Dana Corporation Intends To Sell English Forging Facility
Nov 8, 1999
TOLEDO, Ohio, Nov. 8 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today announced that it intends to sell its Kirkstall, Leeds, England, forging operations. The 660,000-square-feet facility produces forgings for axle components and the oil and petro-chemical industries. It also manufactures axles for on- and off-highway applications. The facility employs approximately 450 people. Dana plans to retain the engineering and sales responsibilities for finished drive and front-steer axles manufactured at the facility. Nick Cole, president of Dana's Off-Highway Systems Group, said, "This decision was not easy and does not reflect on the people at Kirkstall or on the future business opportunities for that operation. Forging is simply not a core Dana technology. We believe this operation will be more competitive as part of a company that considers forging central to its business." Cole said the proposed sale is consistent with Dana's previously announced Five-Point Plan for continued growth and increased profitability, and it comes in response to expressions of interest from potential buyers. "This is another clear example of Dana's strategy to divest operations that are either non-strategic or under-performing -- which is one of the tactics of our Five-Point Plan," said Joe Magliochetti, Dana president and CEO. Southwood J. Morcott, Dana chairman, said, "This year, we have said we plan to sell operations with annual sales of about $850 million. As these divestitures conclude, they will provide additional cash flow to further implement our Five-Point Plan." Dana unveiled its Five-Point Plan in April. A tactical link to the company's overall strategic plan, the plan provides elements for continued growth and increased profitability. The plan includes the following five tactics: * Grow while focusing on returns and maintaining financial discipline; * Seek strategic, bolt-on acquisitions at reasonable valuations; * Divest non-strategic and non-performing operations; * Repurchase stock as the company generates cash; and * Complete integration efforts and realize synergy savings. Dana has retained the investment-banking firm of CIBC World Markets to assist in the transaction. 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 330 major facilities in 32 countries and employs more than 86,000 people. The company reported sales of $12.5 billion in 1998. Dana's Internet address is http://www.dana.com .
SOURCE Dana Corporation
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