Dana Comfortable With Range of Analysts' Estimates
Oct 25, 1999
TOLEDO, Ohio, Oct. 25 /PRNewswire/ -- At a meeting with a group of investors and analysts in Toronto today, Dana Corporation's (NYSE: DCN) President and Chief Executive Officer Joe Magliochetti and Vice President and Chief Financial Officer Bob Richter commented that they are comfortable with the range of earnings estimates analysts have published for the fourth quarter and for the year 2000. Last Monday, Dana released results for the third quarter announcing record sales, 6 percent over the prior year, and operating profit after tax that was up 27 percent over the third quarter of 1998. In the announcement, management advised investors that while these results and those of previous quarters had been achieved largely on the strength of a strong North American market for light and heavy vehicles that had offset disappointing results internationally, the company was not certain that North American results could continue to outpace weakness in other regions during the fourth quarter and into 2000. The announcement also indicated that in the event management concluded, during the fourth quarter, that North American markets were in fact weakening, it would consider rationalization actions, which could affect fourth quarter net income by $100-$200 million before tax. "The reaction from the analyst community, which generally seems to understand our business very well, has been to adjust our earnings forecast for the fourth quarter to a range of $.85-$1.05 per share. We're comfortable with that range," Richter said. "We are also now seeing many forecasts for our earnings per share for the year 2000 in the range of $4.40-$4.50. To us, this seems reasonable considering that international markets are not expected to improve much next year and that we see our North American markets retreating somewhat from today's lofty levels. This range would still represent a significant year-on- year profit increase resulting from continued implementation of synergy plans associated with last year's acquisition of Echlin and the benefits from any rationalization efforts we might undertake in the fourth quarter. "The conclusion of a number of analysts, with which we concur, is that at current levels Dana represents an attractive long-term investment," he said. 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 . 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 its customers to achieve projected vehicle sales levels, the cyclical nature of the automotive industry, and economic conditions. 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.