Dana Will Consolidate Engine, Fluid Businesses.(Dana Corp.)(Brief Article)(Statistical Data Included)

Auto parts maker Dana Corp. said it would consolidate its engine and fluid businesses, and take about $445 million in charges for a restructuring announced in October. Dana based in Toledo, Ohio said 65 percent of the charges, or about $289 million, would be taken in the fourth quarter, with the rest taken in 2002.

In mid-October, Dana reported a third-quarter operating loss and said it would cut more than 11,000 jobs, or 15 percent of its work force of 75,000, and close plants as sagging auto sales hurt demand for auto parts. Those job cuts came on top of about 10,000 jobs Dana eliminated over the past year and a half. The expected $445 million in after-tax charges is near the top of the company's earlier estimated range of $400 million to $450 million in charges.

"This is the most extensive restructuring that Dana has ever undertaken and will include the closure or consolidation of more than 30 facilities worldwide," Dana's Chief Financial Officer Bob Richter said in a statement. About 35 percent of the charge, or about $156 million, will be non-cash, Dana said, while most of the cash amount will go toward severance costs for the job cuts announced in October.

Three-quarters of the restructuring charges would stem from actions related to Dana's operations in North America, the company said.

Print Get the Mag Weekly Updates