News of November 2, 1999
Page 4 of 4
Corporation Chairman Announces Retirement in April 2000
|Toledo, Ohio - Dana Corporation Chairman Southwood J. "Woody"
Morcott announced today that he will retire from the company, effective April 30, 2000.
Morcott will end nearly 37 years of service -- the last 10 as chairman -- with the
automotive supplier. He is expected to be succeeded by Joseph M. Magliochetti, a 33-year
Dana veteran who currently serves as president and chief executive officer.
elected chairman of Dana in 1990 and served as chief executive officer from 1989 to 1999.
During his tenure, he guided the company through the worst recession since World War II
while keeping the company profitable and maintaining the dividend -- which has not been
missed or reduced since 1936.
Under his leadership, Dana has more than doubled in size from a company with less than
$5 billion in sales to a company expecting sales of more than $13 billion in 1999. The
company has reported record sales each year since 1993 and record profits every year since
1992. In the 1990s, the company's sales have had a compound annual growth rate of more
than 12 percent on a non- pooled basis. Net income, likewise, has experienced a compound
annual growth rate of 59 percent, on a non-pooled basis, since the 1991 recession.
Since Morcott was named chairman, the company has completed about 50 acquisitions and
joint ventures. Recent major acquisitions include those of the former Echlin Inc.; the
Glacier Vandervell and Clevite businesses from Federal-Mogul Corporation; the heavy axle
and brake operations of Eaton Corporation; Clark-Hurth Components, a division of the
Ingersoll-Rand Company; and the Sealed Power Division of SPX Corporation. Morcott has also
led the company through a strategic transformation in which it focused on core businesses,
selling non-strategic or under-performing businesses with annual sales of some $2 billion
since 1997. Morcott's strategic direction has moved the company from a components supplier
to a systems supplier to a supplier of integrated systems. The most dramatic examples of
this are the Rolling Chassis(TM) module Dana manufactures for DaimlerChrysler in Brazil
and the full chassis systems Dana assembles for Mack Trucks, Inc., and Western Star Trucks
Recognized as the 1998 Automotive Industry Leader of the Year, Morcott's service on
behalf of the automotive industry extends beyond his work at Dana. He was a founding
member and the first co-chairman of the Automotive-Supplier Government Action Council,
where he worked with other industry leaders on important issues such as passage of NAFTA
and the opposition to higher CAFE standards. He has also worked on behalf of the industry
as chairman of the board of trustees of the Manufacturers' Alliance, as a member of the
U.S.- Japan Business Council, and as a member of the U.S. Business Roundtable. Morcott
also serves as a member of the boards of directors of CSX Corporation; Johnson Controls,
Inc.; and Phelps Dodge Corporation.
Corporation Reports Record Third Quarter, Nine Month Results
|SOUTHFIELD, Mich. - Lear Corporation reported record third quarter
and nine month sales, operating income and net income for fiscal 1999. Highlights for the
1999 third quarter included:
* Sales up 57% to $3.0 billion
* Earnings per share up 81% to $0.58
* Awarded Peugeot seating contract
* Awarded electronic distribution contracts for 2 North American programs
* IndustryWeek Magazine selects Lear as one of "The World's 100 Best Managed
Net income for the quarter ended October 2, 1999 increased 82 percent to $39.3 million,
or $.58 per share, compared with earnings of $21.6 million, or $.32 per share, last year.
Operating income for the third quarter of 1999 increased 120 percent to $151.7 million,
from $69.1 million in the third quarter of 1998. Net sales for the third quarter of 1999
rose approximately 57 percent to $3.0 billion from $1.9 billion last year. The increase
was primarily attributable to both incremental revenues from Lear's recent acquisitions,
as well as internal growth.
Geographically, approximately 26 percent of the current quarter's $1.1 billion sales
increase was attributable to Lear's operations outside of the U.S. and Canada. 1999 third
quarter sales in Europe increased 45 percent to $920 million, while sales in other world
regions increased 3 percent to $211 million. U.S. and Canadian sales in the 1999 third
quarter rose 73 percent to over $1.9 billion.
Net income for the nine months ended October 2, 1999 increased 22 percent to $164.4
million, or $2.42 per share, compared with earnings of $134.6 million, or $1.97 per share,
last year. Operating income for the first nine months of 1999 advanced 45 percent to
$462.9 million, from $319.4 million in last year's comparable period. Net sales for the
nine months ended October 2, 1999 rose 46 percent to $9.0 billion from $6.2 billion in
last year's comparable period. The increase was primarily attributable to incremental
revenues from Lear's recent acquisitions, as well as internal growth.
Geographically, approximately 30 percent of the sales increase for the first nine
months of 1999 was attributable to Lear's operations outside of the U.S. and Canada. For
the first nine months of 1999, European sales increased 45 percent to $2.8 billion, while
sales in other world regions decreased approximately 5 percent to $575 million, primarily
due to the weak economic situation in South America. U.S. and Canadian sales for the first
nine months of 1999 increased approximately 54 percent to $5.6 billion.
to Divest Seat Adjusting Systems Business / Light Vehicle Systems Focused on Two-Pronged
|Troy, Mich. - Meritor Automotive, Inc. announced that it has signed a
definitive agreement to sell its Light Vehicle Systems (LVS) seat adjusting systems
business, to Dura Automotive Systems, Inc., headquartered in Minneapolis, Minn., for cash
consideration of $130 million. The companies expect the transaction, which is subject to
customary regulatory approvals, to be completed by the end of 1999. Meritor plans to use
the proceeds from the sale for general corporate purposes, including growth initiatives
and the repurchase of stock as part of its announced stock buy-back program.
Chairman and Chief Executive, Larry D. Yost said: "Today's action is part of our
balanced global growth strategy that emphasizes an ongoing review of existing businesses;
organic growth through increased content per vehicle; and expansion through acquisitions,
joint ventures, marketing alliances and technological advances. These strategies will
better position us to both outperform our competitors in meeting the needs of our diverse,
global customer base, and enhance shareowner value. Meritor will continue to strengthen
and grow its businesses -- LVS, Heavy Vehicle Systems and Aftermarket -- to ensure balance
and diversity in our product offering, customer base and geographic presence, all which
dampen the effect of industry cyclicality."
Meritor's seat adjusting systems operations, with fiscal 1999 sales of approximately
$130 million, develops and supplies the industry's leading seat makers with manual and
two-, four- and six-way powered seat adjusting systems. The business employs approximately
500 people at plants in Bracebridge, Ontario, Canada, and Gordonsville, Tenn. Dura
Automotive Systems makes driver control systems, engineered components and cable-related
products for automakers around the globe.
Continues to Build Leadership in Asia-Pacific Region
|Yokohama, Japan - With a new multi-year partnership with Mitsuboshi
Belting Ltd., a prominent automotive belt and composites manufacturer in Kobe, Japan,
Visteon and Mitsuboshi will jointly develop, manufacture and market molded components for
cockpit modules. The alliance strengthens Visteon's product development and production
capabilities in the region and offers a strong strategic fit with a local supplier.
the next five years, Visteon and Mitsuboshi will jointly develop components such as
instrument panels that can be integrated into Visteon's superintegrated cockpit modules.
The partnership offers Visteon a regional manufacturing base from which to ship the highly
integrated modules to Japanese and other Asia-Pacific vehicle manufacturers.
Visteon recently announced it had acquired Duck Yang Industry Co., Ltd., and instrument
panel manufacturers in South Korea, with similar intentions. Mistuboshi's components will
be manufactured at plants in Nagoya and Kanagawa Prefecture. The Chemical and Automotive
Components Divisions of Mitsuboshi Belt operates the plants. Visteon will integrate the
Mitsuboshi components into its cockpit modules before shipping them to customers.
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