Dana Corporation Declares Dividend, Estimates Impact of Restatements
October 18 2005 - 4:43PM
PR Newswire (US)
TOLEDO, Ohio, Oct. 18 /PRNewswire-FirstCall/ -- The Board of
Directors of Dana Corporation (NYSE:DCN) today declared a dividend
on the company's common stock of 1 cent per share, payable on Dec.
15, 2005, to shareholders of record on Dec. 1, 2005. The Board
determined that the reduction from the 12-cent per share dividend
rate that had been paid in recent quarters was appropriate given
the challenging circumstances facing both the company and the
automotive industry. (Logo:
http://www.newscom.com/cgi-bin/prnh/19990903/DANA) Restatement
Impact Estimated Dana announced on Oct. 10 that its management and
the Audit Committee of Dana's Board of Directors had determined, as
a result of their ongoing internal investigation, that the company
had not properly accounted for certain items during 2004 and the
first and second quarters of 2005, and that the company would
restate its financial statements for those periods. These
conclusions were reached in consultation with Dana's independent
registered public accounting firm, PricewaterhouseCoopers LLP, and
independent investigators retained by the Audit Committee. The
primary purpose for the restatements is to correct issues involving
customer pricing and transactions with suppliers in Dana's
Commercial Vehicle business. Although the investigation is not yet
complete, and the effect of the above restatements may require the
restatement of financial statements for prior periods, the company
currently expects that the net aggregate reduction in net income
for all periods to be restated will be between $25 million and $45
million after tax. Financial Agreement Waivers Secured Since Dana's
announcement on Oct. 10 of its intention to restate its financial
statements for 2004 and 2005 and its decision to write off its U.S.
deferred tax assets, Dana has received additional necessary waivers
through Nov. 30, 2005, under its principal bank facility and
accounts receivable securitization agreement. The company is
currently in discussion with its lenders regarding possible
modifications to its existing facilities, as well as alternative
financing arrangements. The company is in the process of addressing
possible non-compliance with covenants in two of its indentures and
four leases with respect to furnishing financial statements in
accordance with generally accepted accounting principles in the
United States (GAAP). The company is continuing to assess the
impact of these developments on its obligations under other leases
and agreements. Operational and Strategic Actions Being Evaluated
The company plans to make announcements later this week regarding
operational and strategic measures to improve its financial
performance. 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 current
information and assumptions. However, forward-looking statements
are inherently subject to risks and uncertainties. The actual
impact on Dana's net income of the restatements of the company's
financial statements could differ materially from what is currently
anticipated or projected depending upon the results of the ongoing
internal investigation. In addition, there can be no assurances
regarding the outcome of Dana's discussions with its lenders
regarding covenant compliance and future financing arrangements.
Forward-looking statements in this release speak only as of the
date of the release. Dana does not undertake to update such
forward-looking statements.
http://www.newscom.com/cgi-bin/prnh/19990903/DANA DATASOURCE: Dana
Corporation CONTACT: Michelle L. Hards of Dana Corporation,
+1-419-535-4636, or Web site: http://www.dana.com/ Company News
On-Call: http://www.prnewswire.com/comp/226839.html
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