Dana Corporation Closes Sale of European Fluid Products Hose and Tubing Operations to Orhan Holding, A.S.
Sale of North American Operations Expected to Close Later in Quarter
Jul 5, 2007
TOLEDO, Ohio, July 5 /PRNewswire/ -- Dana Corporation (OTC: DCNAQ) (BULLETIN BOARD: DCNAQ) has closed the previously announced sale of its European fluid products hose and tubing operations to Orhan Holding, A.S., receiving cash proceeds of $66.9 million, and expects to receive $18.1 million of cash proceeds upon closing the sale of the remainder of the hose and tubing business - in North America - to Orhan later in the third quarter.
Dana expects to record an after-tax gain of approximately $34 million in the third quarter of 2007 in connection with the completion of the entire divestiture.
The assets sold to Orhan thus far include: * A facility in Birmingham, United Kingdom; * Stock in three companies in Vitry, France; Dolny Kubin, Slovakia; and Barcelona, Spain; * Interests in three joint ventures with Orhan, including one operation in France and two in Turkey; and * Intellectual property relating to the global hose and tubing business.
The remaining fluid products hose and tubing assets are located in Archbold, Ohio; Paris, Tenn.; Rochester Hills, Mich., U.S.A.; and San Luis Potosi, Mexico.
The global fluid products hose and tubing business reported aggregate revenues of $266 million in 2006 and employs approximately 1,750 people. Its operations manufacture fuel lines; power-assisted steering products; heating, ventilation, and air conditioning (HVAC) under-body products; engine and transmission cooling lines; exhaust gas recirculation tubes; and airbag fill tubes.
Dana Chairman and CEO Mike Burns said, "The divestiture of our fluid products hose and tubing business is an important step in implementing Dana's reorganization initiatives and sharpening our focus on our core axle, driveshaft, structural, sealing, and thermal products businesses for the automotive, commercial vehicle, and off-highway markets."
About Dana Corporation
Dana is a world leader in the supply of axles; driveshafts; and structural, sealing, and thermal management products; as well as genuine service parts. The company's customer base includes virtually every major vehicle and engine manufacturer in the global automotive, commercial vehicle, and off-highway markets, which collectively produce more than 65 million vehicles annually. Based in Toledo, Ohio, the company's continuing operations employ approximately 35,000 people in 28 countries and reported 2006 sales of $8.5 billion, with more than half of this revenue derived from outside the United States. For more information, please visit: http://www.dana.com/.
Dana and certain of its U.S. subsidiaries are operating under Chapter 11 of the U.S. Bankruptcy Code as debtors in possession. Information about the bankruptcy proceedings can be found at: http://www.dana.com/reorganization. While Dana continues its reorganization under Chapter 11, investments in its securities are highly speculative. Although shares of Dana common stock continue to trade on the OTC Bulletin Board (OTCBB) under the symbol "DCNAQ," the trading prices of the shares may have little or no relationship to the actual recovery, if any, by the holders under any eventual court-approved reorganization plan. The opportunity for any recovery by holders of Dana common stock under such reorganization plan is uncertain and shares of Dana common stock may be cancelled without any compensation pursuant to such plan.
Statements in this release regarding the anticipated gain on the sale of Dana's fluid power hose and tubing assets and the anticipated closing and proceeds of the sale of the remaining assets in North America later in the quarter constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent Dana's expectations based on its current information and assumptions. Forward-looking statements are inherently subject to risks and uncertainties. There can be no assurance that the actual gain will not differ from what is anticipated or that the deferred sale will be completed as contemplated. Dana does not undertake to update any forward-looking statements in this release.
SOURCE: Dana Corporation
CONTACT: Chuck Hartlage of Dana Corporation, +1-419-535-4728,
Web site: http://www.dana.com/
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