Dana Holding Corporation (ticker: DAN, exchange: New York Stock Exchange (.N))
News Release -
Dana Corporation Announces Outsourcing of Grey Iron Castings
Muskegon, Michigan, Foundry to Close
TOLEDO, Ohio, Dec. 22 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) today announced it has signed a long-term agreement with Federal-
Mogul Corporation (OTC Bulletin Board: FDMLQ) to supply Dana with grey iron
castings from its western Michigan facility. Grey iron castings are used in
the manufacture of piston rings.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
Consequently, Dana will close its Muskegon, Mich., foundry operations.
Production is expected to end in the third quarter of 2005, eliminating
approximately 240 jobs. This action will result in an after-tax charge of
approximately $12 million, of which $11 million will be recorded in the fourth
quarter of 2004.
"This decision was necessary due to the excess capacity for grey iron
piston ring castings," said Mike Laisure, president of Dana's Automotive
Systems Group. "Our foundry is severely underutilized and no longer a viable
operation. This action will strengthen our overall competitiveness.
"Affected Dana employees will receive outplacement training and separation
benefits. We will do everything possible to support our people in their
search for new employment," he added.
Dana Corporation is a global leader in the design, engineering, and
manufacture of value-added products and systems for automotive, commercial,
and off-highway vehicles. Delivering on a century of innovation, the company
employs approximately 45,000 people worldwide dedicated to advancing the
science of mobility. Founded in 1904 and based in Toledo, Ohio, Dana operates
technology, manufacturing, and customer-service facilities in 30 countries.
Sales from continuing operations totaled $7.9 billion in 2003.
Certain statements contained in this release constitute "forward-looking"
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements represent Dana's expectations based on our current
information and assumptions. Forward-looking statements are inherently
subject to risks and uncertainties. Dana's actual results could differ
materially from those that are anticipated or projected due to a number of
factors. These factors include our ability to complete the outsourcing as
contemplated, and other factors set out in our public filings with the
Securities and Exchange Commission. Dana does not undertake to update any
forward-looking statements in this release.
SOURCE Dana Corporation
/CONTACT: Gary J. Corrigan of Dana, +1-419-535-4813, or
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/Web site: http://www.dana.com /
CO: Dana Corporation; Federal-Mogul Corporation
ST: Ohio, Michigan
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4658 12/22/2004 09:06 EST http://www.prnewswire.com