Dana (DAN) 8-K Dana Corporation Announces Stronger First-quarter Results

Exhibit 99

[Dana News Release Heading]

CONTACT: Michelle Hards
(419) 535-4636
michelle.hards@dana.com

DANA CORPORATION ANNOUNCES STRONGER FIRST-QUARTER RESULTS

Restructuring Continues to Drive Improvement

TOLEDO, Ohio, April 24, 2003 – Dana Corporation (NYSE: DCN) today announced first-quarter sales of $2.4 billion and net income of $41 million, or 28 cents per share. In the first quarter of 2002, Dana reported sales of $2.3 billion and a netlossof $229 million, or $1.54 per share.

The increase in sales of approximately 5 percent benefited from currency translation; however, internal growth contributed approximately two-thirds of the amount. Net income for 2003 included one-time, after-tax gains of $10 million, or 7 cents per share, associated with the sale of assets of Dana Credit Corporation (DCC). The net loss reported in the first quarter of 2002 reflected the impact of the required adoption of new accounting standard FAS 142 ($220 million or $1.48 cents per share) and certain net charges associated with the restructuring program announced in October 2001 ($37 million or 24 cents per share).

Dana Chairman and CEO Joe Magliochetti said, “Our 2003 first-quarter performance again validates the success and importance of our restructuring program. We expect that our performance will be further enhanced as we conclude the final actions in this program and begin to realize the full run-rate of the restructuring benefits later this year.

“We improved upon last year’s results despite a large number of new program launches in our Structural Solutions Group. We expect to have most of these launch costs behind us by the end of the third quarter,” he said. “Additionally, we should benefit from the forecasted ramp-up in heavy-vehicle production as we move through the year.

“As a result of these factors, we expect our earnings to improve during the balance of the year. At the same time, we remain very comfortable with our expectation of a light-vehicle build of 15.8 to 16.2 million units in North America,” he said. “Considering these factors and the $10 million in gains we have already received from the sale of DCC assets, we are revising our outlook for full-year net income to a range of $195 million to $215 million.”

Dana Chief Financial Officer Bob Richter added, “During the quarter, we continued to make solid progress on the sale of DCC assets, realizing proceeds of approximately $80 million in transactions that resulted in the after-tax gains that were included in our net income. Proceeds from these transactions were used by DCC to reduce its indebtedness.

“At the parent company level, we continue to manage for cash, and despite a seasonal, first-quarter increase in working capital, the percentage of working capital to sales is improved and we remain committed to a year-on-year reduction in working capital of $200 million,” Mr. Richter said. “This will enable us to realize our goal of reducing net debt in 2003 by $330 million to $380 million.”

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Mr. Magliochetti concluded, “We believe these positive developments, in combination with the anticipated stronger second-half earnings, will provide a solid platform for transitioning Dana from a restructuring mode to a renewed focus on innovation, technology, and other strategic growth opportunities.”

Dana will discuss its first-quarter results in a conference call at 1 p.m. (EDT) today. The call may be accessed via Dana’s web site (www.dana.com), where it will be accompanied by a slide presentation, or by dialing (800) 275-3210. Please dial into the conference five minutes prior to the call. An audio recording of this conference call will be available after 5 p.m. today. To access this recording, please dial (800) 537-8823. A webcast replay of the call will be available at 6 p.m. today and is also accessible via the Dana web site.

Dana Corporation is a global leader in the design, engineering, and manufacture of value-added products and systems for automotive, commercial, and off-highway vehicle manufacturers and their related aftermarkets. The company employs more than 60,000 people worldwide. Founded in 1904 and based in Toledo, Ohio, Dana operates hundreds of technology, manufacturing, and customer service facilities in 30 countries. The company reported 2002 sales of $9.5 billion.

Certain statements contained herein (including our forecasts, beliefs, and expectations) constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve assumptions, uncertainties, and risks, and Dana’s actual results, performance, or achievements may differ materially from those expressed or implied in these statements. Among the factors that could affect Dana’s actual results are the impact of national and international economic conditions (including additional adverse effects from terrorism or hostilities) on production and sales by the company and its vehicular customers, and the company’s ability to complete activities related to the October 2001 restructuring program and the divestiture of the Engine Management aftermarket operations. Additional factors are contained in Dana’s public filings with the Securities and Exchange Commission. Dana does not undertake to update any forward-looking statements contained herein.

# # #

5

Dana Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)

				Three Months Ended March 31
				2003			2002
Net sales				$	2,442		$	2,321
Revenue from lease financing and other income					30			53
					2,472			2,374
Costs and expenses
		Cost of sales			2,183			2,054
		Selling, general and administrative expenses			201			221
		Restructuring charges						37
		Interest expense			59			67
					2,443			2,379
Income (loss) before income taxes					29			(5	)
Income tax benefit (expense)					2			(20	)
Minority interest					(2	)		(6	)
Equity in earnings of affiliates					17			18
	Income (loss) from continuing operations				46			(13	)
	Income (loss) from discontinued operations				(5	)		4
	Income (loss)��before effect of change in accounting				41			(9	)
	Effect of change in accounting							(220	)
	Net income (loss)			$	41		$	(229	)
Basic earnings (loss) per share
		Income (loss) of continuing operations		$	0.31		$	(0.09	)
		Income (loss) from discontinued operations			(0.03	)		0.03
		Effect of change in accounting						(1.48	)
		Net income (loss)		$	0.28		$	(1.54	)
Diluted earnings (loss) per share
		Income (loss) of continuing operations		$	0.31		$	(0.09	)
		Income (loss) from discontinued operations			(0.03	)		0.03
		Effect of change in accounting						(1.48	)
		Net income (loss)		$	0.28		$	(1.54	)
Average shares outstanding -
			For Basic EPS		148			148
			For Diluted EPS		149			149

Page 1

Dana Corporation
Condensed Balance Sheet (Unaudited)
(in millions)

			March 31		December 31
Assets			2003		2002
Current assets
	Cash and marketable securities		$	584	$	571
	Accounts receivable
		Trade		1,492		1,348
		Other		313		320
	Inventories			1,156		1,116
	Other current assets			829		763
		Total current assets		4,374		4,118
Property, plant and equipment, net				2,522		2,556
Investment in leases				763		827
Investments and other assets				2,014		2,052
	Total assets		$	9,673	$	9,553
Liabilities and Shareholders’ Equity
Current liabilities
	Accounts payable and other current liabilities		$	2,472	$	2,537
	Notes payable			644		287
		Total current liabilities		3,116		2,824
Long-term debt				2,947		3,215
Deferred employee benefits and other noncurrent liabilities				1,918		1,925
Minority interest				106		107
Shareholders’ equity				1,586		1,482
	Total liabilities and shareholders’ equity		$	9,673	$	9,553

Page 2

Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)

		Three Months Ended March 31
		2003			2002
Net income (loss)		$	41		$	(229	)
Depreciation and amortization			103			121
Asset impairment			6			21
Change in accounting for goodwill						220
Loss (gain) on divestitures and asset sales			(11	)		1
Working capital change			(237	)		(35	)
Other			(13	)		(28	)
	Net cash flows – operating activities		(111	)		71
Purchases of property, plant and equipment			(76	)		(75	)
Purchases of assets to be leased						(26	)
Payments received on leases			9			9
Net loans to customers			2			(3	)
Divestitures						10
Asset sales			104			16
Other			6			27
	Net cash flows – investing activities		45			(42	)
Net change in short-term debt			87			(12	)
Proceeds from long-term debt						250
Payments on long-term debt			(6	)		(191	)
Dividends paid			(1	)		(1	)
Other			(1	)		1
	Net cash flows – financing activities		79			47
Net change in cash and cash equivalents			13			76
Net change in cash – discontinued operations						(2	)
Cash and cash equivalents – beginning of period			571			195
Cash and cash equivalents – end of period		$	584		$	269

Page 3

Dana Corporation
(Including Dana Credit Corporation on the Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)

		Three Months Ended March 31
		2003			2002
Net sales		$	2,442		$	2,321
Other income			13			14
			2,455			2,335
Costs and expenses
	Cost of sales		2,196			2,069
	Selling, general and administrative expenses		181			195
	Restructuring charges					37
	Interest expense		42			45
			2,419			2,346
Income (loss) before income taxes			36			(11	)
Income tax expense			(15	)		(16	)
Minority interest			(2	)		(6	)
Equity in earnings of affiliates			27			20
Income (loss) from continuing operations			46			(13	)
Income (loss) from discontinued operations			(5	)		4
Income (loss) before effect of change in accounting			41			(9	)
Effect of change in accounting						(220	)
Net income (loss)		$	41		$	(229	)

Page 4

Dana Corporation
(Including Dana Credit Corporation on the Equity Basis)
Condensed Balance Sheet (Unaudited)
(in millions)

			March 31		December 31
Assets			2003		2002
Current assets
	Cash and marketable securities		$	542	$	551
	Accounts receivable
		Trade		1,492		1,348
		Other		309		209
	Inventories			1,156		1,116
	Other current assets			793		716
		Total current assets		4,292		3,940
Property, plant and equipment, net				2,240		2,253
Investments and other assets				2,377		2,375
	Total assets		$	8,909	$	8,568
Liabilities and Shareholders’ Equity
Current liabilities
	Accounts payable and other current liabilities		$	2,616	$	2,559
	Notes payable			462		53
		Total current liabilities		3,078		2,612
Long-term debt				2,218		2,462
Deferred employee benefits and other noncurrent liabilities				1,922		1,906
Minority interest				105		106
Shareholders’ equity				1,586		1,482
	Total liabilities and shareholders’ equity		$	8,909	$	8,568

Page 5

Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt
(in millions)

			Three Months Ended March 31
			2003			2002
	Sources
		Net income (loss)	$	41		$	(229	)
		Change in accounting for goodwill					220
		Net income (loss) before goodwill change		41			(9	)
		Depreciation		86			98
		Asset sales		4
		Divestitures					10
		Change in working capital		(192	)		(10	)
				(61	)		89
	Uses
		Capital spend		(72	)		(64	)
		Dividends		(1	)		(1	)
		Net changes in other accounts		(8	)		(32	)
				(81	)		(97	)
	October 2001 restructuring cash impact
		After-tax charges					37
		Cash payments		(44	)		(39	)
		Proceeds from asset sales		20			2
				(24	)		—
Cash change in net debt			$	(166	)	$	(8	)

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Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)

		Three Months Ended March 31, 2003
		Dana
		with DCC on						Elimination			Dana
		Equity Basis			DCC			Entries			Consolidated
Net sales		$	2,442		$			$			$	2,442
Other income			13			38			(21	)		30
			2,455			38			(21	)		2,472
Costs and expenses
	Cost of sales		2,196						(13	)		2,183
	Selling, general and administrative expenses		181			29			(9	)		201
	Interest expense		42			17						59
			2,419			46			(22	)		2,443
Income (loss) before income taxes			36			(8	)		1			29
Income tax benefit (expense)			(15	)		17						2
Minority interest			(2	)								(2	)
Equity in earnings of affiliates			27			7			(17	)		17
Income from continuing operations			46			16			(16	)		46
Loss from discontinued operations			(5	)								(5	)
Net income		$	41		$	16		$	(16	)	$	41

This consolidating statement provides a reconciliation of the amounts presented for Dana with Dana Credit Corporation (DCC) on an equity basis to amounts reported for Dana Corporation on a fully consolidated basis.

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Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)

		Three Months Ended March 31, 2002
		Dana
		with DCC on						Elimination			Dana
		Equity Basis			DCC			Entries			Consolidated
Net sales		$	2,321		$			$			$	2,321
Other income			14			68			(29	)		53
			2,335			68			(29	)		2,374
Costs and expenses
	Cost of sales		2,069						(15	)		2,054
	Selling, general and administrative expenses		195			39			(13	)		221
	Restructuring charges		37									37
	Interest expense		45			22						67
			2,346			61			(28	)		2,379
Income (loss) before income taxes			(11	)		7			(1	)		(5	)
Income tax expense			(16	)		(4	)					(20	)
Minority interest			(6	)								(6	)
Equity in earnings of affiliates			20			7			(9	)		18
Income (loss) from continuing operations			(13	)		10			(10	)		(13	)
Income from discontinued operations			4									4
Income (loss) before effect of change in accounting			(9	)		10			(10	)		(9	)
Effect of change in accounting			(220	)								(220	)
Net income (loss)		$	(229	)	$	10		$	(10	)	$	(229	)

This consolidating statement provides a reconciliation of the amounts presented for Dana with Dana Credit Corporation (DCC) on an equity basis to amounts reported for Dana Corporation on a fully consolidated basis.

Page 8

Dana Corporation
Condensed Consolidating Balance Sheet (Unaudited)
(in millions)

			March 31, 2003
			Dana
			with DCC on				Elimination			Dana
Assets			Equity Basis		DCC		Entries			Consolidated
Current assets
	Cash and marketable securities		$	542	$	42	$			$	584
	Accounts receivable
		Trade		1,492							1,492
		Other		309		4					313
	Inventories			1,156							1,156
	Other current assets			793		207		(171	)		829
		Total current assets		4,292		253		(171	)		4,374
Property, plant and equipment, net				2,240		37		245			2,522
Investments in leases						1,008		(245	)		763
Investments and other assets				2,377		544		(907	)		2,014
	Total assets		$	8,909	$	1,842	$	(1,078	)	$	9,673
Liabilities and Shareholders’ Equity
Current liabilities
	Accounts payable and other current liabilities		$	2,616	$	27	$	(171	)	$	2,472
	Notes payable			462		182					644
		Total current liabilities		3,078		209		(171	)		3,116
Long-term debt				2,218		729					2,947
Deferred employee benefits and other noncurrent liabilities				1,922		616		(620	)		1,918
Minority interest				105		1					106
Shareholders’ equity				1,586		287		(287	)		1,586
	Total liabilities and shareholders’ equity		$	8,909	$	1,842	$	(1,078	)	$	9,673

This consolidating statement provides a reconciliation of the amounts presented for Dana with Dana Credit Corporation (DCC) on an equity basis to amounts reported for Dana Corporation on a fully consolidated basis.

Page 9

Dana Corporation
Condensed Consolidating Balance Sheet (Unaudited)
(in millions)

			December 31, 2002
			Dana
			with DCC on				Elimination			Dana
Assets			Equity Basis		DCC		Entries			Consolidated
Current assets
	Cash and marketable securities		$	551	$	20	$			$	571
	Accounts receivable
		Trade		1,348							1,348
		Other		209		111					320
	Inventories			1,116							1,116
	Other current assets			716		105		(58	)		763
		Total current assets		3,940		236		(58	)		4,118
Property, plant and equipment, net				2,253		39		264			2,556
Investments in leases						1,091		(264	)		827
Investments and other assets				2,375		569		(892	)		2,052
	Total assets		$	8,568	$	1,935	$	(950	)	$	9,553
Liabilities and Shareholders’ Equity
Current liabilities
	Accounts payable and other current liabilities		$	2,559	$	37	$	(59	)	$	2,537
	Notes payable			53		234					287
		Total current liabilities		2,612		271		(59	)		2,824
Long-term debt				2,462		753					3,215
Deferred employee benefits and other noncurrent liabilities				1,906		639		(620	)		1,925
Minority interest				106		1					107
Shareholders’ equity				1,482		271		(271	)		1,482
	Total liabilities and shareholders’ equity		$	8,568	$	1,935	$	(950	)	$	9,553

This consolidating statement provides a reconciliation of the amounts presented for Dana with Dana Credit Corporation (DCC) on an equity basis to amounts reported for Dana Corporation on a fully consolidated basis.

Page 10

Dana Corporation
Consolidating Cash Flow Impact on Net Debt
(in millions)

		Three Months Ended March 31, 2003
		Dana
		with DCC on						Elimination			Dana
		Equity Basis			DCC			Entries			Consolidated
Sources
	Net income	$	41		$	16		$	(16	)	$	41
	Depreciation		86			17						103
	Asset sales		4			80						84
	Change in working capital		(192	)		(8	)		7			(193	)
			(61	)		105			(9	)		35
Uses
	Capital spend		(72	)		(5	)		1			(76	)
	Dividends		(1	)								(1	)
	Net changes in other accounts		(8	)		(2	)		8			(2	)
			(81	)		(7	)		9			(79	)
October 2001 restructuring cash impact
	Cash payments		(44	)								(44	)
	Proceeds from asset sales		20									20
			(24	)		—			—			(24	)
Cash change in net debt		$	(166	)	$	98		$	—		$	(68	)
Analysis of components of net debt:
	Net change in short term debt	$	(157	)	$	70		$			$	(87	)
	Payments on long term debt					6						6
	Change in cash		(9	)		22						13
Cash change in net debt			(166	)		98			—			(68	)
	Non-cash changes in net debt		(8	)								(8	)
Total changes in net debt		$	(174	)	$	98		$	—		$	(76	)

This consolidating statement provides a reconciliation of the amounts presented for Dana with Dana Credit Corporation (DCC) on an equity basis to amounts presented for Dana Corporation on a fully consolidated basis.

Page 11

Dana Corporation
Consolidating Cash Flow Impact on Net Debt
(in millions)

		Three Months Ended March 31, 2002
		Dana
		with DCC on						Elimination			Dana
		Equity Basis			DCC			Entries			Consolidated
Sources
	Net income (loss)	$	(229	)	$	10		$	(10	)	$	(229	)
	Change in accounting for goodwill		220									220
	Net income (loss) before goodwill change		(9	)		10			(10	)		(9	)
	Depreciation		98			23						121
	Divestitures		10									10
	Change in working capital		(10	)		(3	)		(6	)		(19	)
			89			30			(16	)		103
Uses
	Capital spend		(64	)		(2	)		(9	)		(75	)
	Dividends		(1	)								(1	)
	Acquisitions
	Net changes in other accounts		(32	)		9			25			2
			(97	)		7			16			(74	)
October 2001 restructuring cash impact
	After-tax charges		37									37
	Cash payments		(39	)								(39	)
	Proceeds from asset sales		2									2
			—			—			—			—
Cash change in net debt		$	(8	)	$	37		$	—		$	29
Analysis of components of net debt:
	Net change in short term debt	$	34		$	(22	)	$			$	12
	Proceeds from long term debt		(250	)								(250	)
	Payments on long term debt		135			56						191
	Change in cash		73			3						76
Cash change in net debt			(8	)		37			—			29
	Non-cash changes in net debt		35									35
Total changes in net debt		$	27		$	37		$	—		$	64

This consolidating statement provides a reconciliation of the amounts presented for Dana with Dana Credit Corporation (DCC) on an equity basis to amounts presented for Dana Corporation on a fully consolidated basis.

Page 12

Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
Q1 — 2003
(in millions)

	External Sales				Inter-Segment Sales				EBIT						Operating PAT						Net Profit						Net Assets
	03		02		03		02		03			02			03			02			03			02			03			02
Automotive Systems Group	$	943	$	873	$	31	$	21	$	43		$	45		$	36		$	38		$	15		$	16		$	1,822		$	1,840
Automotive Aftermarket Group		513		534		4		4		25			36			15			22			2			7			1,018			1,078
Engine and Fluid Management Group		518		491		23		25		36			26			23			17			13			6			1,001			984
Heavy Vehicle Technologies and Systems Group		454		408		21		26		25			17			16			10			3			(1	)		631			685
Dana Commercial Credit																6			10			6			10			287			209
Other		14		15		1		5		(54	)		(52	)		(60	)		(65	)		(3	)		(6	)		16			25
Continuing Operations		2,442		2,321		80		81		75			72			36			32			36			32			4,775			4,821
Discontinued Operations										(7	)		(6	)		(5	)		(4	)		(5	)		(4	)
Unusual Items Excluded from Performance Measurement													(46	)		10			(37	)		10			(37	)
Effect of change in Accounting																			(220	)					(220	)
Consolidated	$	2,442	$	2,321	$	80	$	81	$	68		$	20		$	41		$	(229	)	$	41		$	(229	)	$	4,775		$	4,821
North America	$	1,780	$	1,758	$	22	$	11	$	74		$	99		$	45		$	63		$	9		$	19		$	2,979		$	3,186
Europe		430		366		20		18		27			17			25			16			16			7			1,112			1,008
South America		111		120		43		42		11			9			7			5			5			2			325			411
Asia Pacific		121		77		1				11			2			7			1			4			(1	)		164			141
Dana Commercial Credit																6			10			6			10			287			209
Other										(48	)		(55	)		(54	)		(63	)		(4	)		(5	)		(92	)		(134	)
Continuing Operations		2,442		2,321		86		71		75			72			36			32			36			32			4,775			4,821
Discontinued Operations										(7	)		(6	)		(5	)		(4	)		(5	)		(4	)
Unusual Items Excluded from Performance Measurement													(46	)		10			(37	)		10			(37	)
Effect of change in Accounting																			(220	)					(220	)
Consolidated	$	2,442	$	2,321	$	86	$	71	$	68		$	20		$	41		$	(229	)	$	41		$	(229	)	$	4,775		$	4,821
Information for Discontinued Operations		80		200		3		16																				91			373

See Notes 20 and 21 in Dana’s 2002 Annual Report for further information(WWW.Dana.Com)

FOR MORE INFORMATION
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