22nd March 2006 - Dana Reports Preliminary Fourth-Quarter and Full-Year 2005 Results

Dana Corporation today reported preliminary, unaudited consolidated financial results for the quarter and full year ended Dec. 31, 2005.

Fourth-Quarter 2005 Results

Sales for the fourth quarter of 2005 were $2,046 million, compared to $1,988 million during the same period in 2004. The company expects to report a net loss of $376 million for the quarter, including a loss from continuing operations of $231 million. This compares to a net loss of $136 million in the fourth quarter of 2004, which included a loss from continuing operations of $72 million.

The fourth-quarter 2005 net loss will include unusual charges expected to total $230 million, after tax. These include:

The balance of the fourth-quarter 2005 loss - expected to total $146 million, after tax - will be from operations. Continuing operations, before unusual items, are expected to generate a loss of $126 million in the fourth quarter of 2005 as compared to income of $54 million for the same period in 2004. Discontinued operations are expected to produce a loss of $20 million, before unusual items, in the fourth quarter of 2005, which compares to a loss of $19 million in the previous year's fourth quarter.

Full-Year 2005 Results

Sales of continuing operations for the full year 2005 were $8,611 million, compared to $7,775 million in 2004. The company expects to report a 2005 net loss of $1,602 million versus net income of $62 million in 2004. Included in the net loss for 2005 is an expected loss from continuing operations of $1,172 million compared to income from continuing operations of $72 million in 2004. In addition to the unusual fourth-quarter 2005 charges totaling $230 million, the year-on-year change in earnings is expected to be driven primarily by unusual items recorded in the third quarter of 2005. These items totaled $1,209 million and included:

Adjusted for unusual items, continuing operations are expected to generate an after-tax loss of $215 million in 2005, compared to income of $165 million in 2004. Discontinued operations, on the same basis, are expected to report an after-tax loss of $36 million in 2005, compared to income of $48 million in the prior year. Results from 2004 included income from the automotive aftermarket businesses that were sold in November 2004.

Unusual items of $151 million, after tax, in 2004 included $171 million of charges recorded in the fourth quarter, as well as $20 million of net gains reported earlier in the year. The fourth-quarter 2004 charges included costs associated with completing the divestiture of the company's automotive aftermarket businesses, two facility closures and other manufacturing realignments, and the repurchase of approximately $900 million of long-term debt.

Business Segment Results for Continuing Operations

Sales in the Automotive Systems Group totaled $1,414 million in the fourth quarter of 2005 and $5,941 million for the full year 2005, compared to $1,387 million and $5,384 million respectively during the fourth quarter and full year 2004. On an EBIT basis, the group expects to record income of $6 million during the fourth quarter of 2005 and $187 million for the full year 2005, compared to $49 million and $300 million during the respective periods in 2004.

Sales in the Heavy Vehicle Technologies and Systems Group totaled $626 million in the fourth quarter of 2005 and $2,640 million for the full year 2005, compared to $580 million and $2,299 million respectively during the fourth quarter and full year 2004. On an EBIT basis, the group expects to record a loss of $9 million during the fourth quarter of 2005 and income of $72 million for the full year 2005, compared to earnings of $36 million and $161 million during the respective periods in 2004.

2005 Form 10-K Filing and Investor Communications

Dana will not file its 2005 Form 10-K by the March 31, 2006, extended filing date because of the additional time required to complete its financial statements and the related non-financial disclosures, in light of the company's bankruptcy filing on March 3, 2006, and to complete its assessment of internal control over financial reporting. The company expects to file its 2005 Form 10-K by April 30, 2006. This report will include - in addition to Dana's audited financial statements and management's discussion and analysis of financial condition and results of operations - information generally found in the proxy statement.

The company has suspended its quarterly conference calls and annual shareholder meetings until further notice.

About Dana Corporation

Based in Toledo, Ohio, Dana Corporation is a leading supplier of axle, driveshaft, engine, frame, chassis, and transmission technologies. Dana people design and manufacture products for every major vehicle producer in the world - in the automotive, commercial vehicle, and off-highway markets. The company and certain of its U.S. subsidiaries are operating under Chapter 11 of the U.S. Bankruptcy Code as debtors-in-possession. More information about Dana can be found on the Internet at www.dana.com.

Forward-Looking Statements

Statements in this release that are not entirely historical constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent Dana's expectations based on current information and assumptions. However, forward-looking statements are inherently subject to risks and uncertainties. There can be no assurance that the preliminary numbers reported in this release will not change when the audit of Dana's financial statements is completed or that Dana will file its 2005 Form 10-K when currently contemplated. Forward-looking statements in this release speak only as of the date of the release. Dana does not undertake to update such forward-looking statements.

Source: Dana Corporation Press Release