Dana to close 14 plants and 29 distribution centres

TOLEDO, Ohio (Oct. 19, 1999) Ð After warning of disappointing fourth-quarter earnings, component supplier Dana Corp. said it will close 14 plants and 29 distribution centres in order to pare costs.

The company, which released third-quarter numbers yesterday, indicated that the closures would occur at locations outside the U.S. and Canada. Dana has 330 plants in 32 countries worldwide with more than 86,000 employees.

“We had not anticipated the softness we’ve seen in Europe this year, particularly in the U.K. and in key industrial and off- highway markets,’ Joe Magliochetti, Dana’s president and chief executive, said in a release.

Magliochetti will likely succeed CEO Southwood Morcott, who plans to retire April 30, 2000.

The Toledo, Ohio-based Dana, which produces parts for the automotive and trucking industries, said its operating profits were $172 million, or $1.03 a share in the third quarter, compared with $136 million, or $0.82 a share a year earlier.