOLEDO, Ohio, Dec. 3 /PRNewswire/ -- At an analyst conference on Friday, Nov. 30, Dana Corporation (NYSE: DCN) Chairman and CEO Joe Magliochetti and Chief Financial Officer Bob Richter announced organizational changes and the appointment of a technology officer. They also provided further information regarding the company's previously announced restructuring plans. (Photo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA ) Organizational Changes Target Improved Efficiency In conjunction with its efforts to serve customers more efficiently, Dana announced the following organizational changes: * Consolidation of the company's Engine Systems and Fluid Systems business units into the newly created Engine and Fluid Management Group. The group will be led by Mike Laisure, who most recently headed Dana's Fluid Systems Group. * Integration of the axle manufacturing operations of its Off-Highway Systems Group with those of its Commercial Vehicle Systems unit. "Over the past several months, we have talked about streamlining our organization to focus more sharply on our foundation businesses," said Mr. Magliochetti. "The creation of the Engine and Fluid Management Group and the recently announced plans to divest the businesses of our Dana Commercial Credit leasing services operation are significant steps in that direction, effectively condensing our structure from seven business units to five." The new Engine and Fluid Management Group encompasses more than 130 operations in 15 countries with combined annual sales of approximately $2.3 billion. The group will provide strategic components and systems to enhance fuel economy and power generation. "There are a number of new and exciting powertrain innovations being considered within our industry including fuel cells and other hybrid configurations," Mr. Magliochetti said. "This new structure will better enable Dana to fully capitalize on these opportunities." To further leverage its engineering and manufacturing capabilities, Dana will also integrate its off-highway axle component manufacturing operations into its Commercial Vehicle Systems unit, reporting to group president Rick Clayton. The company's off-highway sales, marketing, assembly, systems engineering and transmission manufacturing functions will continue to report to Off-Highway Systems President Nick Cole. "In the current competitive environment, it is more essential than ever before that we optimize our global capabilities and provide even greater value for our customers," Mr. Magliochetti said. "This new structure will enable the Off-Highway Systems Group to continue its comprehensive market focus, while we accelerate our axle manufacturing efficiencies." Technology Officer Appointed The company also announced the appointment of Chuck Heine to the newly created position of President of Technology Development and Diversified Products. In this role, Mr. Heine, who has held numerous positions with Dana both in North America and Asia, essentially becomes Dana's chief technology officer. This appointment underscores Dana's commitment to new product growth through innovation and technology. Reporting directly to the chairman, Mr. Heine has responsibility for Dana's Technical Resource Park; the Dana Motors and Controls Division; American Electronic Components; Automotive Motion Technology, Ltd.; and certain emerging technologies. He holds a bachelor of science degree in Mechanical Engineering from Purdue University, a master of science degree in Engineering from the University of Texas, and a master's degree in Business Administration from Indiana University. "Chuck will play a key role in our pursuit of broader applications of our intellectual properties, as well as securing longer-term opportunities with our key customers and other technical constituencies," Mr. Magliochetti said. Restructuring Efforts Progressing In addition to the organizational changes, Dana also updated its estimates of the charges related to its restructuring plans announced on Oct. 17: * Total restructuring costs are expected to be approximately $445 million after tax. * Approximately 35 percent of these costs will be non-cash. Most of the cash portion will be severance costs related to the previously announced workforce reduction of more than 15 percent. * About 65 percent of the charges will be incurred in the current quarter, with the balance expected to be incurred in 2002. * Approximately 75 percent of the charges will be directly related to North American operations. * About 55 percent of the restructuring charges will be incurred by the business units primarily serving the light vehicular OE marketplace, and 26 percent will be incurred by the Automotive Aftermarket Group. "This is the most extensive restructuring that Dana has ever undertaken and will include the closure or consolidation of more than 30 facilities worldwide," Mr. Richter said. "While prompted by the extraordinary environment in which we find ourselves, it is supported by the belief that we will emerge a stronger, more competitive Dana, better positioned for the future." Dana Corporation Overview Dana Corporation is one of the world's largest suppliers of components, modules and complete systems to global vehicle manufacturers and their related aftermarkets. Founded in 1904 and based in Toledo, Ohio, the company operates some 300 major facilities in 34 countries and employs approximately 75,000 people. The company reported sales of $12.3 billion in 2000. Dana's Internet address is http://www.dana.com . Forward-Looking Statements Certain statements contained herein (including our forecasts, beliefs, and expectations) constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve assumptions, uncertainties, and risks, and Dana's actual future results, performance, or achievements may differ materially from those expressed or implied in these statements. Among the factors that could affect Dana's actual results are the impact of national and international economic conditions (including additional adverse effects from terrorism or hostilities) on production and sales by the company's vehicular customers; the company's ability to complete the sale of DCC's businesses as contemplated; and the success and timing of the company's restructuring, cost reduction and cash management programs. Additional factors are detailed in Dana's public filings with the Securities and Exchange Commission. Dana does not undertake to update any forward-looking statements contained herein.
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