Dana Corporation Announces Work Force Reductions at Canadian and Australian Plants as Frame and Axle Supply Agreements Expire
Dec 20, 2005
TOLEDO, Ohio, Dec. 20 /PRNewswire-FirstCall/ -- Dana Corporation (NYSE: DCN) today announced it will eliminate a total of approximately 800 jobs at one Canadian and three Australian plants in 2006. Dana will record aggregate pre-tax charges of approximately $28 million in the fourth quarter of 2005 for the costs of employee separation in connection with these workforce reductions. Additional pre-tax charges approximating $10 million for employee separation and other costs are expected in 2006 or early 2007 as the workforce reductions are completed.
By December 2006, approximately 500 jobs will be eliminated at Dana's Structural Products plant in Thorold, Ont. This reduction results from the expiration of a supply agreement for truck frames. With the remaining work force of 180 people, this plant will continue to serve as a stamping operation supplying multiple Dana facilities.
By mid 2006, the company will also cut as many as 300 jobs from its Traction Products facilities in Salisbury, South Australia; Cheltenham, Victoria; and Yennora, New South Wales. This reduction is due to the expiration of a supply agreement for rear axle modules. With a combined, ongoing workforce of approximately 850 people at these Australian plants, Dana will continue to produce axles, suspension components, structures, and related modules for various vehicle manufacturers.
About Dana Corporation
Dana people design and manufacture products for every major vehicle producer in the world. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. A leading supplier of axle, driveshaft, engine, frame, chassis, and transmission technologies, Dana employs 46,000 people in 28 countries. Based in Toledo, Ohio, the company reported sales of $9.1 billion in 2004. Dana's Internet address is: http://www.dana.com/.
Statements in this release that are not entirely historical constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent Dana's expectations based on our current information and assumptions. However, forward-looking statements are inherently subject to risks and uncertainties, and actual charges related to the aforementioned work force reductions could differ materially from those anticipated. Dana does not undertake to update any forward-looking statements in this release.Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
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