TOLEDO, Ohio - Dana Corp. has agreed to sell most of its aftermarket engine management business but keep operations that sell aftermarket water pumps and clutches.
The buyer will be Standard Motor Products Inc., a replacement parts maker and distributor of Long Island City, N.Y. The deal is worth about $120 million in cash, stock and a note.
Dana recorded an after-tax charge of about $23 million in the fourth quarter of 2002 related to the sale, which is to be complete this year. Dana said it decided to sell the business because aftermarket electronic control modules are not part of its core engine business.
With the charge, Dana posted a fourth quarter net loss of $9 million, or 6 cents a share, compared with a net loss of $298 million, or $2.01 a share, a year earlier.
Without the charge and other special items, Dana reported a profit of $32 million, or 22 cents a share, compared with a loss of $14 million, or 9 cents a share, in the same period a year ago. Revenue rose slightly to $2.41 billion from $2.37 billion.
For the full year, Dana had a profit of $171 million, compared to $5 million in 2001.
Sales totaled $10.28 billion, up slightly from $10.27 billion a year earlier.