TOLEDO, Ohio (Oct. 22, 2004) — Dana’s heavy vehicle business fared much better than the component supplier’s automotive division in the third quarter, the company reports.

Raw material price increases didn’t affect the heavy vehicle unit as harshly, as sales went up 17 per cent — up $562 million, compared with $471 million a year ago. The company said it’s made some business wins by being able to step in and replace other suppliers on certain products.

However, steel prices and the reversal of a tax accrual hurt Dana Corp.’s automotive division, which was down 34 per cent.

The company says steel prices — up $13 million in the third quarter — are squeezing margins. Across all of its units, steel costs were $22 million for the quarter. Scrap metal prices jumped to $412 a ton from $250 at the end of the second quarter.

“We are not content to play the victim,” Mike Burns, chairman, chief executive and president of Dana, said during a conference call with media. “We have a business to run, and we will do that regardless of external factors.”

Dana says it’s working to aggressively control raw material prices by negotiating leveraged purchases, participating in programs through the automakers where the supplier buys steel directly from the automaker, and working to re-engineer parts so they can be made cheaper.

— from Associated Press