Dana Corporation Intends to Sell Global Hydraulic
Operations Toledo, Ohio (PROTEXT)
Dana Corporation (NYSE: DCN) today announced its intention to sell its worldwide Gresen hydraulic operations. Gresen had sales of approximately $135 million in 1998 and employs nearly 1,000 people at facilities in Greenville, S.C.; Minneapolis; Sarasota, Fla.; and Cachoeirinha, R.S., Brazil. Gresen manufactures a wide range of hydraulic pumps, motors, cylinders, control valves, filters, and electronic controls for auxiliary equipment for on- and off-highway vehicles. It also has significant systems capabilities. Nick Cole, president of Dana's Off-Highway Systems Group, said, "This decision was not easy. Gresen is a solid performer, but as Dana focuses more on its core businesses, auxiliary power is becoming less strategic for us. Gresen has always had excellent products and exceptional people. This decision should give them greater potential with a company that considers these products to be core." According to Cole, the proposed sale is consistent with Dana's previously announced Five-Point Plan for continued growth and increased profitability, and it comes in response to interest from potential buyers. "In the last two months, Dana has announced its intention to sell non-strategic or under-performing operations with sales totaling some $665 million. The decisions, while difficult, are part of Dana's Five-Point Plan for continued growth and increased profitability," said Joe Magliochetti, Dana president and CEO. Dana unveiled its Five-Point Plan in April. The plan, a tactical link to the company's overall strategic plan, includes the following five elements: * Grow while focusing on returns and maintaining financial discipline; * Seek strategic, bolt-on acquisitions at reasonable valuations; * Divest non-strategic and non-performing operations; * Repurchase stock as the company generates cash; and * Complete integration efforts and realize synergy savings. Dana has retained the investment-banking firm of Morgan Stanley Dean Witter to assist in the transaction. 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 www.dana.com . ots Original Text Service: Dana Corporation Internet: http://www.newsaktuell.de Contact: Gary Corrigan of Dana Corporation, (USA) 419-535-4813 Company News On-Call: http://www.prnewswire.com/comp/226839.html or fax, (USA) 800-758- 5804, ext. 226839 Web site: http://www.dana.com
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