Dana Venezuelan Affiliate Reports Significant Loss
Dec 15, 2000
TOLEDO, Ohio, Dec. 15 /PRNewswire/ -- Dana Corporation (NYSE: DCN) reported today that C.A. Danaven, a Venezuelan affiliate in which it holds a 49-percent interest, will report a significant loss for the fiscal year 2000. (Photo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA ) According to officials of Danaven's majority shareholder, Siderurgica Venezolana "Sivensa," S.A. (OTC: SDNZY), it became apparent during the year- end audit process that there were significant irregularities in the Danaven accounts. Dana is currently working with Sivensa and Danaven's independent auditors to determine the causes of the loss. Dana will record its share of the loss, approximately $27 million, in the fourth quarter. "The news of this loss and its magnitude were a surprise to both partners," said Gus Franklin, President - Dana International. "For more than a decade, Danaven has been one of Dana's most successful operations in South America. Dana is working closely with its partner toward resolution of these issues. We have already made significant changes in the management team and are investigating the source of the problems and taking appropriate corrective actions." Dana established its presence in Venezuela during the late 1960s. Sivensa became a shareholder in Danaven in 1972 and majority owner in 1976. Caracas- based Sivensa manufactures semi-finished and finished steel products for the rolling and construction industries respectively, iron-ore briquettes for the steel sector, automotive products for the original equipment and replacement markets, and wire for industrial and agricultural use. Headquartered in Valencia, Venezuela, Danaven manufactures and exports a variety of automotive products, including axles, frames, and foundry components. Dana Corporation is one of the world's largest suppliers to vehicle manufacturers and their related aftermarkets. Founded in 1904 and based in Toledo, Ohio, the company operates approximately 320 major facilities in 32 countries and employs more than 80,000 people. The company reported sales of $13.2 billion in 1999. Dana's Internet address is http://www.dana.com .
SOURCE Dana Corporation
Web Site: http://www.dana.com
Photo Notes: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
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