Sale of North American Operations Expected to Close Later in Quarter
TOLEDO, Ohio, July 5 /PRNewswire/ -- Dana Corporation (OTC 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.
Forward-Looking Statements
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
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Related links:
http://www.dana.com/
http://www.prnewswire.com/comp/226839.html/
CONTACT:
Chuck Hartlage of Dana Corporation,
+1-419-535-4728, chuck.hartlage@dana.com
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