Dana Corporation Comments On Earnings Outlook

Sep 18, 2000

    TOLEDO, Ohio, Sept. 18 /PRNewswire/ -- Dana Corporation (NYSE: DCN)
announced today that it anticipates third-quarter operating earnings will be
within the range of 41 to 46 cents per share, which is below the current
consensus estimate of 86 cents per share.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    Among the external factors impacting the results are a number of broad
issues that are affecting the industry as a whole.  These include unexpected
reductions in production schedules for light truck and sport utility vehicles
manufactured by Ford and other of Dana's largest customers, a declining U.S.
heavy truck market, softness in the U.S. and European aftermarket, and the
continued weakening of the Euro.  Also, results were impacted by issues
related to software implementation and integration associated with the
consolidation of the Automotive Aftermarket Group's Engine Controls
    "This has been a year of continuous challenges at a time when we are in
the midst of repositioning the company to focus on long-term, profitable
growth in our foundation businesses," said Dana Chairman and CEO Joe
    "We have taken a number of decisive actions to reposition our business for
greater stability.  Our new Automotive Aftermarket leadership team is
aggressively working to bring our state-of-the-art warehouse distribution
system on-line," he said.  "To respond to lower volumes, we have reduced the
workforce in those business units most affected.  This is over and above the
recently announced closure of our Structural Products facility in Reading,
    "These conditions have resulted in lower-than-anticipated earnings this
quarter, and we remain guarded in our outlook for the fourth quarter.
However, we continue to manage for cash flow, which remains in-line with our
expectations for the year," Mr. Magliochetti added.  "In combination with new
business gains this year, this bodes well for the longer term."
    Dana Chief Financial Officer Bob Richter said, "In addition to our efforts
to improve short-term profitability, we remain focused on our strategic
direction and will pursue even more aggressively the divestiture of non-
strategic operations.  We expect to use divestiture proceeds to further invest
in the company's foundation businesses and to repurchase stock."
    Dana will hold a conference call at 2 p.m. (EDT) today.  The dial-in
number is (800) 275-3210.  Please dial into the conference 15 minutes prior to
the start.  A recording of this conference call will be available after 5 p.m.
(EDT) Tuesday, Sept. 19.  To access this recording, please dial
(800) 537-8823.
    Dana Corporation is one of the world's largest suppliers to vehicle
manufacturers and their related aftermarkets.  Founded in 1904 and based in
Toledo, Ohio, the company operates approximately 320 major facilities in 32
countries and employs more than 80,000 people.  The company reported sales of
$13.2 billion in 1999.  Dana's Internet address is http://www.dana.com .
    Certain statements contained herein 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 ability of various
vehicular customers and suppliers to achieve projected sales and production
levels, the cyclical nature of the vehicular industry, international economic
conditions, and further delays in consolidation of the company's Engine
Controls warehouse network.  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.

SOURCE Dana Corporation

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

Photo Notes: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
Company News On Call: Company News On-Call:
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