USA: Dana Corp exits two businesses
Dana Corporation and The Daido Metal Company have dissolved their joint venture, which manufactured engine bearings and related materials in Atlantic, Iowa, and Bellefontaine, Ohio.
Dana previously had a 70% interest in the joint venture and now has assumed full ownership of the Atlantic facility, which employs approximately 320 people and had 2004 sales of $US47 million, including sales of $14 million to Dana.
This operation will continue to service the component maker's commercial vehicle and industrial customers.
Daido has assumed full ownership of the Bellefontaine facility, which will service its light-duty customers. This operation employs approximately 350 people and had sales of $44 million in 2004, including sales of $26 million to Dana.
In a separate transaction, Dana has sold its fuel-rail business, consisting of a production facility in Angola, Indiana, with nearly 250 people and sales of approximately $38 million in 2004.
The buyer, Millennium Industries, is an Auburn Hills, Michigan-based manufacturer of automotive fuel systems.
While Dana has exited the fuel-rail business, it will continue to design and manufacture fluid-transfer components and systems.
"These transactions support our ongoing commitment to simplify our business, strengthen our financial performance, and execute our core product strategies," said Dana chairman and CEO Mike Burns. The operations in Bellefontaine and Angola are now better aligned with companies committed to their respective market niches."
Dana expects these transactions to result in an aggregate after-tax charge of approximately $11 million, or 7 cents per share, which will be reported as an unusual item in the third quarter. The company's 2005 earnings guidance excludes gains and losses on asset sales and divestitures and other unusual items.