Dana Corporation Announces Work Force Reductions at Canadian and Australian Plants as Frame and Axle Supply Agreements Expire
21 December 2005 - 5:34AM
PR Newswire (US)
TOLEDO, Ohio, Dec. 20 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE:DCN) today announced it will eliminate a total of
approximately 800 jobs at one Canadian and three Australian plants
in 2006. Dana will record aggregate pre-tax charges of
approximately $28 million in the fourth quarter of 2005 for the
costs of employee separation in connection with these workforce
reductions. Additional pre-tax charges approximating $10 million
for employee separation and other costs are expected in 2006 or
early 2007 as the workforce reductions are completed. (Logo:
http://www.newscom.com/cgi-bin/prnh/19990903/DANA ) By December
2006, approximately 500 jobs will be eliminated at Dana's
Structural Products plant in Thorold, Ont. This reduction results
from the expiration of a supply agreement for truck frames. With
the remaining work force of 180 people, this plant will continue to
serve as a stamping operation supplying multiple Dana facilities.
By mid 2006, the company will also cut as many as 300 jobs from its
Traction Products facilities in Salisbury, South Australia;
Cheltenham, Victoria; and Yennora, New South Wales. This reduction
is due to the expiration of a supply agreement for rear axle
modules. With a combined, ongoing workforce of approximately 850
people at these Australian plants, Dana will continue to produce
axles, suspension components, structures, and related modules for
various vehicle manufacturers. About Dana Corporation Dana people
design and manufacture products for every major vehicle producer in
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. A
leading supplier of axle, driveshaft, engine, frame, chassis, and
transmission technologies, Dana employs 46,000 people in 28
countries. Based in Toledo, Ohio, the company reported sales of
$9.1 billion in 2004. Dana's Internet address is:
http://www.dana.com/. Forward-Looking Statements Statements in this
release that are not entirely historical constitute
"forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements
represent Dana's expectations based on our current information and
assumptions. However, forward-looking statements are inherently
subject to risks and uncertainties, and actual charges related to
the aforementioned work force reductions could differ materially
from those anticipated. Dana does not undertake to update any
forward-looking statements in this release.
http://www.newscom.com/cgi-bin/prnh/19990903/DANA
http://photoarchive.ap.org/ DATASOURCE: Dana Corporation CONTACT:
Investors, Michelle L. Hards, +1-419-535-4636, or , or Media, Chuck
Hartlage, +1-419-535-4728, or , both of Dana Corporation Web site:
http://www.dana.com/ Company News On-Call:
http://www.prnewswire.com/comp/226839.html
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