Dana Corp. on Wednesday posted a net loss of $8 million, excluding nonrecurring items, on $2.4 billion in sales over the third quarter 2001.
Sales for the quarter were off $500 million, or 17 percent, compared with third quarter 2000. The Toledo, Ohio, auto supplier's $8 million loss this quarter compares with a $61 million net income over the same period a year ago. Including nonrecurring items, the company recorded a net profit of $13 million.
The company cited the down market for its third-quarter performance and acknowledged the possibility of bleaker times ahead. The company, said Chairman and CEO Joe Magliochetti, is gearing up to "face the prospect of a further significant decline in our markets." As a result Dana has: Slashed its fourth-quarter dividend to 1 cent per share, a reduction from the previous quarterly rate of 31 cents per share. By cutting the dividend, Dana's annualized effect is a $178 million improvement in cash flow. Accelerated the restructuring of its operations. This includes adding 15 percent more job cuts to a planned global work force reduction. Dana has eliminated nearly 10,000 jobs in the past 18 months.
The company anticipates taking an after-tax charge of between $400 million and $450 million for the restructuring, mostly in fourth quarter 2001. Announced a series of plant closures and consolidations that will include its engine management, engine products, industrial fluid, and Quinton-Hazell operations. Dana also will accelerate the outsourcing of noncore manufacturing and processes as part of its program to reduce assets and costs. Said it will pursue the sale of its Dana Commercial Credit Corp. leasing operation.
Dana is No. 5 on the Automotive News ranking of the top 150 original-equipment suppliers to North America with $7.1 billion in 2000 parts sales to North America.