Dana Corporation Intends to Sell its Marion, Ohio,
Forging Facility TOLEDO, Ohio (PROTEXT)
Dana Corporation (NYSE: DCN) today announced its intention to sell its Marion, Ohio, forging facility, which was acquired in Dana's 1998 acquisition of Eaton Corporation's heavy axle and brake business. The 258,000-square-foot facility, which had sales of more than $50 million in 1998, produces fully machined axle shafts and a variety of forgings, such as ring gears and helical gears, for heavy-duty truck applications. The facility employs approximately 300 people. Rick Clayton, president of Dana's Heavy Truck Group, said, "Dana has realized tremendous synergies since it purchased the Eaton heavy axle and brake businesses. As a result, the forging operation no longer fits within our manufacturing strategies. The decision to sell this important business is not a reflection on our people there or on the business opportunities for that plant in the future." 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. "These are difficult decisions, but another clear example of Dana's resolve to divest operations that are either non-strategic or under-performing -- which is one of the tactics of our Five- Point Plan," said Joe Magliochetti, Dana president and CEO. "In fact, in the last two months, we have announced our intention to sell business with sales of more than $700 million." Dana's Five-Point Plan is a tactical link to the company's overall strategic plan, and includes the following five tactics: * 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 CIBC World Markets 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, (in the USA) 419-535-4813 Company News On-Call: http://www.prnewswire.com/comp/226839.html or fax, (in the USA) 800-758-5804, ext. 226839 Web site: http://www.dana.com
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