Dana Posts Record Third-Quarter Sales, Profits; Dana Commercial Credit Earns Malcolm Baldrige Award
Oct 21, 1996
TOLEDO, Ohio, Oct. 21 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today
posted record third-quarter sales and profits.
Third quarter sales of $1.82 billion were up 5 percent compared to the
third quarter of 1995, while net income increased 7 percent to $65.2 million.
International sales increased 10 percent, while U.S. sales were up 3 percent.
Earnings per share were 64 cents, up from 60 cents during the third quarter of
1995.
Dana's nine-month consolidated sales were $5.81 billion, up 3 percent
compared to the same period last year. Income for the first three quarters of
1996 was $235.4 million, an increase of 13 percent over the initial nine
months of 1995.
The company's solid financial results were underscored by the recent news
that Dana's leasing operation, Dana Commercial Credit Corporation, earned the
1996 Malcolm Baldrige National Quality Award. Dana Commercial Credit became
just the sixth company honored in the award's service category, joining
companies such as AT&T, Federal Express, GTE and Ritz-Carlton.
"Dana's continued strong financial performance is reflective of our
quality products and processes," said Chairman Southwood J. Morcott. "It is
also the result of Dana's worldwide efforts to locate where our customers are
pursuing growth opportunities and expand our core product sales."
"Our goal is to increase international sales to 50 percent of our total by
the year 2000," he added. "When you consider that 21 of our 24 acquisitions
and joint ventures over the past three-and-a-half years involve companies
based outside the U.S., you can see just how committed Dana is to global
growth and supporting our customers around the world."
Strong worldwide sales of light trucks and sport utility vehicles continue
to be a key factor in offsetting weak U.S. demand for heavy trucks. Dana's
year-to-date sales of light truck components (for sport utility vehicles,
pickup trucks and vans) to original equipment manufacturers were up solidly
over the company's record performance in 1995.
Additionally, year-to-date sales to manufacturers of mobile off-highway
vehicles and passenger cars were up 10 percent each, while Dana's distribution
business grew by 10 percent internationally and 5 percent overall.
In August, Dana announced that it had signed a letter of intent to acquire
SPX Corporation's worldwide Sealed Power brand piston ring and cylinder
business for $235 million. Contingent on due diligence review and approval by
regulatory agencies and the companies' boards, the acquisition would encompass
the SPX Sealed Power Division, Sealed Power Europe, and ownership in various
joint ventures in Mexico and the United States.
Dana also continued to earn significant business worldwide. In Brazil,
Dana has formed a joint venture with brake manufacturer Freios Varga S.A. to
supply front suspension modules and rear axles for the Volkswagen Golf.
Dana's Wix Filtration Products Group and German filter maker Helsa-Werke
have formed a joint venture to produce filtration products for several North
American markets. And, in Canada, Dana has been named the sole supplier of
automotive filters to UAP, Inc., Canada's leading distributor to the
automotive aftermarket.
Today, Dana's Board of Directors approved a quarterly dividend of
$0.25 per share payable December 13, 1996, to shareholders of record as of
November 29, 1996. This will mark Dana's 236th consecutive dividend (dating
back to 1936) without a missed or reduced payment.
Dana Corporation is a global leader in the engineering, manufacturing and
distribution of products and systems for the vehicular, industrial and mobile
off-highway markets. Its core products are axles, driveshafts, structural
components (frames), sealing products and filtration products. Founded in
1904 and based in Toledo, Ohio, Dana operates facilities in 29 countries with
more than 45,000 people. Its 1995 sales were $7.6 billion. Named in 1995 by
Financial World magazine as one of the "Best 100 Growth Companies," Dana is
noted for its style of management and its commitment to innovation. It has
38 product research and development centers worldwide. Dana also owns Dana
Credit Corporation, a leading provider of lease financing services. The
internet address for Dana's home page is http://www.dana.com.
(in millions, except
per share amounts)
Three Months Ended September 30
1995 1996
Sales $ 1,727.1 $ 1,815.8
Net Income 60.9 65.2
Net Income Per Common Share $0.60 $0.64
Average Shares Outstanding 101.3 101.7
Nine Months Ended September 30
1995 1996
Sales $ 5,620.3 $ 5,809.0
Net Income 209.2 235.4
Net Income Per Common Share $2.07 $2.32
Average Shares Outstanding 101.3 101.7
Dana Corporation
Statement of Income
September 30, 1996
(in millions, except per share amounts)
Three Months Ended September 30
1995 1996
Net Sales $ 1,727.1 $ 1,815.8
Revenue from Lease Financing
and Other Income 42.0 48.7
Total 1,769.1 1,864.5
Costs and Expenses
Cost of Sales 1,458.5 1,536.0
Selling, General and
Administrative Expenses 169.9 179.5
Interest Expense 38.4 40.9
Total 1,666.8 1,756.4
Income Before Income Taxes 102.3 108.1
Estimated Taxes on Income (38.0) (36.4)
Minority Interest (7.2) (10.1)
Equity in Earnings
of Affiliates 3.8 3.6
Net Income $ 60.9 $ 65.2
Net Income Per Common Share $0.60 $0.64
Average Number of Shares
Outstanding 101.3 101.7
Dana Corporation
Statement of Income
September 30, 1996
(in millions, except per share amounts)
Nine Months Ended September 30
1995 1996
Net Sales $ 5,620.3 $ 5,809.0
Revenue from Lease Financing
and Other Income 136.6 161.2
Total 5,756.9 5,970.2
Costs and Expenses
Cost of Sales 4,746.9 4,913.3
Selling, General and
Administrative Expenses 505.9 551.5
Interest Expense 107.5 116.4
Total 5,360.3 5,581.2
Income Before Income Taxes 396.6 389.0
Estimated Taxes on Income (154.5) (139.8)
Minority Interest (27.6) (25.1)
Equity in Earnings (Losses)
of Affiliates (5.3) 11.3
Net Income $ 209.2 $ 235.4
Net Income Per Common Share $2.07 $2.32
Average Number of Shares
Outstanding 101.3 101.7
Dana Corporation
Condensed Balance Sheet
September 30, 1996
(in millions)
December 31 September 30
Assets 1995 1996
Cash and Marketable Securities $ 66.6 $ 116.5
Accounts Receivable 1,081.6 1,160.2
Inventories 874.8 910.0
Lease Financing 1,004.9 1,082.7
Investments and Other Assets 1,016.7 971.7
Property, Plant & Equipment, Net 1,649.5 1,750.0
Total Assets $ 5,694.1 $ 5,991.1
Liabilities and Shareholders' Equity
Accounts Payable and Other
Liabilities $ 1,173.0 $ 1,199.7
Short-Term Debt 791.4 841.0
Long-Term Debt 1,315.1 1,364.9
Deferred Employee Benefits 1,096.2 1,096.2
Minority Interest 153.8 171.1
Shareholders' Equity 1,164.6 1,318.2
Total Liabilities and
Shareholders' Equity $ 5,694.1 $ 5,991.1
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Statement of Income
September 30, 1996
(in millions)
Three Months Ended September 30
1995 1996
Net Sales $ 1,726.5 $ 1,815.8
Other Income 1.7 2.2
Total 1,728.2 1,818.0
Costs and Expenses
Cost of Sales 1,462.9 1,540.2
Selling, General and
Administrative Expenses 149.5 156.1
Interest Expense 19.9 21.5
Total 1,632.3 1,717.8
Income Before Income Taxes 95.9 100.2
Estimated Taxes on Income (36.6) (34.7)
Minority Interest (7.2) (10.1)
Equity in Earnings
of Affiliates 8.8 9.8
Net Income $ 60.9 $ 65.2
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Statement of Income
September 30, 1996
(in millions)
Nine Months Ended September 30
1995 1996
Net Sales $ 5,619.1 $ 5,809.0
Other Income 15.8 21.9
Total 5,634.9 5,830.9
Costs and Expenses
Cost of Sales 4,759.5 4,928.6
Selling, General and
Administrative Expenses 442.2 483.9
Interest Expense 54.4 61.2
Total 5,256.1 5,473.7
Income Before Income Taxes 378.8 357.2
Estimated Taxes on Income (150.5) (128.7)
Minority Interest (27.6) (25.1)
Equity in Earnings
of Affiliates 8.5 32.0
Net Income $ 209.2 $ 235.4
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Balance Sheet
September 30, 1996
(in millions)
December 31 September 30
Assets 1995 1996
Current Assets
Cash and Marketable Securities $ 54.9 $ 114.1
Accounts Receivable 1,098.4 1,184.0
Inventories 874.8 910.0
Other Current Assets 132.5 122.1
Total Current Assets 2,160.6 2,330.2
Property, Plant & Equipment, Net 1,486.4 1,568.5
Investments and Other Assets 941.0 945.4
Total Assets $ 4,588.0 $ 4,844.1
Liabilities and Shareholders' Equity
Accounts Payable and Other
Current Liabilities $ 1,093.0 $ 1,082.1
Notes Payable 515.4 520.7
Long-Term Debt 533.7 614.1
Deferred Employee Benefits
and Other Noncurrent Liabilities 1,127.5 1,137.9
Minority Interest 153.8 171.1
Shareholders' Equity 1,164.6 1,318.2
Total Liabilities and
Shareholders' Equity $ 4,588.0 $ 4,844.1
Dana Credit Corporation
(A Wholly-Owned Subsidiary of Dana Corporation)
Statement of Income
September 30, 1996
(in millions)
Three Months Ended September 30
1995 1996
Lease Financing $ 39.2 $ 42.7
Other Income 8.8 13.4
Total 48.0 56.1
Interest Expense 16.4 19.5
General and Administrative
Expenses 27.1 28.6
Total 43.5 48.1
Income Before Income Taxes 4.5 8.0
Estimated Taxes on Income (0.7) (1.7)
Equity in Earnings of Affiliates 1.2 0.4
Net Income $ 5.0 $ 6.7
Dana Credit Corporation
(A Wholly-Owned Subsidiary of Dana Corporation)
Statement of Income
September 30, 1996
(in millions)
Nine Months Ended September 30
1995 1996
Lease Financing $ 112.2 $ 126.6
Other Income 29.4 47.7
Total 141.6 174.3
Interest Expense 46.1 55.4
General and Administrative
Expenses 79.5 87.1
Total 125.6 142.5
Income Before Income Taxes 16.0 31.8
Estimated Taxes on Income (3.4) (11.1)
Equity in Earnings of Affiliates 3.7 1.9
Net Income $ 16.3 $ 22.6
Dana Credit Corporation
(A Wholly-Owned Subsidiary of Dana Corporation)
Balance Sheet
September 30, 1996
(in millions)
December 31 September 30
Assets 1995 1996
Cash $ 11.5 $ 2.5
Lease Financing 1,153.5 1,239.5
Loans Receivable and Other Assets 221.7 294.0
Total Assets $ 1,386.7 $ 1,536.0
Liabilities and Shareholder's Equity
Short-Term Debt $ 371.7 $ 461.2
Long-Term Debt 600.7 609.9
Other Liabilities and
Accrued Expenses 74.3 84.9
Deferred Income Taxes 235.4 262.7
Shareholder's Equity 104.6 117.3
Total Liabilities and
Shareholder's Equity $ 1,386.7 $ 1,536.0
SOURCE Dana Corporation
CONTACT: Gary Corrigan, Director-Corporate Communications, of Dana
Corporation, 419-535-4813