Dana says it expects third-quarter earnings to drop nearly 50 percent

TOLEDO (Sept. 18)—Dana Corp. said it expect its third-quarter operating earnings to fall between 41 and 46 cents per share, down from consensus estimate of 86 cents per share, representing a loss of about $250 million. Dana´s sales are suffering from four factors currently hitting the automotive market: unexpected reductions in production schedules for light truck and sport utility vehicles manufactured by Ford and other auto makers, the declining U.S. heavy truck market, continued softness in both the U.S. and European aftermarkets and continued weakness of the Euro. To offset the losses, Dana is reducing its workforce by another 2,000 people above and beyond the nearly 1,000 it laid off at its Reading, Penn., site. The company expects more reductions in the fourth quarter, CEO and Chairman Joe Magliochetti said during a conference call with analysts. Although Dana expects to recoup the $50 million it saw in reduced sales of light trucks, that gain likely will be offset by an equal loss in the heavy truck market during the fourth quarter, Chief Financial Officer Bob Richter said.