Dana Completes Sale of Engine Parts Business

Dana Corporation announced today that it has completed the sale of its engine hard parts business to MAHLE GmbH for an aggregate cash payment of approximately $97 million.
The engine hard parts business consists of 39 facilities, which manufacture piston rings, engine bearings, cylinder liners, and camshafts under the Perfect Circle, Clevite, and Glacier Vandervell brands.
With annual revenues of approximately $670 million in 2005, the engine hard parts operations employ approximately 5,000 people in 10 countries.
Dana expects to record a non-cash, pre-tax charge of $30 million to $35 million in the first quarter of 2007 in connection with the completion of this divestiture.
Dana Chairman and CEO Mike Burns said, “This divestiture is an important step in implementing Dana’s reorganization initiatives and sharpening our focus on our core axle, driveshaft, structural, sealing, and thermal products businesses for the automotive, commercial vehicle, and off-highway markets.”
Dana is a supplier of drivetrain, chassis, structural, and engine technologies. Dana people design and manufacture products for every major vehicle and engine producer in the world.
Based in Toledo, Ohio, with operations throughout the world, Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually.
The company’s continuing operations reported sales of $8.6 billion in 2005