TOLEDO, Ohio (Oct. 20) — Dana Corp. said it plans to divest its fluid products and two other non-core businesses as part of a strategic initiative to enhance the firm´s financial performance.
The divestitures are part of a plan that also includes operational restructuring (including plant closings), work force reductions and benefit cost reductions. The firm then will focus on its sealing, light- and heavy-vehicle drivetrain products, associated structures and thermal products.
Dana's fluid products business consists of 16 operations that make hose and other goods for braking, power steering, heating/air conditioning and fuel applications. The unit employs about 3,850 people in six countries and posted 2004 sales of about $470 million.
The company also plans to sell its engine hard parts and pump products businesses. Dana said it expects to incur non-cash, pre-tax charges this year of about $315 million related to the sales.
It will use proceeds from the divestitures to reduce debt and reinvest in its core businesses.
Among its other initiatives, Dana plans to reduce its salaried work force by 5 percent through 2006, mainly through attrition. This reduction is in addition to the operations being divested or closed.