Document BrJXr6ENb9gaEGQoE04j5GrE

Dana Corporation Page 13 of 176 Table of Contents income was $221, as compared to consolidated net income of $222 in 2003. These amounts include $37 of equity in earnings of non-U.S. affiliates. You can find more information about our regional operating results in "Note 22. Business Segments" on pages 74 -- 80 of this annual report on Form 10-K. Customer Dependence We have thousands of customers around the world and have developed long-standing business relationships with many of them. Ford and DaimlerChrysler were the only individual customers accounting for 10% or more of our consolidated sales in 2003. We have been supplying products to these companies and their subsidiaries for many years. As a percentage of total sales, sales to Ford were 27%, 26% and 26% in 2003, 2002 and 2001, and sales to DaimlerChrysler were 10%, 14% and 14%. Loss of all or a substantial portion of our sales to Ford, DaimlerChrysler or other large volume customers would have a significant adverse effect on our financial results until such lost sales volume could be replaced. There would be no assurance, in such event, that the lost volume would be replaced. Ford, DaimlerChrysler and some of our other customers periodically ask us to reduce the prices of our products. We discuss cost saving measures with these customers on an ongoing basis. In light of these requests, we cannot assure that we will be able to maintain or improve our historical levels of profitability. Products The following table presents the relative sales of our continuing operations by core product for the last three years: Percentage of Consolidated Sales 2003 2002 2001 Types of Products Axle Driveshaft Fluid systems Structural Bearings and sealing Other Engine 43% 44% 43% 13 13 13 11 11 11 11 10 9 10 9 10 787 Other 95 95 93 557 100% 100% 100% We do not consider our leasing service revenue to be sales and none of our other products individually accounted for 10% of sales in these periods. Material Source and Supply http://www.sec.gOv/Archives/edgar/data/26780/000095015204001384/105571ael0vk.htm 8/1/2004