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Dana Corporation Comments On Earnings Outlook

18 September 2000

Dana Corporation Comments On Earnings Outlook

    TOLEDO, Ohio, Sept. 18 Dana Corporation
announced today that it anticipates third-quarter operating earnings will be
within the range of 41 to 46 cents per share, which is below the current
consensus estimate of 86 cents per share.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    Among the external factors impacting the results are a number of broad
issues that are affecting the industry as a whole.  These include unexpected
reductions in production schedules for light truck and sport utility vehicles
manufactured by Ford and other of Dana's largest customers, a declining U.S.
heavy truck market, softness in the U.S. and European aftermarket, and the
continued weakening of the Euro.  Also, results were impacted by issues
related to software implementation and integration associated with the
consolidation of the Automotive Aftermarket Group's Engine Controls
warehouses.
    "This has been a year of continuous challenges at a time when we are in
the midst of repositioning the company to focus on long-term, profitable
growth in our foundation businesses," said Dana Chairman and CEO Joe
Magliochetti.
    "We have taken a number of decisive actions to reposition our business for
greater stability.  Our new Automotive Aftermarket leadership team is
aggressively working to bring our state-of-the-art warehouse distribution
system on-line," he said.  "To respond to lower volumes, we have reduced the
workforce in those business units most affected.  This is over and above the
recently announced closure of our Structural Products facility in Reading,
Pennsylvania.
    "These conditions have resulted in lower-than-anticipated earnings this
quarter, and we remain guarded in our outlook for the fourth quarter.
However, we continue to manage for cash flow, which remains in-line with our
expectations for the year," Mr. Magliochetti added.  "In combination with new
business gains this year, this bodes well for the longer term."
    Dana Chief Financial Officer Bob Richter said, "In addition to our efforts
to improve short-term profitability, we remain focused on our strategic
direction and will pursue even more aggressively the divestiture of non-
strategic operations.  We expect to use divestiture proceeds to further invest
in the company's foundation businesses and to repurchase stock."