Dana Corporation Comments on Second-Quarter Trend

    TOLEDO, Ohio, June 26 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today
announced that it expects second-quarter earnings to be below current
consensus estimates of $1.14 per share. The company, which will report second-
quarter results on July 18, 2000, anticipates that operating earnings per
share will be in the range of $1.00 to $1.03.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    Joe Magliochetti, Dana's chairman and chief executive officer, noted, "The
anticipated shortfall reflects disappointing performance in our automotive
aftermarket business unit. This is primarily due to the effects of an
industry-wide weakness in this market segment in North America and, to a
lesser extent, Europe.
    "Continuing delays in consolidating our aftermarket Engine Controls
warehouse network are also contributing significantly to this
underperformance," he added. "These start-up issues have resulted in
duplication of inventory and handling costs as we strive to maintain service
levels to our customers. We are working diligently to fully integrate our new
automated distribution systems by the end of the year.  Completion of the
distribution project will provide unequalled service capabilities for our
customers and will allow us to improve our return on invested capital in the
aftermarket business unit.
    "We will also continue to sharpen the strategic focus of this group."
Consistent with this, the company today announced plans to divest its Mr.
Gasket Performance Group.
    "All of Dana's other six strategic business units continue to perform in
line with our expectations," Mr. Magliochetti said. "So, while we are cautious
about prospects for aftermarket improvement in the second half, we do not
anticipate our full-year results falling below the current range of
estimates."
    Dana will hold a conference call at 8:30 a.m. (EDT) Tuesday, June 27,
2000. 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) Wednesday, June 28. To access this recording,
please dial (800) 537-8823.
    Dana Corporation is one of the world's largest independent suppliers to
vehicle manufacturers and their related aftermarkets. Founded in 1904 and
based in Toledo, Ohio, the company operates some 320 major facilities in 32
countries and employs more than 82,000 people. The company reported sales of
$13.2 billion in 1999. Dana's Internet address is http://www.dana.com.
    This news release contains "forward-looking" statements within the meaning
of the Private Securities Litigation Reform Act of 1995.  Such statements
involve assumptions, uncertainties and risks and Dana's actual results,
performance and achievements may differ materially from those expressed or
implied herein.  Factors that could affect Dana's actual results include the
performance of the global automotive aftermarket segment, international
economic conditions and further delays in consolidation of the company's
Engine Controls warehouse network.  Other 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

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