Printer Friendly

DANA CORPORATION REPORTS RECORD QUARTERLY SALES, NET INCOME UP 103 PERCENT; SPLITS STOCK, RAISES DIVIDEND

 TOLEDO, Ohio, April 18 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today reported record sales of $1.6 billion for the first quarter of 1994. This represents a 21 percent increase over 1993's first quarter sales and a 12 percent increase over the previous quarterly record.
 Net income increased 103 percent to $47.7 million from $23.5 million in the first quarter last year, and earnings per share were 97 cents, versus 51 cents for the same period last year.
 Dana's Board of Directors today approved a two-for-one stock split and an amendment to the Company's Articles of Incorporation to increase the number of authorized shares of the Company's common stock from 120 million to 240 million. The record date for the split and the effective date of the amendment is June 1, 1994. The split will be effected by distributing certificates for the additional shares to stockholders of record on that date. The distribution date will be June 15, 1994.
 In addition to the stock split, the Board also approved a 5 percent increase in the dividend over last quarter's dividend. It authorized the payment of a cash dividend in the amount of $.42 per share (to be paid on the pre-split shares), payable on June 15, 1994, to stockholders of record as of June 1, 1994. On an annualized rate, the dividend is $1.68 per share on a pre-split basis.
 Southwood J. Morcott, Chairman and Chief Executive Officer, said, "The action of the Board indicates its confidence in the financial strength and future of the company. Dana is proud of its solid record of 226 consecutive dividends without a decrease or missed payment dating back to 1936."
 The increase in Dana's sales was led by a 24 percent year-over-year increase in sales to the worldwide original equipment highway vehicle market. Production schedules for both light and heavy vehicles remained strong, particularly in the U.S.
 Dana's first-quarter sales to the U.S. light truck OE market, which consists of pick-up trucks, minivans and sport utility vehicles, rose 25 percent above the same period last year. Sales of U.S. heavy truck OE components rose 28 percent over the same period last year.
 Dana's worldwide mobile off-highway OE component operations also are showing excellent growth. Sales to that market were up 35 percent over the prior year, reflecting strength in the construction and agricultural machinery segments. Meanwhile, industrial OE components sales were down 6 percent from last year's first quarter, due primarily to continuing weakness in Europe.
 Dana's distribution sales showed notable improvement over the first quarter of last year, with auto distribution sales up 14 percent, truck parts distribution up 19 percent, and mobile off-highway/industrial distribution sales up 14 percent. These increases are partly attributable to harsh winter weather conditions in the U.S., infrastructure rebuilding and strength in the agricultural area. Dana's distribution sales also benefitted from the contributions of the Reinz group of companies, a leading international manufacturer and distributor of gaskets and sealing systems serving these markets. Dana acquired Reinz in 1993 and formed the new Victor Reinz group.
 "Especially gratifying for us," Morcott said, "is the continuing improvement in our operating margin. Our return on sales also reached its highest level since the second quarter of 1989. These improvements reflect the benefits of increased volumes, our emphasis on cost control and quality, and the continuous improvement ideas of our people."
 Sales in Europe, Dana's largest off-shore region, while still weak as a result of economic conditions, have stabilized. Dana's operations in South America experienced strong growth, while the Asia-Pacific region showed only marginal improvement over the same period last year.
 "These improvements," Morcott said, "are the result of the hard work and dedication to the basics by Dana people."
 Dana Corporation, a Fortune 100 company, is widely recognized for its people involvement style of management. Dana is a global leader in the engineering, manufacturing, and marketing of products and systems for the worldwide vehicular, industrial and mobile off-highway original equipment markets and is a major supplier to the related aftermarkets. The company manufactures and distributes drivetrain components, engine and chassis parts, structural components, fluid power systems and power transmission products. Dana also owns Dana Commercial Credit, a leading provider of lease financing services.
 Dana, incorporated in 1905 and based in Toledo, Ohio, operates facilities in 27 countries with 36,000 people and sales of $5.5 billion in 1993.
 Dana Corporation
 ($ in millions, except
 per share amounts)
 Three Months Ended March 31
 1994 1993(A)
 Sales $1,596.7 $ 1,323.5
 Net Income 47.7 23.5
 Net Income Per Common Share $0.97 $0.51
 Average Shares Outstanding 49.3 46.0
 (A) -- Net income and net income per share as reported in 1993 exclude the one-time charge relating to the adoption of SFAS 112 ($48.9 and $1. per share after-tax).
 -0- 4/18/94
 /CONTACT: PR: Gary Corrigan, Director-Corporate Communications, 419- 535-4813, or INVESTOR: Steve Superits, Director-Investor Relations, 419- 535-4636, both of Dana Corporation/
 (DCN)


CO: Dana Corporation ST: Ohio IN: AUT SU: ERN DIV

BM -- CL014 -- 8757 04/18/94 11:11 EDT
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 18, 1994
Words:855
Previous Article:SOUTHERN COMPANY DECLARES REGULAR QUARTERLY DIVIDEND
Next Article:CFSB BANCORP, INC. REPORTS FIRST QUARTER EARNINGS
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters