INCOME DOWN

TOLEDO -- Dana Corporation reported a steep drop in net income for the first quarter of 1991, going down to $2.1 million from $23.1 million in 1990. Net income per common share went from 56 cents to five cents.

Chairman Southwood J. Morcott said the state of U.S. and global economies and the general decline in the automotive market was the primary reason for the drop in income.

"Our outlook for the second quarter remains guarded," he said, noting the Big Three automakers expect their second quarter production will sink to its lowest level in 33 years.

Dana has incorporated several programs to reduce costs. It reduced the number of employees in its North American operations by 5,000 people from the peak at the end of 1988.

Dana sold its aerospace industry subsidiary Beaver Precision Products during the first quarter and its Diamond Financial Holdings Inc. subsidiary spun off three subsidiaries.

The company operates a parts manufacturing plant in Cape Girardeau in the Six-Thirty Industrial Park.