TOLEDO, Ohio, Dec. 12 /PRNewswire-FirstCall/ -- Dana Corporation (OTC
Bulletin Board: DCNAQ) today announced four of eight facilities it plans to
close during the next two years. The actions will consolidate production
and are designed to balance capacity and take advantage of lower-cost
manufacturing locations. Dana announced preliminary plans to close eight
facilities last month.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA)
The four facilities announced for closure are Dana's Syracuse, Ind.,
and Cape Girardeau, Mo., Traction Products facilities, and the company's
Guelph and Thorold, Ontario, Canada, Structural Solutions plants.
Facility information is as follows:
* The Syracuse plant employs approximately 65 people and manufactures axle
components. The facility is expected to close by Sept. 30, 2007.
* The Cape Girardeau plant employs approximately 200 people manufacturing
axle components. The facility is expected to close by June 30, 2008.
* The Guelph operation employs approximately 25 people manufacturing front
and rear frame structures. The plant is expected to close by Feb. 28,
2007.
* The Thorold structures facility employs approximately 150 people
manufacturing stampings. The plant is expected to close by June 30,
2007.
Production from the Syracuse and Cape Girardeau facilities will be
moved to Dana operations in Mexico. Closure of the Guelph plant coincides
with the end of a customer program that comprised all production volume at
the facility. The majority of the production at the Thorold operation will
be moved to Dana's Elizabethtown, Ky., structures plant.
Dana Chairman and CEO Mike Burns said, "The decision to close any
facility is extremely difficult and regrettable. But to become competitive
and emerge from Chapter 11 as a viable company, it is absolutely critical
that we further consolidate work across our facilities to reduce
overcapacity and high operating costs."
Mr. Burns said that four additional facility closures are expected to
be finalized in 2007.
Dana expects to incur charges of approximately $26 million before tax
during the fourth quarter of 2006 and additional aggregate charges of
approximately $19 million in 2007-2009 for total charges of $45 million
before tax, in connection with the plant closures announced today.
About Dana Corporation
Dana is a leading supplier of drivetrain, chassis, structural, and
engine technologies. Dana people design and manufacture products for every
major vehicle and engine producer in the world. Based in Toledo, Ohio, with
operations throughout the world, Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually. The company's
continuing operations reported sales of $8.6 billion in 2005. Dana's
Internet address is: 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 closing dates for
Dana's Syracuse, Cape Girardeau, Guelph, and Thorold facilities and the
anticipated restructuring charges, as well as statements about future
closing announcements, 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. The actual closing dates and the amount and timing of
the restructuring charges relating to these facilities could differ from
current expectations depending upon Dana's ability to relocate the work
from these facilities in accordance with presently contemplated schedules.
Future closing announcements will depend upon customer considerations and
other factors under evaluation by Dana. 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/
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
http://www.prnewswire.com/comp/226839.html/
CONTACT:
Chuck Hartlage of Dana Corporation,
+1-419-535-5401, or chuck.hartlage@dana.com
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