Dana Corporation Completes Sale of Coupled Products Business
Sep 24, 2007
TOLEDO, Ohio, Sept. 24 /PRNewswire-FirstCall/ -- Dana Corporation (OTC: DCNAQ) (BULLETIN BOARD: DCNAQ) announced today that it has completed the sale of its North American coupled products business to Coupled Products LLC, a wholly owned subsidiary of Wanxiang (USA) Holdings Corporation. Dana expects to record an after-tax loss of approximately $44 million in the third quarter of 2007 in connection with this transaction.
The sale substantially concludes the overall divestiture of Dana's fluid products business. Last month, the company closed the sale of its North American fluid products hose and tubing operations to Orhan Holding, A.S. Dana previously sold its European fluid products hose and tubing operations to Orhan in July, 2007.
"The completion of this divestiture marks another important step in Dana's efforts to concentrate our resources on the core products and competencies that are the foundation for our future growth," said Dana Chairman and CEO Mike Burns. "We wish the people of the coupled products business the very best as they move forward with Wanxiang."
The coupled products plants and/or assets involved in the Wanxiang transaction are located in San Luis Potosi, Mexico; and Columbia City, Ind.; Pensacola, Fla.; Rochester Hills, Mich.; and Upper Sandusky and Wharton, Ohio, U.S.A. The coupled products operations manufacture power-assisted steering products; heating, ventilation, and air conditioning (HVAC) under-engine products; and brake products. The operations employ approximately 2,050 people and reported consolidated revenues of approximately $200 million in 2006.
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 36,000 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 opportunity for any recovery by shareholders under a confirmed plan of reorganization is uncertain. If Dana's plan of reorganization that was filed with the bankruptcy court on August 31, 2007, is ultimately confirmed, Dana's common shares will be cancelled and shareholders with allowed interests will be entitled to a pro rata share of the assets, if any, that remain in a reserve established for disputed unsecured claims after the holders of certain allowed claims have been paid in full, with interest. There is no assurance that this plan of reorganization will be adopted or, if it is, that there will be any residual assets left for the benefit of former holders of Dana common stock in the reserve established for disputed unsecured claims.Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
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SOURCE: Dana Corporation
CONTACT: Chuck Hartlage of Dana Corporation, +1-419-535-4728
Web site: http://www.dana.com/
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