TOLEDO, OH — Dana Corp. announced yesterday that it has cut its 2004 earnings expectations from $1.90 per share to a range of $1.60 to $1.65 per share, excluding non-recurring items.
Dana Chairman and CEO Michael Burns said that Dana Corp., like most of the industry, is being impacted by the rising cost of steel and other raw materials, in addition to reduced North American light-vehicle production volumes. “Both factors are contributing to lower-than-expected operating results, not only in our original equipment business, but also in the automotive aftermarket business,” said Burns.
“We had expected that the bottom-line impact of these factors could be offset by the stronger performance in our heavy vehicle business and continuing cost-reduction efforts. But, given more recent trends in commodity prices and light-vehicle production volumes, it’s now clear that we will see a negative effect on our 2004 earnings,” Burns said. “It’s also clear that this effect will be more pronounced in the fourth quarter, since our third quarter results will reflect a benefit from favorable tax developments.”
Dana will discuss its third-quarter results in a conference call at 10 a.m. (EDT) on Oct. 20. The call may be accessed via Dana’s Web site (www.dana.com), where it will be accompanied by a brief slide presentation, or by dialing 800-275-3210.
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