Dana (NYSE:DCN)
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Dana Corporation Announces Intention to Divest Aftermarket Group
TOLEDO, Ohio, December 3 /PRNewswire/ -- - Company to Focus on Supporting
Global Original Equipment Customers
In a move to sharpen Dana Corporation's (NYSE: DCN) focus on the
original equipment marketplace, its Board of Directors announced today that
it intends to divest the company's Automotive Aftermarket Group. The Board
stated that the key benefit of this action is the enhanced strategic focus
it will bring to the company.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA)
Commenting on the announcement, Dana's Acting President and Chief
Operating Officer Bill Carroll said, "This move will enable us to leverage
our historic strengths in product and process technology to the benefit of
our OE customers - and ultimately, our shareholders."
Dana's Automotive Aftermarket Group produces and markets a broad line
of replacement products, including Raybestos(R) brakes, Wix(R) filters, and
a variety of under-vehicle components. The group, which employs more than
15,000 people worldwide, reported sales of approximately US$2.2 billion in
2002. The proposed divestiture does not involve Dana's Clevite
distribution and marketing activities based in Ann Arbor, Mich., or its
related operations in Churubusco, Ind.; Collierville, Tenn.; and Olive
Branch, Miss.
"As the largest manufacturer of replacement parts and components in the
aftermarket sector, our Automotive Aftermarket Group features some of the
world's leading under-hood and under-vehicle brands," Mr. Carroll added. "
This business has been made even stronger by our restructuring efforts over
the past two years, which have included a renewed focus on our customers
and have enhanced our efficiency, quality, and service. Ultimately, we
believe the Aftermarket Group's future opportunities will be optimised
under new ownership that is principally dedicated to the automotive
aftermarket.
"At the same time, we believe Dana will be best served as we dedicate
our resources to providing innovative systems solutions to the light
vehicle, commercial vehicle, and off-highway markets," he said.
Mr. Carroll said that possible uses of proceeds from a sale include
reinvestment in the company's core businesses; the further reduction of
Dana's debt, which would likely accelerate the company's return to
investment-grade status; and a contribution to the company's pension plans.
"We believe this action will significantly enhance Dana's strategic and
financial flexibility, while adding value for our shareholders," Mr.
Carroll said.
Dana said it is targeting completion of the divestiture in 2004.
Credit Suisse First Boston and Goldman, Sachs & Co. have been retained by
Dana to assist in the sale process.
Statements made in this release indicating Dana management's intentions
, beliefs, expectations or predictions for the future are forward-looking
statements. These statements are only predictions and may differ
materially from actual or future events or results. Such forward-looking
statements are not guarantees of future performance and may involve known
and unknown risks, uncertainties and other factors that could cause actual
results to differ materially from those expressed or implied. Such risks
and uncertainties include the success and timing of the contemplated
divestiture of the Automotive Aftermarket Group and other factors discussed
from time to time in Dana's filings with the Securities and Exchange
Commission.
Dana is a global leader in the design, engineering, and manufacture of
value-added products and systems for automotive, commercial, and off-
highway vehicle manufacturers and their related aftermarkets. The company
employs approximately 60,000 people worldwide. Founded in 1904 and based
in Toledo, Ohio, Dana operates hundreds of technology, manufacturing, and
customer service facilities in 30 countries. The company reported 2002
sales of US$9.5 billion.
Web site: http://www.dana.com
DATASOURCE: PR Newswire (New York)
Contact: Michelle Hards of Dana, +1-419-535-4636,
or email, michelle.hards@dana.com
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