Dana Continues Strategic Focus on Core Businesses With Sale of Spring Manufacturing Operation
14 July 1997
Dana Continues Strategic Focus on Core Businesses With Sale of Spring Manufacturing Operation
TOLEDO, Ohio, July 14 -- In another move to further focus on
its core business units, Dana Corporation announced today that it
has signed an agreement to sell the manufacturing assets of its leaf spring
manufacturing operation at Berwick, Pa., to Hendrickson International
Corporation, of Woodridge, Ill.
As a result, the Berwick facility, which makes springs for the U.S. heavy
truck and trailer market, will be closed later this year. The plant currently
employs 96 people, who will be assisted in finding other employment. The
estimated after-tax cost of closing, $5.3 million (five cents per share), was
charged to earnings during the second quarter.
"This decision is consistent with Dana's strategy of focusing on core
businesses in order to meet or exceed the company's financial objectives by
1/1/99," said Dana Chairman Southwood J. Morcott.
Dana's core businesses are axles, driveshafts, structural components
(frames), sealing products, filtration products, engine products, industrial
products, and leasing services.
John S. Simpson, chief financial officer, said to qualify as core, a
business must rank first or second in market share, must be global, must
exceed $500 million in annual sales, and must meet or exceed Dana's financial
goals.
Dana President Joseph M. Magliochetti said, "This strategic move for Dana
is important not only because it allows us to further focus on core
competencies, but also because our current customers can look to an on-going,
reliable supply of leaf springs from an experienced organization."
The sale is the latest in a series of strategic moves in 1997 that has
included Dana's planned acquisition of Eaton Corporation's global axle and
brake operations, as well as the purchase of Clark-Hurth Components and the
cylinder liner and piston ring operations of SPX Corporation. Dana also
divested its European warehouse distribution facilities and has announced the
sale of its global clutch and hydraulic cylinder operations.
Hendrickson is a subsidiary of the privately held Boler Co., of Itasca,
Ill. It specializes in the manufacture of heavy truck and tractor trailer
lift and fixed-air suspensions.
Dana Corporation is a global leader in the engineering, manufacture, and
distribution of products and systems for the vehicular, industrial, and off-
highway markets. Its leasing services operation was a recipient of the 1996
Malcolm Baldrige National Quality Award. Founded in 1904 and based in Toledo,
Ohio, Dana operates facilities in 30 countries with more than 48,000 people.
Its 1996 sales were $7.7 billion. It has more than 40 product research and
development centers worldwide. The Internet address for Dana's home page is
http://www.dana.com.
SOURCE Dana Corporation