-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Dtkjinjtuh59yf6OxFhWJtjushBBdepKdkTYwjyZC3cbe+TawLQd1zDN2W8/oh02 0WllneWgA+I5p+xOUH9kaQ== 0000950152-01-503251.txt : 20010718 0000950152-01-503251.hdr.sgml : 20010718 ACCESSION NUMBER: 0000950152-01-503251 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010717 ITEM INFORMATION: FILED AS OF DATE: 20010717 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DANA CORP CENTRAL INDEX KEY: 0000026780 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 344361040 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-01063 FILM NUMBER: 1683332 BUSINESS ADDRESS: STREET 1: 4500 DORR ST CITY: TOLEDO STATE: OH ZIP: 43615 BUSINESS PHONE: 4195354500 MAIL ADDRESS: STREET 1: PO BOX 1000 CITY: TOLEDO STATE: OH ZIP: 43697 8-K 1 l89417ae8-k.txt DANA CORPORATION FORM 8-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SEC. 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 17, 2001 ---------------- Dana Corporation ----------------------------------------------------- (Exact name of registrant as specified in its charter) Virginia 1-1063 34-4361040 - ----------------- ------------------------ ------------------ (State or other (Commission File Number) (IRS Employer jurisdiction of Identification No.) incorporation) 4500 Dorr Street, Toledo, Ohio 43615 ------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (419) 535-4500 -------------------- 1 2 ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE. On July 17, 2001, Dana Corporation issued the press releases which are attached as Exhibits A and B to PR News Wire, for immediate release to national newspapers and news wire services. 2 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dana Corporation ---------------- (Registrant) Date: July 17, 2001 By: /s/ Michael L. DeBacker ----------------------------- Michael L. DeBacker Vice President, General Counsel and Secretary 3 4 NEWS RELEASE EXHIBIT A [DANA CORP. LOGO] FOR IMMEDIATE RELEASE CONTACT: GARY CORRIGAN (419) 535-4813 gary.corrigan@dana.com DANA CORPORATION ANNOUNCES SECOND-QUARTER RESULTS TOLEDO, OHIO, JULY 17, 2001 - DANA CORPORATION (NYSE: DCN) TODAY ANNOUNCED THAT ITS SALES FOR THE SECOND QUARTER OF 2001 WERE $2.8 BILLION, DOWN FROM $3.3 BILLION FOR THE SAME PERIOD LAST YEAR. NET INCOME, EXCLUDING NON-RECURRING ITEMS, TOTALED $26 MILLION, OR 17 CENTS PER SHARE FOR THE QUARTER, COMPARED WITH $154 MILLION, OR $1.01 PER SHARE, DURING THE SECOND QUARTER OF 2000. NET INCOME FOR THE QUARTER, INCLUDING NON-RECURRING ITEMS, TOTALED $14 MILLION, OR 10 CENTS PER SHARE. THIS COMPARES WITH NET INCOME OF $145 MILLION, OR 95 CENTS PER SHARE, IN THE SECOND QUARTER OF 2000. DANA'S SIX-MONTH CONSOLIDATED SALES WERE $5.5 BILLION, DOWN FROM $6.8 BILLION OVER THE SAME PERIOD LAST YEAR. NET INCOME, EXCLUDING NON-RECURRING ITEMS OVER THE PERIOD, WAS $27 MILLION, OR 18 CENTS PER SHARE, COMPARED WITH $315 MILLION, OR $2.01 PER SHARE, IN 2000. AFTER NET, NON-RECURRING CHARGES, THE COMPANY INCURRED A NET LOSS OF $13 MILLION, OR 8 CENTS PER SHARE, DURING THE FIRST SIX MONTHS OF 2001. THIS COMPARES WITH NET INCOME OF $390 MILLION, OR $2.50 PER SHARE IN 2000, WHICH INCLUDED NET, NON-RECURRING INCOME OF $75 MILLION, OR 49 CENTS PER SHARE. "THE SECOND QUARTER WAS ANOTHER CHALLENGING PERIOD FOR OUR INDUSTRY, WHICH IS WELL BELOW LAST YEAR'S STRONG PACE," SAID DANA CHAIRMAN AND CEO JOE MAGLIOCHETTI. "NEVERTHELESS, WE WERE PLEASED TO SEE THE IMPROVEMENT IN OUR RESULTS FROM THE FIRST QUARTER TO SECOND QUARTER IN A NUMBER OF AREAS. "DESPITE ERRATIC LIGHT VEHICLE PRODUCTION SCHEDULES, OUR LARGEST BUSINESS UNIT, THE AUTOMOTIVE SYSTEMS GROUP, SHOWED A MARKED IMPROVEMENT IN PROFITABILITY REFLECTING THE SUCCESS OF OUR COST REDUCTION ACTIONS AND WORKFORCE REDUCTIONS," HE SAID. "SIMILARLY, OUR COMMERCIAL VEHICLE SYSTEMS UNIT GREW ITS PROFITS, DESPITE LOWER SALES TO THE HEAVY TRUCK MARKET," HE ADDED. "AND PERHAPS MOST ENCOURAGING WAS THE IMPROVED PERFORMANCE OF OUR AUTOMOTIVE AFTERMARKET GROUP, WHICH IS SIGNIFICANT CONSIDERING THE NUMBER OF CHALLENGES IT HAS FACED OVER THE PAST YEAR. "LOOKING AHEAD TO THE SECOND HALF OF 2001, WE EXPECT TO CONTINUE BENEFITING FROM OUR RIGHTSIZING EFFORTS. HOWEVER, WE'RE LESS OPTIMISTIC TODAY ABOUT THE RATE OF RECOVERY IN THE NORTH AMERICAN OE MARKETS THAN WE WERE AT THE OUTSET OF THE YEAR," MR. MAGLIOCHETTI SAID. "CERTAIN NEW VEHICLE INVENTORY LEVELS REMAIN HIGH AND SEVERAL MAJOR CUSTOMERS HAVE ANNOUNCED EXTENDED SUMMER PRODUCTION SHUTDOWNS. THIS WILL HAVE A CONTINUING IMPACT ON THE INDUSTRY DURING THE THIRD QUARTER, BUT WE ARE ENCOURAGED BY THE PRESENT OUTLOOK FOR THE FOURTH QUARTER." (MORE) 5 2 DANA CHIEF FINANCIAL OFFICER BOB RICHTER SAID, "IN ADDITION TO OUR COST REDUCTION MEASURES, WE CONTINUED OUR FOCUS ON MANAGING FOR CASH, AS EVIDENCED BY FURTHER REDUCTIONS IN INVENTORY LEVELS AND CONTINUED PROGRESS IN OUR DIVESTITURE PROGRAM." DURING THE SECOND QUARTER, DANA DIVESTED THREE OPERATIONS RESULTING IN A ONE-TIME, NET AFTER-TAX CHARGE OF $8 MILLION, OR 6 CENTS PER SHARE. THESE OPERATIONS INCLUDE THE COMPANY'S MARION, OHIO, FORGING FACILITY; AND THE ASSETS OF ITS DALLAS, TEXAS, AND WASHINGTON, MO., FLUID SYSTEMS OPERATIONS. YESTERDAY, DANA COMPLETED THE SALE OF ITS CHELSEA POWER TAKE-OFF BUSINESS TO PARKER HANNIFIN CORPORATION (NYSE: PH). AS A RESULT OF THE SALE, DANA WILL RECORD A ONE-TIME, AFTER-TAX GAIN OF APPROXIMATELY $20 MILLION, OR 13 CENTS PER SHARE, IN THE THIRD QUARTER OF 2001. "AS WE'VE SAID PREVIOUSLY, WE WILL USE PROCEEDS FROM DIVESTITURES AND OTHER POSITIVE CASH FLOW TO REDUCE DEBT," MR. RICHTER SAID. "HOWEVER, WE WILL ALSO EXPLORE WAYS TO BETTER BALANCE THE MATURITY OF OUR DEBT PORTFOLIO AND REDUCE OUR EXPOSURE TO FLUCTUATIONS IN THE EURO-DOLLAR EXCHANGE RATE." DANA WILL HOST A CONFERENCE CALL AT 3 P.M. (EDT) TODAY TO DISCUSS ITS QUARTERLY RESULTS. THE CALL MAY BE ACCESSED VIA DANA'S WEBSITE (WWW.DANA.COM), WHERE IT WILL BE ACCOMPANIED BY A SLIDE PRESENTATION, OR BY DIALING (800) 275-3210. PLEASE DIAL INTO THE CONFERENCE 15 MINUTES PRIOR TO THE CALL. A RECORDING OF THIS CONFERENCE CALL WILL BE AVAILABLE AFTER 6 P.M. (EDT) TODAY. TO ACCESS THIS RECORDING, PLEASE DIAL (800) 537-8823. DANA CORPORATION IS ONE OF THE WORLD'S LARGEST SUPPLIERS OF COMPONENTS, MODULES AND COMPLETE SYSTEMS TO GLOBAL VEHICLE MANUFACTURERS AND THEIR RELATED AFTERMARKETS. FOUNDED IN 1904 AND BASED IN TOLEDO, OHIO, THE COMPANY OPERATES SOME 300 MAJOR FACILITIES IN 35 COUNTRIES AND EMPLOYS APPROXIMATELY 75,000 PEOPLE. THE COMPANY REPORTED SALES OF $12.3 BILLION IN 2000. DANA'S INTERNET ADDRESS IS WWW.DANA.COM. Certain statements contained herein constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve assumptions, uncertainties, and risks, and Dana's actual future results, performance, or achievements may differ materially from those expressed or implied in these statements. Among the factors that could affect Dana's actual results are the ability of the company's vehicular customers to achieve projected sales and production levels, the cyclical nature of the vehicular industry, international economic conditions, the closing of planned divestitures as contemplated, and the success of the company's cost reduction and cash management programs. Additional factors are detailed in Dana's public filings with the Securities and Exchange Commission. Dana does not undertake to update any forward-looking statements contained herein. (MORE) 6 3 (IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
UNAUDITED THREE MONTHS ENDED JUNE 30 ----------------------------------- 2000 2001 --------------- ---------------- SALES $ 3,296 $ 2,768 NET INCOME, EXCLUDING NON-RECURRING ITEMS 154 26 NET INCOME, INCLUDING NON-RECURRING ITEMS 145 14 NET INCOME PER COMMON SHARE, EXCLUDING NON-RECURRING ITEMS DILUTED 1.01 0.17 NET INCOME PER COMMON SHARE, INCLUDING NON-RECURRING ITEMS BASIC 0.95 0.10 DILUTED 0.95 0.10 AVERAGE SHARES OUTSTANDING - FOR BASIC EPS 152 148 FOR DILUTED EPS 153 149 UNAUDITED ----------------------------------- SIX MONTHS ENDED JUNE 30 ----------------------------------- 2000 2001 --------------- ---------------- SALES $ 6,764 $ 5,499 NET INCOME, EXCLUDING NON-RECURRING ITEMS 315 27 NET INCOME (LOSS), INCLUDING NON-RECURRING ITEMS 390 (13) NET INCOME PER COMMON SHARE, EXCLUDING NON-RECURRING ITEMS DILUTED 2.01 0.18 NET INCOME (LOSS) PER COMMON SHARE, INCLUDING NON-RECURRING ITEMS BASIC 2.51 (0.08) DILUTED 2.50 (0.08) AVERAGE SHARES OUTSTANDING - FOR BASIC EPS 155 148 FOR DILUTED EPS 156 149
(MORE) 7 4 DANA CORPORATION STATEMENT OF INCOME (UNAUDITED) JUNE 30, 2001 (IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED JUNE 30 ---------------------------------- 2000 2001 --------------- --------------- NET SALES $ 3,296 $ 2,768 REVENUE FROM LEASE FINANCING AND OTHER INCOME 42 29 --------------- --------------- 3,338 2,797 --------------- --------------- COSTS AND EXPENSES COST OF SALES 2,778 2,414 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 272 271 RESTRUCTURING AND INTEGRATION CHARGES 15 4 INTEREST EXPENSE 78 79 --------------- --------------- 3,143 2,768 --------------- --------------- INCOME BEFORE INCOME TAXES 195 29 ESTIMATED TAXES ON INCOME (68) (16) MINORITY INTEREST (4) (4) EQUITY IN EARNINGS OF AFFILIATES 22 5 --------------- --------------- NET INCOME $ 145 $ 14 =============== =============== NET INCOME PER COMMON SHARE - BASIC $ 0.95 $ 0.10 =============== =============== DILUTED $ 0.95 $ 0.10 =============== =============== AVERAGE SHARES OUTSTANDING - FOR BASIC EPS 152 148 FOR DILUTED EPS 153 149
(MORE) 8 5 DANA CORPORATION STATEMENT OF INCOME (UNAUDITED) JUNE 30, 2001 (IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
SIX MONTHS ENDED JUNE 30 ---------------------------------- 2000 2001 --------------- --------------- NET SALES $ 6,764 $ 5,499 REVENUE FROM LEASE FINANCING AND OTHER INCOME 258 51 --------------- --------------- 7,022 5,550 --------------- --------------- COSTS AND EXPENSES COST OF SALES 5,679 4,857 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 570 533 RESTRUCTURING AND INTEGRATION CHARGES 34 26 INTEREST EXPENSE 157 163 --------------- --------------- 6,440 5,579 --------------- --------------- INCOME (LOSS) BEFORE INCOME TAXES 582 (29) ESTIMATED TAXES ON INCOME (216) 7 MINORITY INTEREST (9) (5) EQUITY IN EARNINGS OF AFFILIATES 33 14 --------------- --------------- NET INCOME (LOSS) $ 390 $ (13) =============== =============== NET INCOME (LOSS) PER COMMON SHARE - BASIC $ 2.51 $ (0.08) =============== =============== DILUTED $ 2.50 $ (0.08) =============== =============== AVERAGE SHARES OUTSTANDING - FOR BASIC EPS 155 148 FOR DILUTED EPS 156 149
(MORE) 9 6 DANA CORPORATION CONDENSED BALANCE SHEET (UNAUDITED) JUNE 30, 2001 (IN MILLIONS)
DECEMBER 31 JUNE 30 ASSETS 2000 2001 - ------- ----------------- ----------------- CURRENT ASSETS CASH AND MARKETABLE SECURITIES $ 179 $ 153 ACCOUNTS RECEIVABLE TRADE 1,548 1,705 OTHER 318 416 INVENTORIES 1,564 1,375 OTHER CURRENT ASSETS 714 576 --------------- --------------- TOTAL CURRENT ASSETS 4,323 4,225 --------------- --------------- PROPERTY, PLANT AND EQUIPMENT, NET 3,509 3,470 INVESTMENT IN LEASES 1,037 1,083 INVESTMENTS AND OTHER ASSETS 2,367 2,260 --------------- --------------- TOTAL ASSETS $ 11,236 $ 11,038 =============== =============== LIABILITIES AND SHAREHOLDERS' EQUITY ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES $ 2,386 $ 2,453 NOTES PAYABLE 1,945 2,021 --------------- --------------- TOTAL CURRENT LIABILITIES 4,331 4,474 --------------- --------------- LONG-TERM DEBT 2,649 2,467 DEFERRED EMPLOYEE BENEFITS AND OTHER NONCURRENT LIABILITIES 1,507 1,603 MINORITY INTEREST 121 114 SHAREHOLDERS' EQUITY 2,628 2,380 --------------- --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 11,236 $ 11,038 =============== ===============
(MORE) 10 7 DANA CORPORATION CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) JUNE 30, 2001 (IN MILLIONS)
THREE MONTHS ENDED, JUNE 30 ---------------------------- 2000 2001 ---------- ---------- NET INCOME $ 145 $ 14 DEPRECIATION AND AMORTIZATION 128 135 LOSS ON DIVESTITURES 8 WORKING CAPITAL CHANGE 12 27 OTHER (59) 57 ---------- ---------- NET CASH FROM OPERATING ACTIVITIES 226 241 ---------- ---------- PURCHASES OF PROPERTY, PLANT AND EQUIPMENT (168) (114) PURCHASES OF ASSETS TO BE LEASED (59) (56) PAYMENTS RECEIVED ON LEASES 51 9 NET LOANS TO CUSTOMERS (100) 25 ACQUISITIONS (21) DIVESTITURES 11 OTHER 13 92 ---------- ---------- NET CASH FLOWS - INVESTING ACTIVITIES (263) (54) ---------- ---------- NET CHANGE IN SHORT-TERM DEBT 326 (58) PROCEEDS FROM LONG-TERM DEBT 11 1 PAYMENTS ON LONG-TERM DEBT (100) (81) DIVIDENDS PAID (48) (46) SHARES REPURCHASED (70) OTHER 1 ---------- ---------- NET CASH FLOWS - FINANCING ACTIVITIES 120 (184) ---------- ---------- NET CHANGE IN CASH AND CASH EQUIVALENTS 83 3 CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 104 150 ---------- ---------- CASH AND CASH EQUIVALENTS - END OF PERIOD $ 187 $ 153 ========== ==========
(MORE) 11 8 DANA CORPORATION CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) JUNE 30, 2001 (IN MILLIONS)
SIX MONTHS ENDED, JUNE 30 ---------------------------- 2000 2001 ---------- ---------- NET INCOME (LOSS) $ 390 $ (13) DEPRECIATION AND AMORTIZATION 260 271 LOSS (GAIN) ON DIVESTITURES (97) 20 WORKING CAPITAL CHANGE (126) (38) OTHER (96) 113 ---------- ---------- NET CASH FROM OPERATING ACTIVITIES 331 353 ---------- ---------- PURCHASES OF PROPERTY, PLANT AND EQUIPMENT (334) (238) PURCHASES OF ASSETS TO BE LEASED (71) (86) PAYMENTS RECEIVED ON LEASES 65 19 NET LOANS TO CUSTOMERS (106) 85 ACQUISITIONS (205) (21) DIVESTITURES 524 26 OTHER 44 112 ---------- ---------- NET CASH FLOWS - INVESTING ACTIVITIES (83) (103) ---------- ---------- NET CHANGE IN SHORT-TERM DEBT 563 38 PROCEEDS FROM LONG-TERM DEBT 11 44 PAYMENTS ON LONG-TERM DEBT (333) (267) DIVIDENDS PAID (96) (92) SHARES REPURCHASED (320) OTHER 3 1 ---------- ---------- NET CASH FLOWS - FINANCING ACTIVITIES (172) (276) ---------- ---------- NET CHANGE IN CASH AND CASH EQUIVALENTS 76 (26) CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 111 179 ---------- ---------- CASH AND CASH EQUIVALENTS - END OF PERIOD $ 187 $ 153 ========== ==========
(MORE) 12 9 DANA CORPORATION (INCLUDING DANA CREDIT CORPORATION ON AN EQUITY BASIS) STATEMENT OF INCOME (UNAUDITED) JUNE 30, 2001 (IN MILLIONS)
THREE MONTHS ENDED, JUNE 30 ---------------------------------- 2000 2001 --------------- --------------- NET SALES $ 3,296 $ 2,768 OTHER INCOME (EXPENSE) 6 (12) --------------- --------------- 3,302 2,756 --------------- --------------- COSTS AND EXPENSES COST OF SALES 2,794 2,429 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 249 245 RESTRUCTURING AND INTEGRATION CHARGES 15 4 INTEREST EXPENSE 52 49 --------------- --------------- 3,110 2,727 --------------- --------------- INCOME BEFORE INCOME TAXES 192 29 ESTIMATED TAXES ON INCOME (70) (17) MINORITY INTEREST (4) (3) EQUITY IN EARNINGS OF AFFILIATES 27 5 --------------- --------------- NET INCOME $ 145 $ 14 =============== ===============
(MORE) 13 10 DANA CORPORATION (INCLUDING DANA CREDIT CORPORATION ON AN EQUITY BASIS) STATEMENT OF INCOME (UNAUDITED) JUNE 30, 2001 (IN MILLIONS)
SIX MONTHS ENDED, JUNE 30 ---------------------------------- 2000 2001 --------------- --------------- NET SALES $ 6,764 $ 5,499 OTHER INCOME (EXPENSE) 181 (25) --------------- --------------- 6,945 5,474 --------------- --------------- COSTS AND EXPENSES COST OF SALES 5,710 4,890 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 524 482 RESTRUCTURING AND INTEGRATION CHARGES 34 26 INTEREST EXPENSE 108 104 --------------- --------------- 6,376 5,502 --------------- --------------- INCOME (LOSS) BEFORE INCOME TAXES 569 (28) ESTIMATED TAXES ON INCOME (217) 6 MINORITY INTEREST (8) (5) EQUITY IN EARNINGS OF AFFILIATES 46 14 --------------- --------------- NET INCOME (LOSS) $ 390 $ (13) =============== ===============
(MORE) 14 11 DANA CORPORATION (INCLUDING DANA CREDIT CORPORATION ON AN EQUITY BASIS) CONDENSED BALANCE SHEET (UNAUDITED) JUNE 30, 2001 (IN MILLIONS)
DECEMBER 31 JUNE 30 ASSETS 2000 2001 - ------- ---------------- --------------- CURRENT ASSETS CASH AND MARKETABLE SECURITIES $ 149 $ 146 ACCOUNTS RECEIVABLE TRADE 1,505 1,705 OTHER 318 362 INVENTORIES 1,564 1,375 OTHER CURRENT ASSETS 535 552 --------------- --------------- TOTAL CURRENT ASSETS 4,071 4,140 --------------- --------------- PROPERTY, PLANT AND EQUIPMENT, NET 3,069 3,039 INVESTMENTS AND OTHER ASSETS 2,026 1,933 --------------- --------------- TOTAL ASSETS $ 9,166 $ 9,112 =============== =============== LIABILITIES AND SHAREHOLDERS' EQUITY - ------------------------------------ ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES $ 2,383 $ 2,388 NOTES PAYABLE 1,307 1,542 --------------- --------------- TOTAL CURRENT LIABILITIES 3,690 3,930 --------------- --------------- LONG-TERM DEBT 1,574 1,428 DEFERRED EMPLOYEE BENEFITS AND OTHER NONCURRENT LIABILITIES 1,155 1,262 MINORITY INTEREST 119 112 SHAREHOLDERS' EQUITY 2,628 2,380 --------------- --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 9,166 $ 9,112 =============== ===============
(MORE) 15 12 DANA CORPORATION (INCLUDING DANA CREDIT CORPORATION ON AN EQUITY BASIS) CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) JUNE 30, 2001 (IN MILLIONS)
THREE MONTHS ENDED, JUNE 30 ---------------------------------- 2000 2001 --------------- --------------- NET INCOME $ 145 $ 14 DEPRECIATION AND AMORTIZATION 104 109 LOSS ON DIVESTITURES 8 WORKING CAPITAL CHANGE 21 19 OTHER (38) 20 --------------- --------------- NET CASH FROM OPERATING ACTIVITIES 232 170 --------------- --------------- PURCHASES OF PROPERTY, PLANT AND EQUIPMENT (121) (90) ACQUISITIONS (21) DIVESTITURES 11 OTHER 3 14 --------------- --------------- NET CASH FLOWS - INVESTING ACTIVITIES (118) (86) --------------- --------------- NET CHANGE IN SHORT-TERM DEBT 133 (7) PROCEEDS FROM LONG-TERM DEBT PAYMENTS ON LONG-TERM DEBT (61) (20) DIVIDENDS PAID (48) (46) SHARES REPURCHASED (70) OTHER 1 (1) --------------- --------------- NET CASH FLOWS - FINANCING ACTIVITIES (45) (74) --------------- --------------- NET CHANGE IN CASH AND CASH EQUIVALENTS 69 10 CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 100 136 --------------- --------------- CASH AND CASH EQUIVALENTS - END OF PERIOD $ 169 $ 146 =============== ===============
(MORE) 16 13 DANA CORPORATION (INCLUDING DANA CREDIT CORPORATION ON THE EQUITY BASIS) CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) JUNE 30, 2001 (IN MILLIONS)
SIX MONTHS ENDED, JUNE 30 ---------------------------------- 2000 2001 --------------- --------------- NET INCOME (LOSS) $ 390 $ (13) DEPRECIATION AND AMORTIZATION 214 219 LOSS (GAIN) ON DIVESTITURES (97) 20 WORKING CAPITAL CHANGE (98) (55) OTHER (96) 51 --------------- --------------- NET CASH FROM OPERATING ACTIVITIES 313 222 --------------- --------------- PURCHASES OF PROPERTY, PLANT AND EQUIPMENT (237) (164) ACQUISITIONS (205) (21) DIVESTITURES 524 26 OTHER 33 21 --------------- --------------- NET CASH FLOWS - INVESTING ACTIVITIES 115 (138) --------------- --------------- NET CHANGE IN SHORT-TERM DEBT 295 176 PROCEEDS FROM LONG-TERM DEBT 10 PAYMENTS ON LONG-TERM DEBT (242) (182) DIVIDENDS PAID (96) (92) SHARES REPURCHASED (320) OTHER 3 1 --------------- --------------- NET CASH FLOWS - FINANCING ACTIVITIES (360) (87) --------------- --------------- NET CHANGE IN CASH AND CASH EQUIVALENTS 68 (3) CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 101 149 --------------- --------------- CASH AND CASH EQUIVALENTS - END OF PERIOD $ 169 $ 146 =============== ===============
(END) 17 [DANA CORP. LOGO] INVESTOR RELATIONS DANA CORPORATION QUARTERLY FINANCIAL INFORMATION Q2 - 2001 (UNAUDITED) (IN MILLIONS)
SALES EBIT OPERATING PAT ----- ---- ------------- 00 01 00 01 00 01 -- -- -- -- -- -- AUTOMOTIVE SYSTEMS GROUP $ 1,209 $ 1,022 $ 141 $ 81 $ 93 $ 51 AUTOMOTIVE AFTERMARKET GROUP 720 673 38 16 24 10 COMMERCIAL VEHICLE SYSTEMS 452 300 47 12 29 7 ENGINE SYSTEMS GROUP 367 310 35 8 25 6 FLUID SYSTEMS GROUP 315 280 36 25 22 15 OFF-HIGHWAY SYSTEMS GROUP 220 165 20 8 12 5 DANA COMMERCIAL CREDIT 9 6 OTHER 13 18 (61) (57) (60) (74) ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OPERATIONS 3,296 2,768 256 93 154 26 RESTRUCTURING AND NONRECURRING ITEMS (15) (17) (9) (12) ---------- ---------- ---------- ---------- ---------- ---------- CONSOLIDATED $ 3,296 $ 2,768 $ 241 $ 76 $ 145 $ 14 ========== ========== ========== ========== ========== ========== NORTH AMERICA $ 2,552 $ 2,114 $ 282 $ 128 $ 181 $ 77 EUROPE 520 439 27 16 16 9 SOUTH AMERICA 141 133 8 6 7 (1) ASIA PACIFIC 83 82 2 (1) 1 -- DANA COMMERCIAL CREDIT 9 6 OTHER (63) (56) (60) (65) ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OPERATIONS 3,296 2,768 256 93 154 26 RESTRUCTURING AND NONRECURRING ITEMS (15) (17) (9) (12) ---------- ---------- ---------- ---------- ---------- ---------- CONSOLIDATED $ 3,296 $ 2,768 $ 241 $ 76 $ 145 $ 14 ========== ========== ========== ========== ========== ========== NET PROFIT NET ASSETS ---------- ---------- 00 01 00 01 -- -- -- -- AUTOMOTIVE SYSTEMS GROUP $ 71 $ 30 $ 1,913 $ 1,919 AUTOMOTIVE AFTERMARKET GROUP 6 (6) 2,023 1,728 COMMERCIAL VEHICLE SYSTEMS 19 (1) 626 458 ENGINE SYSTEMS GROUP 18 -- 1,164 1,070 FLUID SYSTEMS GROUP 17 9 724 635 OFF-HIGHWAY SYSTEMS GROUP 8 2 524 470 DANA COMMERCIAL CREDIT 9 6 162 180 OTHER 6 (14) 112 188 ---------- ---------- ---------- ---------- TOTAL OPERATIONS 154 26 7,248 6,648 RESTRUCTURING AND NONRECURRING ITEMS (9) (12) ---------- ---------- ---------- ---------- CONSOLIDATED $ 145 $ 14 $ 7,248 $ 6,648 ========== ========== ========== ========== NORTH AMERICA $ 136 $ 34 $ 5,037 $ 4,392 EUROPE 6 -- 1,421 1,434 SOUTH AMERICA 4 (4) 535 533 ASIA PACIFIC (2) (3) 129 165 DANA COMMERCIAL CREDIT 9 6 162 180 OTHER 1 (7) (36) (56) ---------- ---------- ---------- ---------- TOTAL OPERATIONS 154 26 7,248 6,648 RESTRUCTURING AND NONRECURRING ITEMS (9) (12) ---------- ---------- ---------- ---------- CONSOLIDATED $ 145 $ 14 $ 7,248 $ 6,648 ========== ========== ========== ==========
See Note 13 to Dana's 2000 Annual Report for further information (WWW.Dana.Com) -------------- FOR MORE INFORMATION (WWW.Dana.Com) - Dial-For-Dana U.S. or Canada 800-537-8823; OH 800-472-8810 E-Mail Greg.Smietanski@Dana.com or Karen.Crawford@Dana.Com Dana Investor Relations 419-535-4635 18 [DANA CORP. LOGO] INVESTOR RELATIONS DANA CORPORATION QUARTERLY FINANCIAL INFORMATION FOR SIX MONTHS ENDED JUNE 30, 2001 (UNAUDITED) (IN MILLIONS)
SALES EBIT OPERATING PAT ----- ---- ------------- 00 01 00 01 00 01 -- -- -- -- -- -- AUTOMOTIVE SYSTEMS GROUP $ 2,439 $ 1,993 $ 274 $ 136 $ 179 $ 90 AUTOMOTIVE AFTERMARKET GROUP 1,453 1,310 97 2 60 1 COMMERCIAL VEHICLE SYSTEMS 966 619 104 21 63 12 ENGINE SYSTEMS GROUP 748 638 65 21 44 16 FLUID SYSTEMS GROUP 628 563 71 48 44 29 OFF-HIGHWAY SYSTEMS GROUP 450 342 41 21 25 13 DANA COMMERCIAL CREDIT 21 12 OTHER 80 34 (114) (112) (121) (146) ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OPERATIONS 6,764 5,499 538 137 315 27 RESTRUCTURING AND NONRECURRING ITEMS 131 (63) 75 (40) ---------- ---------- ---------- ---------- ---------- ---------- CONSOLIDATED $ 6,764 $ 5,499 $ 669 $ 74 $ 390 $ (13) ========== ========== ========== ========== ========== ========== NORTH AMERICA $ 5,270 $ 4,148 $ 588 $ 204 $ 369 $ 120 EUROPE 1,063 928 58 36 35 28 SOUTH AMERICA 269 260 10 7 8 (5) ASIA PACIFIC 162 163 3 1 2 -- DANA COMMERCIAL CREDIT 21 12 OTHER (121) (111) (120) (128) ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OPERATIONS 6,764 5,499 538 137 315 27 RESTRUCTURING AND NONRECURRING ITEMS 131 (63) 75 (40) ---------- ---------- ---------- ---------- ---------- ---------- CONSOLIDATED $ 6,764 $ 5,499 $ 669 $ 74 $ 390 $ (13) ========== ========== ========== ========== ========== ========== NET PROFIT NET ASSETS ---------- ---------- 00 01 00 01 -- -- -- -- AUTOMOTIVE SYSTEMS GROUP $ 135 $ 47 $ 1,913 $ 1,919 AUTOMOTIVE AFTERMARKET GROUP 27 (32) 2,023 1,728 COMMERCIAL VEHICLE SYSTEMS 44 (4) 626 458 ENGINE SYSTEMS GROUP 31 2 1,164 1,070 FLUID SYSTEMS GROUP 33 17 724 635 OFF-HIGHWAY SYSTEMS GROUP 17 6 524 470 DANA COMMERCIAL CREDIT 21 12 162 180 OTHER 7 (21) 112 188 ---------- ---------- ---------- ---------- TOTAL OPERATIONS 315 27 7,248 6,648 RESTRUCTURING AND NONRECURRING ITEMS 75 (40) ---------- ---------- ---------- ---------- CONSOLIDATED $ 390 $ (13) $ 7,248 $ 6,648 ========== ========== ========== ========== NORTH AMERICA $ 277 $ 32 $ 5,037 $ 4,392 EUROPE 15 7 1,421 1,434 SOUTH AMERICA 4 (11) 535 533 ASIA PACIFIC (4) (5) 129 165 DANA COMMERCIAL CREDIT 21 12 162 180 OTHER 2 (8) (36) (56) ---------- ---------- ---------- ---------- TOTAL OPERATIONS 315 27 7,248 6,648 RESTRUCTURING AND NONRECURRING ITEMS 75 (40) ---------- ---------- ---------- ---------- CONSOLIDATED $ 390 $ (13) $ 7,248 $ 6,648 ========== ========== ========== ==========
See Note 13 to Dana's 2000 Annual Report for further information (WWW.Dana.Com) ------------- FOR MORE INFORMATION (WWW.Dana.Com) - Dial-For-Dana U.S. or Canada 800-537-8823; OH 800-472-8810 E-Mail Greg.Smietanski@Dana.com or Karen.Crawford@Dana.Com Dana Investor Relations 419-535-4635 19 NEWS RELEASE EXHIBIT B [DANA CORP. LOGO] FOR IMMEDIATE RELEASE CONTACT: GARY CORRIGAN (419) 535-4813 gary.corrigan@dana.com DANA CORPORATION DECLARES 255TH CONSECUTIVE DIVIDEND TOLEDO, OHIO, JULY 17, 2001 - DANA CORPORATION (NYSE: DCN) TODAY DECLARED ITS 255TH CONSECUTIVE DIVIDEND, EXTENDING A STREAK THAT DATES BACK TO 1936 WITHOUT A MISSED OR REDUCED PAYMENT. THE DIVIDEND OF 31 CENTS PER SHARE IS PAYABLE SEPT. 14, 2001, TO SHAREHOLDERS OF RECORD AUGUST 31. DANA CHAIRMAN AND CEO JOE MAGLIOCHETTI SAID, "WE ARE EXTREMELY PROUD OF OUR LONG HISTORY OF RELIABLE DIVIDEND PAYMENTS TO DANA SHAREHOLDERS. WE BELIEVE THAT OUR DIVIDEND IS ONE OF THE ITEMS THAT MAKES DANA STOCK AN ATTRACTIVE LONG-TERM INVESTMENT." AT THE CLOSE OF TRADING YESTERDAY, DANA'S DIVIDEND YIELD WAS APPROXIMATELY 5 PERCENT. DANA CORPORATION IS ONE OF THE WORLD'S LARGEST SUPPLIERS OF COMPONENTS, MODULES AND COMPLETE SYSTEMS TO GLOBAL VEHICLE MANUFACTURERS AND THEIR RELATED AFTERMARKETS. FOUNDED IN 1904 AND BASED IN TOLEDO, OHIO, THE COMPANY OPERATES SOME 300 MAJOR FACILITIES IN 35 COUNTRIES AND EMPLOYS APPROXIMATELY 75,000 PEOPLE. THE COMPANY REPORTED SALES OF $12.3 BILLION IN 2000. DANA'S INTERNET ADDRESS IS WWW.DANA.COM. # # # -----END PRIVACY-ENHANCED MESSAGE-----