Continued declines in heavy and light truck production prompted Dana Corp. to accelerate a restructuring plan calling for workforce reductions and the closing or closure of more than 30 facilities.
“Given the most recent trends and the general economic outlook, we continue to be cautious about the prospects for recovery in our markets in the near term,” said Dana Chairman and CEO Joe Magliochetti. “That’s why the rapid execution of our restructurng plan continues to be our primary focus. These actions will reduce our break-even point and enable us to improve our performance even if our markets remain weak.”
The company reported a net loss of $298 million, after non-recurring charges, on sales of $10.3 billion for 2001. Income excluding these non-recurring items was $5 million. In 2000, net income was $334 million after net non-recurring charges, and income excluding non-recurring items was $377 million. Sales were $12.3 billion.
Sales for the fourth quarter of 2001 were $2.4 billion, down from $2.7 billion for the same period last year. The company reported a fourth-quarter net loss of $298 million after net non-recurring charges of $284 million. Excluding the non-recurring items, the loss was $14 million. In the fourth quarter of 2000, the net loss was $84 million after net non-recurring charges. Income excluding non-recurring items was $2 million.
Most of the 2001 non-recurring charges relate to a major restructuring plan announced in October, which called for consolidation and plant closures as well as a 15% workforce reduction. Declining production schedules over the past two years had already required a 12% work-force reduction that affected all levels of the organization.
Dana said acceleration of the restructuring plan followed sharp declines in light vehicle production in the third quarter. Sales incentives drove strong light vehicle sales in the fourth quarter, but manufacturers met the demand from existing inventories and continued to cut production, which impacted Dana’s sales. Similarly, heavy-truck production, which had already experienced a historic drop, slowed another 13% from the third to fourth quarter.
Magliochetti said that since October, Dana has reduced its workforce by 7% and announced the closure of 21 facilities. They have also announced several new programs, including a deal to provide medium and heavy axles and drivelines to Paccar, parent of Kenworth and Peterbilt, and another to provide medium axles for International trucks.
“Given the most recent trends and the general economic outlook, we continue to be cautious about the prospects for recovery in our markets in the near term,” said Dana Chairman and CEO Joe Magliochetti. “That’s why the rapid execution of our restructurng plan continues to be our primary focus. These actions will reduce our break-even point and enable us to improve our performance even if our markets remain weak.”
The company reported a net loss of $298 million, after non-recurring charges, on sales of $10.3 billion for 2001. Income excluding these non-recurring items was $5 million. In 2000, net income was $334 million after net non-recurring charges, and income excluding non-recurring items was $377 million. Sales were $12.3 billion.
Sales for the fourth quarter of 2001 were $2.4 billion, down from $2.7 billion for the same period last year. The company reported a fourth-quarter net loss of $298 million after net non-recurring charges of $284 million. Excluding the non-recurring items, the loss was $14 million. In the fourth quarter of 2000, the net loss was $84 million after net non-recurring charges. Income excluding non-recurring items was $2 million.
Most of the 2001 non-recurring charges relate to a major restructuring plan announced in October, which called for consolidation and plant closures as well as a 15% workforce reduction. Declining production schedules over the past two years had already required a 12% work-force reduction that affected all levels of the organization.
Dana said acceleration of the restructuring plan followed sharp declines in light vehicle production in the third quarter. Sales incentives drove strong light vehicle sales in the fourth quarter, but manufacturers met the demand from existing inventories and continued to cut production, which impacted Dana’s sales. Similarly, heavy-truck production, which had already experienced a historic drop, slowed another 13% from the third to fourth quarter.
Magliochetti said that since October, Dana has reduced its workforce by 7% and announced the closure of 21 facilities. They have also announced several new programs, including a deal to provide medium and heavy axles and drivelines to Paccar, parent of Kenworth and Peterbilt, and another to provide medium axles for International trucks.
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