Auto Service World
News   July 21, 2004   by Auto Service World

Dana Earnings Double in Second Quarter


Dana Corp. which recently announced an agreement to divest its aftermarket business, credited strong sales in the North American heavy-truck market with helping double the company’s second-quarter profits.
Dana also received a $33 million boost in tax benefits from the sale of its automotive aftermarket business.
The company earned $108 million, or 72 cents per share, in the second quarter compared with $52 million, or 35 cents per share, for the same period a year ago.
Excluding one-time items, the company earned 49 cents per share, matching expectations of analysts surveyed by Thomson First Call.
Sales for the quarter were $2.3 billion, an increase from $2 billion a year ago.
The company’s stock rose $1.33, or 7 percent, to $19.58 in morning trading on the New York Stock Exchange. All figures in U.S. dollars.
Dana announced two weeks ago that it had reached a deal to sell its replacement parts unit for $1.1 billion in cash to a New York-based equity group, The Cypress Group.
The sale of the Automotive Aftermarket Group included 52 plants worldwide that employ about 13,000 people. The business had sales of about $2 billion in 2003, or about a quarter of Dana’s overall annual sales.
The Toledo-based company plans to use money from the sale to reinvest in its core businesses, reduce debt and add to its pension plans. Dana employs 45,000 people worldwide.


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