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 warehouses. "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 Magliochetti. "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, Pennsylvania. "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
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