Dana Corporation Reports Fourth-Quarter and Full-Year Results
Aftermarket Divestiture and Related Actions Improve Balance Sheet, Cost Structure
Feb 23, 2005
TOLEDO, Ohio, Feb. 23 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) today announced its fourth-quarter and full-year 2004 results.
During the fourth quarter, Dana took a series of actions aimed at
strengthening its long-term competitiveness and repositioning the company to
better serve its global original equipment customers. These actions, which
together resulted in unusual charges of $195 million after tax, included:
- Completing the divestiture of the automotive aftermarket businesses
previously held for sale;
- Announcing two facility closures and other manufacturing realignments;
and
- Repurchasing approximately $900 million of long-term debt.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
"The aftermarket divestiture, our realignment actions, and the debt
repurchase significantly improved our balance sheet and financial flexibility.
Our efforts were recognized by two leading credit agencies, which returned us
to investment grade in December," said Dana Chairman and CEO Mike Burns. "In
addition, year-over-year sales and net income, excluding unusual items, were
both up significantly despite a challenging operating environment.
"Certainly, we're not yet where we'd like to be. But the improvements to
our balance sheet and operational performance were important steps in the
continuing transformation of Dana, and I am proud of what our people
accomplished in 2004."
Financial Summary
(in millions, except earnings 4th Quarter Full Year
per share) 2004 2003 2004 2003
Net sales $2,300 $2,050 $9,056 $7,918
Net income (loss)
Net income, excluding unusual items $62 $62 $262 $183
Divestiture gains (losses), net (50) 6 (30) 30
Realignment costs (49) - - - (54) - - -
Debt repurchase gains (losses) (96) - - - (96) 9
Net income (loss) $(133) $68 $82 $222
Income (loss) from continuing
operations $(83) $56 $95 $175
Income (loss) from discontinued
operations (50) 12 (13) 47
Net income (loss) $(133) $68 $82 $222
Diluted earnings per share
Net income, excluding unusual
items $0.41 $0.41 $1.73 $1.23
Net income (loss) $(0.89) $0.45 $0.54 $1.49
Fourth-Quarter Results
Dana posted fourth-quarter sales of $2.3 billion in 2004, compared to $2.1
billion in the same period of 2003. This increase was primarily due to new
business and strong sales to commercial vehicle customers, while favorable
currency effects added $73 million.
Including unusual charges for the aftermarket divestiture, manufacturing
realignments, and debt repurchase, Dana recorded a net loss of $133 million,
or 89 cents per share, in the quarter, compared to net income of $68 million,
or 45 cents per share, in the same period of 2003. Excluding unusual charges,
net income for the quarter was $62 million in 2004, compared to the same
amount in the fourth quarter of 2003.
Earnings in the fourth quarter were negatively impacted by the continuing
effects of higher raw material prices. Net of customer recoveries, the
increased cost of steel alone reduced earnings by $31 million after tax,
compared to the same period in 2003. Favorably impacting the 2004 results
were tax benefits that resulted primarily from the company's ability to reduce
valuation allowances provided against deferred tax assets in prior periods.
Dana Vice President and Chief Financial Officer Bob Richter explained,
"While reported income was greater than expected, this was largely due to
greater than anticipated tax benefits. More important for the long term were
the actions taken to strengthen our financial position. We improved our net
debt-to-capital ratio, excluding Dana Credit Corporation, from 47 percent at
the start of the quarter -- and 61 percent less than three years ago -- to
less than 35 percent. This improvement will be reflected in reduced interest
expense going forward. We also made an extra contribution of approximately
$200 million to our pension plans, which will reduce future expense and
contribution requirements. And, we are no longer limited by high-yield
covenants on our debt. All of this will enable us to better capitalize on
future growth opportunities."
Full-Year Results
Sales increased to $9.1 billion in 2004 from $7.9 billion in 2003,
primarily due to net new business of over $400 million, strong commercial and
off-highway vehicle markets, and favorable currency effects of $300 million.
Full-year net income was $82 million, or 54 cents per share, compared to
$222 million, or $1.49 per share, in 2003. Unusual items of $180 million in
2004 included the $195 million of charges recorded in the fourth quarter plus
$15 million of net gains reported earlier in the year. Net income in 2003
included $39 million of unusual gains on divestitures and debt repurchases.
Excluding unusual items, net income in 2004 was $262 million, or $1.73 per
share, compared to $183 million, or $1.23 per share, in 2003. The margin on
higher sales and benefits from the company's cost-reduction initiatives, as
well as tax benefits, more than offset the impact of increased raw material
costs.
"Despite very challenging industry conditions, we made good progress year
over year," said Burns. "We had to contend with increased steel costs, which
net of recoveries was $70 million after tax, mostly in the second half of
year. We also saw a small decline in North American light vehicle production.
Fortunately, we had the benefit of new business, strong commercial and off-
highway vehicle markets, and the early returns from our cost-reduction
initiatives. In particular, during 2004, we consolidated our light vehicle
business units and centralized our purchasing organization for greater buying
leverage."
2005 Outlook
"This will be another tough year for the automotive industry as well as
Dana," said Burns. "We believe North American light vehicle production will
be flat at 15.8 million units. We expect to see continuing pressure on raw
material prices and energy costs, particularly in the first half of the year.
And, as a company, we will also face the near-term challenge of replacing the
lost earnings from the automotive aftermarket businesses that were sold, as
well as the reduced earnings contribution from Dana Credit Corporation as we
continue to wind that business down.
"On the other hand, we have renewed our focus on our global original
equipment manufacturers. In fact, we already have an additional $410 million
in net new business, which comes on in 2005. And we're very optimistic about
the outlook for the commercial vehicle and off-highway markets. We're
anticipating a 13 percent increase in North American Class 8 truck production
to 293,000 units. The combination of these factors should allow us to
increase our 2005 full-year sales to $9.6 billion.
"The increased sales alone, however, will not be enough to offset the
challenges we face. So we will be relentless in pursuing our cost-reduction
objectives. We will continue to deploy lean manufacturing and value
engineering throughout the organization and streamline our administrative
processes. These efforts, along with better leverage from our consolidated
purchasing function, are expected to gain more momentum and therefore provide
greater benefit to our bottom line as the year progresses.
"We expect Dana's earnings to be lower in the first half of the year
compared to last year mainly due to higher raw material prices. Therefore,
we're anticipating first-quarter earnings of 17 to 23 cents per share. Our
ability to achieve higher earnings in the second half of the year is largely
dependent on the successful execution of our cost-reduction programs. At this
time, our full-year earnings guidance is $1.40 to $1.62 per share," added
Burns.
Quarterly Conference Call Scheduled Today at 1 p.m.
Dana will discuss its fourth-quarter and full-year results in a conference
call at 1 p.m. (EST) today. The call may be accessed via Dana's web site
( http://www.dana.com ), where it will be accompanied by a brief slide presentation,
or by dialing (800) 275-3210. Please dial into the conference five minutes
prior to the call. An audio recording of this conference call will be
available after 6 p.m. today. To access this recording, please dial
(800) 537-8823. A webcast replay of the call will be available after 6 p.m.
today and will be accessible via the Dana web site.
About Dana Corporation
Dana people design and manufacture products for every major vehicle
producer in the world. Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which collectively
produce more than 60 million vehicles every year. A leading supplier of axle,
driveshaft, engine, frame, chassis, and transmission technologies, Dana
employs 46,000 people in 28 countries. The company is based in Toledo, Ohio,
and reported sales of $9.1 billion in 2004. Dana's Internet address
is: http://www.dana.com .
Forward-Looking Statements
Certain statements contained in this presentation constitute "forward-
looking" statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements represent Dana's expectations based on
our current information and assumptions. Forward-looking statements are
inherently subject to risks and uncertainties. Dana's actual results could
differ materially from those that are anticipated or projected due to a number
of factors. These factors include: national and international economic
conditions; adverse effects from terrorism or hostilities; the strength of
other currencies relative to the U.S. dollar; increases in commodity costs,
including steel, that cannot be recouped in product pricing; our ability and
that of our customers to achieve projected sales and production levels; the
continued availability of necessary goods and services from our suppliers;
competitive pressures on our sales and pricing; the continued success of our
cost reduction and cash management programs, long-term transformation and U.S.
tax loss carryforward utilization strategies; and other factors set out in our
public filings with the Securities and Exchange Commission. Dana does not
undertake to update any forward-looking statements in this presentation.
Dana Corporation
Financial Summary (Unaudited)
(in millions, except per share amounts)
Three Months Ended December 31
2004 2003
Sales $2,300 $2,050
Income (loss) from continuing
operations $(83) $56
Income (loss) from discontinued
operations (50) 12
Net income (loss) $(133) $68
Income (loss) from continuing
operations $(83) $56
Net gains associated with DCC
asset sales (2) (9)
Loss on repurchase of notes 96
Realignment charges 49
Income from continuing
operations,
excluding unusual items $60 $47
Income (loss) from discontinued
automotive
aftermarket business $(50) $15
Losses of other discontinued
operations (3)
(50) 12
Sale of automotive aftermarket
business 52
Charges related to sales of
discontinued operations 3
Income from discontinued
operations,
excluding unusual items $2 $15
Diluted earnings per share:
Income (loss) from continuing
operations $(0.55) $0.37
Income (loss) from discontinued
operations (0.34) 0.08
Net income (loss) $(0.89) $0.45
Income from continuing
operations,
excluding unusual items $0.40 $0.31
Income from discontinued
operations,
excluding unusual items 0.01 0.10
Net income, excluding unusual
items 0.41 0.41
Unusual items (1.30) 0.04
Net income (loss) $(0.89) $0.45
Dana Corporation
Financial Summary (Unaudited)
(in millions, except per share amounts)
Year Ended December 31
2004 2003
Sales $9,056 $7,918
Income from continuing
operations $95 $175
Income (loss) from discontinued
operations (13) 47
Net income $82 $222
Income from continuing
operations $95 $175
Gain associated with the sale
of assets to a newly formed
joint venture (13)
Net gains associated with DCC
asset sales (22) (35)
Loss (gain) on repurchase of
notes 96 (9)
Realignment charges 54
Income from continuing
operations, excluding unusual
items $210 $131
Income (loss) from discontinued
automotive
aftermarket business $(13) $58
Losses of other discontinued
operations (11)
Income (loss) from discontinued
operations (13) 47
Loss on engine management sale 5
Sale of automotive aftermarket
business 65
Income from discontinued
operations, excluding unusual
items $52 $52
Diluted earnings per share:
Income from continuing
operations $0.63 $1.17
Income (loss) from
discontinued operations (0.09) 0.32
Net income $0.54 $1.49
Income from continuing
operations, excluding unusual
items $1.39 $0.88
Income from discontinued
operations, excluding unusual
items 0.34 0.35
Net income, excluding unusual
items 1.73 1.23
Unusual items (1.19) 0.26
Net income $0.54 $1.49
Dana Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Three Months Ended December 31
2004 2003
Net sales $2,300 $2,050
Revenue from lease financing
and other income (expense) (98) 36
2,202 2,086
Costs and expenses
Cost of sales 2,178 1,870
Realignment charges 66 5
Selling, general and
administrative expenses 123 128
Interest expense 53 52
2,420 2,055
Income (loss) before income
taxes (218) 31
Income tax benefit 118 15
Minority interest 1 (3)
Equity in earnings
of affiliates 16 13
Income (loss) from continuing
operations (83) 56
Income (loss) from
discontinued operations (50) 12
Net income (loss) $(133) $68
Basic earnings per share
Income (loss) from
continuing operations $(0.56) $0.37
Income (loss) from
discontinued operations (0.34) 0.08
Net income (loss) $(0.90) $0.45
Diluted earnings per share
Income (loss) from
continuing operations $(0.55) $0.37
Income (loss) from
discontinued operations (0.34) 0.08
Net income (loss) $(0.89) $0.45
Average shares outstanding -
For Basic EPS 149 148
For Diluted EPS 151 150
Dana Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Year Ended December 31
2004 2003
Net sales $9,056 $7,918
Revenue from lease financing
and other income (expense) (66) 149
8,990 8,067
Costs and expenses
Cost of sales 8,333 7,245
Realignment charges 72
Selling, general and
administrative expenses 504 520
Interest expense 217 221
9,126 7,986
Income (loss) before income
taxes (136) 81
Income tax benefit 196 49
Minority interest (8) (7)
Equity in earnings
of affiliates 43 52
Income from continuing
operations 95 175
Income (loss) from
discontinued operations (13) 47
Net income $82 $222
Basic earnings per share
Income from continuing
operations $0.64 $1.17
Income (loss) from
discontinued operations (0.09) 0.32
Net income $0.55 $1.49
Diluted earnings per share
Income from continuing
operations $0.63 $1.17
Income (loss) from
discontinued operations (0.09) 0.32
Net income $0.54 $1.49
Average shares outstanding -
For Basic EPS 149 148
For Diluted EPS 151 149
Dana Corporation
Condensed Balance Sheet (Unaudited)
(in millions)
December 31 December 31
Assets 2004 2003
Current assets
Cash and cash equivalents $634 $731
Accounts receivable
Trade 1,266 1,048
Other 444 326
Inventories 907 743
Assets of discontinued
operations 1,254
Other current assets 217 431
Total current assets 3,468 4,533
Investment in leases 281 622
Investments and other assets 3,145 2,252
Property, plant and
equipment, net 2,153 2,210
Total assets $9,047 $9,617
Liabilities and Shareholders'
Equity
Current liabilities
Notes payable $155 $493
Accounts payable 1,317 1,076
Liabilities of discontinued
operations 307
Other current liabilities 1,217 1,089
Total current
liabilities 2,689 2,965
Long-term debt 2,054 2,605
Deferred employee benefits
and other noncurrent
liabilities 1,746 1,901
Minority interest 123 96
Shareholders' equity 2,435 2,050
Total liabilities and
shareholders' equity $9,047 $9,617
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Three Months Ended December 31
2004 2003
Net income (loss) $(133) $68
Depreciation and amortization 88 100
Asset impairment 13 3
Loss (gain) on divestitures,
asset sales and note
repurchases 170 (18)
Working capital decrease
(increase) (174) 105
Other 155 (8)
Net cash flows - operating
activities 119 250
Purchases of property, plant
and equipment (122) (90)
Payments received on leases 5
Net loan repayments from
customers 2 2
Divestitures 968
Asset sales 32 76
Other (45) 14
Net cash flows - investing
activities 835 7
Net change in short-term debt (211) (104)
Proceeds from long-term debt 450
Payments on and repurchases
of long-term debt (1,052) (47)
Dividends paid (20) (9)
Other (1) 1
Net cash flows - financing
activities (834) (159)
Net change in cash and cash
equivalents 120 98
Net change in cash -
discontinued operations 2 (3)
Cash and cash equivalents -
beginning of period 512 636
Cash and cash equivalents -
end of period $634 $731
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Year Ended December 31
2004 2003
Net income $82 $222
Depreciation and amortization 361 394
Asset impairment 37 21
Loss (gain) on divestitures,
asset sales and note
repurchases 113 (47)
Working capital increase (587) (212)
Other 49 (43)
Net cash flows - operating
activities 55 335
Purchases of property, plant
and equipment (330) (305)
Payments received on leases 8 26
Net loan repayments from
customers 4 14
Divestitures 968 145
Asset sales 356 282
Other (66) 47
Net cash flows - investing
activities 940 209
Net change in short-term debt (30) (113)
Proceeds from long-term debt 455
Payments on and repurchases
of long-term debt (1,457) (272)
Dividends paid (73) (14)
Other 9 17
Net cash flows - financing
activities (1,096) (382)
Net change in cash and cash
equivalents (101) 162
Net change in cash -
discontinued operations 4 (2)
Cash and cash equivalents -
beginning of period 731 571
Cash and cash equivalents -
end of period $634 $731
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Three Months Ended December 31
2004 2003
Net sales $2,300 $2,050
Other income (expense) (121) 18
2,179 2,068
Costs and expenses
Cost of sales 2,184 1,883
Realignment charges 66 5
Selling, general and
administrative expenses 115 107
Interest expense 44 38
2,409 2,033
Income (loss) before income
taxes (230) 35
Income tax benefit 117 2
Minority interest 1 (3)
Equity in earnings
of affiliates 29 22
Income (loss) from continuing
operations (83) 56
Income (loss) from
discontinued operations (50) 12
Net income (loss) $(133) $68
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Year Ended December 31
2004 2003
Net sales $9,056 $7,918
Other income (expense) (78) 91
8,978 8,009
Costs and expenses
Cost of sales 8,361 7,293
Realignment charges 72
Selling, general and
administrative expenses 472 447
Interest expense 172 160
9,077 7,900
Income (loss) before income
taxes (99) 109
Income tax benefit (expense) 109 (20)
Minority interest (8) (7)
Equity in earnings
of affiliates 93 93
Income from continuing
operations 95 175
Income (loss) from
discontinued operations (13) 47
Net income $82 $222
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Balance Sheet (Unaudited)
(in millions)
December 31 December 31
Assets 2004 2003
Current assets
Cash and cash equivalents $619 $664
Accounts receivable
Trade 1,266 1,048
Other 445 300
Inventories 907 743
Assets of discontinued
operations 1,254
Other current assets 192 399
Total current assets 3,429 4,408
Investments and other
assets 3,337 2,580
Property, plant and
equipment, net 2,015 2,014
Total assets $8,781 $9,002
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $289 $260
Accounts payable 1,317 1,076
Liabilities of
discontinued operations 307
Other current
liabilities 1,269 1,235
Total current
liabilities 2,875 2,878
Long-term debt 1,611 2,087
Deferred employee benefits
and other noncurrent
liabilities 1,739 1,893
Minority interest 121 94
Shareholders' equity 2,435 2,050
Total liabilities and
shareholders' equity $8,781 $9,002
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Three Months Ended December 31
2004 2003
Sources
Net income (loss) $(133) $68
Depreciation 82 88
Asset sales 27 45
Divestitures 968
Working capital decrease 90 147
1,034 348
Uses
Capital spend (120) (86)
Dividends (20) (9)
Restructuring cash payments (15) (44)
Additional pension
contribution (198)
Investment in and
undistributed earnings of
equity affiliates (49) 32
Net changes in other
accounts 37 (17)
(365) (124)
Cash change in net debt $669 $224
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Year Ended December 31
2004 2003
Sources
Net income $82 $222
Depreciation 332 337
Asset sales 67 89
Divestitures 968 145
Working capital increase (261) (72)
1,188 721
Uses
Capital spend (324) (295)
Dividends (73) (14)
Restructuring cash payments (80) (136)
Additional pension
contribution (198)
Investment in and
undistributed earnings of
equity affiliates (129) (45)
Net changes in other
accounts (9) 41
(813) (449)
Cash change in net debt $375 $272
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Three Months Ended December 31, 2004
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Net sales $2,300 $ $ $2,300
Other income (expense) (121) 33 (10) (98)
2,179 33 (10) 2,202
Costs and expenses
Cost of sales 2,184 (6) 2,178
Realignment charges 66 66
Selling, general and
administrative expenses 115 11 (3) 123
Interest expense 44 10 (1) 53
2,409 21 (10) 2,420
Income (loss) before income
taxes (230) 12 - (218)
Income tax benefit 117 1 118
Minority interest 1 1
Equity in earnings
of affiliates 29 3 (16) 16
Income (loss) from continuing
operations (83) 16 (16) (83)
Loss from discontinued
operations (50) (50)
Net income (loss) $(133) $16 $(16) $(133)
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Year Ended December 31, 2004
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Net sales $9,056 $ $ $9,056
Other income (expense) (78) 59 (47) (66)
8,978 59 (47) 8,990
Costs and expenses
Cost of sales 8,361 (28) 8,333
Realignment charges 72 72
Selling, general and
administrative expenses 472 49 (17) 504
Interest expense 172 47 (2) 217
9,077 96 (47) 9,126
Loss before income taxes (99) (37) - (136)
Income tax benefit 109 87 196
Minority interest (8) (8)
Equity in earnings
of affiliates 93 7 (57) 43
Income from continuing
operations 95 57 (57) 95
Loss from discontinued
operations (13) (13)
Net income $82 $57 $(57) $82
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Three Months Ended December 31, 2003
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Net sales $2,050 $ $ $2,050
Other income 18 34 (16) 36
2,068 34 (16) 2,086
Costs and expenses
Cost of sales 1,883 (13) 1,870
Realignment charges 5 5
Selling, general and
administrative expenses 107 24 (3) 128
Interest expense 38 14 52
2,033 38 (16) 2,055
Income (loss) before income
taxes 35 (4) - 31
Income tax benefit 2 13 15
Minority interest (3) (3)
Equity in earnings
of affiliates 22 4 (13) 13
Income from continuing
operations 56 13 (13) 56
Income from discontinued
operations 12 12
Net income $68 $13 $(13) $68
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Year Ended December 31, 2003
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Net sales $7,918 $ $ $7,918
Other income 91 134 (76) 149
8,009 134 (76) 8,067
Costs and expenses
Cost of sales 7,293 (48) 7,245
Selling, general and
administrative expenses 447 101 (28) 520
Interest expense 160 61 221
7,900 162 (76) 7,986
Income (loss) before income
taxes 109 (28) - 81
Income tax benefit (expense) (20) 69 49
Minority interest (7) (7)
Equity in earnings
of affiliates 93 20 (61) 52
Income from continuing
operations 175 61 (61) 175
Income from discontinued
operations 47 47
Net income $222 $61 $(61) $222
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Condensed Consolidating Balance Sheet (Unaudited)
(in millions)
December 31, 2004
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Assets
Current assets
Cash and cash
equivalents $619 $15 $ $634
Accounts receivable
Trade 1,266 1,266
Other 445 208 (209) 444
Inventories 907 907
Other current assets 192 137 (112) 217
Total current assets 3,429 360 (321) 3,468
Investment in leases 411 (130) 281
Investments and other
assets 3,337 467 (659) 3,145
Property, plant and
equipment, net 2,015 8 130 2,153
Total assets $8,781 $1,246 $(980) $9,047
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $289 $68 $(202) $155
Accounts payable 1,317 1,317
Other current
liabilities 1,269 67 (119) 1,217
Total current
liabilities 2,875 135 (321) 2,689
Long-term debt 1,611 443 2,054
Deferred employee benefits
and other noncurrent
liabilities 1,739 316 (309) 1,746
Minority interest 121 2 123
Shareholders' equity 2,435 350 (350) 2,435
Total liabilities and
shareholders' equity $8,781 $1,246 $(980) $9,047
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC)
on an equity basis to amounts reported for Dana Corporation on
a fully consolidated basis.
Dana Corporation
Condensed Consolidating Balance Sheet (Unaudited)
(in millions)
December 31, 2003
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Assets
Current assets
Cash and cash
equivalents $664 $67 $ $731
Accounts receivable
Trade 1,048 1,048
Other 300 26 326
Inventories 743 743
Assets of discontinued
operations 1,254 1,254
Other current assets 399 212 (180) 431
Total current assets 4,408 305 (180) 4,533
Investment in leases 802 (180) 622
Investments and other
assets 2,580 559 (887) 2,252
Property, plant and
equipment, net 2,014 16 180 2,210
Total assets $9,002 $1,682 $(1,067) $9,617
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $260 $233 $ $493
Accounts payable 1,076 1,076
Liabilities of
discontinued
operations 307 307
Other current
liabilities 1,235 34 (180) 1,089
Total current
liabilities 2,878 267 (180) 2,965
Long-term debt 2,087 518 2,605
Deferred employee
benefits and other
noncurrent
liabilities 1,893 604 (596) 1,901
Minority interest 94 2 96
Shareholders' equity 2,050 291 (291) 2,050
Total liabilities and
shareholders' equity $9,002 $1,682 $(1,067) $9,617
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC)
on an equity basis to amounts reported for Dana Corporation on
a fully consolidated basis.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Three Months Ended December 31,
2004
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Sources
Net income $(133) $16 $(16) $(133)
Depreciation 82 6 88
Asset sales 27 5 32
Divestitures 968 968
Working capital decrease 90 4 14 108
1,034 31 (2) 1,063
Uses
Capital spend (120) (2) (122)
Dividends (20) (20)
Restructuring cash payments (15) (15)
Additional pension contribution (198) (198)
Investment in and undistributed
earnings of equity affiliates (49) (4) 16 (37)
Net changes in other accounts 37 (12) 43 68
(365) (18) 59 (324)
Cash change in net debt $669 $13 $57 $739
Analysis of components of
decrease in net debt:
Net change in short-term debt $(100) $17 $(57) $(140)
Net payments on long-term debt (437) (40) (477)
Change in cash - continuing
operations (132) 10 (122)
Cash change in net debt (669) (13) (57) (739)
Non-cash changes in net debt (29) (29)
Total change in net debt $(698) $(13) $(57) $(768)
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on an
equity basis to amounts presented for Dana Corporation on a fully
consolidated basis.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Year Ended December 31, 2004
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Sources
Net income $82 $57 $(57) $82
Depreciation 332 29 361
Asset sales 67 292 (3) 356
Divestitures 968 968
Working capital decrease
(increase) (261) 4 17 (240)
1,188 382 (43) 1,527
Uses
Capital spend (324) (9) 3 (330)
Dividends (73) (73)
Restructuring cash payments (80) (80)
Additional pension contribution (198) (198)
Investment in and undistributed
earnings of equity affiliates (129) (8) 57 (80)
Net changes in other accounts (9) (203) 185 (27)
(813) (220) 245 (788)
Cash change in net debt $375 $162 $202 $739
Analysis of components of decrease
in net debt:
Net change in short-term debt $256 $(13) $(202) $41
Net payments on long-term debt (676) (201) (877)
Change in cash - continuing
operations 45 52 97
Cash change in net debt (375) (162) (202) (739)
Non-cash changes in net debt (27) (26) (53)
Total change in net debt $(402) $(188) $(202) $(792)
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on an
equity basis to amounts presented for Dana Corporation on a fully
consolidated basis.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Three Months Ended December 31,
2003
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Sources
Net income $68 $13 $(13) $68
Depreciation 88 12 100
Asset sales 45 43 (12) 76
Working capital decrease 147 11 (9) 149
348 79 (34) 393
Uses
Capital spend (86) (3) (1) (90)
Dividends (9) (50) 50 (9)
Restructuring cash payments (44) (44)
Investment in and undistributed
earnings of equity affiliates 32 (4) (37) (9)
Net changes in other accounts (17) (5) 22 -
(124) (62) 34 (152)
Cash change in net debt $224 $17 $- $241
Analysis of components of decrease
in net debt:
Net change in short-term debt $(99) $(5) $ $ (104)
Net payments on long-term debt (8) (31) (39)
Change in cash - continuing
operations (115) 19 (96)
Change in cash - discontinued
operations (2) (2)
Cash change in net debt (224) (17) - (241)
Non-cash changes in net debt 8 (1) 7
Total change in net debt $(216) $(18) $- $(234)
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on an
equity basis to amounts presented for Dana Corporation on a fully
consolidated basis.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Year Ended December 31, 200
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Sources
Net income $222 $61 $(61) $222
Depreciation 337 57 394
Asset sales 89 210 (17) 282
Divestitures 145 145
Working capital decrease
(increase) (72) 3 (7) (76)
721 331 (85) 967
Uses
Capital spend (295) (12) 2 (305)
Dividends (14) (50) 50 (14)
Restructuring cash payments (136) (136)
Investment in and undistributed
earnings of equity affiliates (45) (20) 11 (54)
Net changes in other accounts 41 - 22 63
(449) (82) 85 (446)
Cash change in net debt $272 $249 $- $521
Analysis of components of decrease
in net debt:
Net change in short-term debt $(12) $(101) $ $(113)
Repurchases of long-term debt (140) (140)
Proceeds from swap settlement 18 18
Net payments on long-term debt (23) (101) (124)
Change in cash - continuing
operations (113) (47) (160)
Change in cash - discontinued
operations (2) (2)
Cash change in net debt (272) (249) - (521)
Non-cash changes in net debt (9) (34) (43)
Total change in net debt $(281) $(283) $- $(564)
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on an
equity basis to amounts presented for Dana Corporation on a fully
consolidated basis.
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Quarter Ended December 31, 2004
(in millions)
Inter-
Segment
External Sales Sales EBIT
04 03 04 03 04 03
Automotive Systems Group $1,692 $1,531 $46 $38 $61 $93
Heavy Vehicle Technologies and
Systems Group 590 499 9 17 41 37
Dana Commercial Credit
Other 18 20 1 1 (64) (58)
Continuing Operations 2,300 2,050 56 56 38 72
Discontinued Operations 19
Unusual Items Excluded from
Performance Measurement (277) (5)
Consolidated $2,300 $2,050 $56 $56 $(239) $86
North America $1,456 $1,388 $28 $22 $16 $78
Europe 487 381 37 22 41 29
South America 172 126 63 43 23 23
Asia Pacific 185 155 6 1 14 10
Dana Commercial Credit
Other (56) (68)
Continuing Operations 2,300 2,050 134 88 38 72
Discontinued Operations 19
Unusual Items Excluded from
Performance Measurement (277) (5)
Consolidated $2,300 $2,050 $134 $88 $(239) $86
Information for Discontinued
Operations 342 473 2 3
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Quarter Ended December 31, 2004
(in millions)
Operating PAT Net Profit Net Assets
04 03 04 03 04 03
Automotive Systems Group $49 $67 $12 $32 $3,100 $3,027
Heavy Vehicle Technologies
and Systems Group 25 22 10 9 676 610
Dana Commercial Credit 13 3 13 3 350 291
Other (27) (45) 25 3 41 13
Continuing Operations 60 47 60 47 4,167 3,941
Discontinued Operations 2 15 2 15
Unusual Items Excluded from
Performance Measurement (195) 6 (195) 6
Consolidated $(133) $68 $(133) $68 $4,167 $3,941
North America $11 $46 $(20) $13 $2,230 $1,478
Europe 33 24 23 15 1,224 1,021
South America 14 14 10 11 384 222
Asia Pacific 8 6 5 2 198 158
Dana Commercial Credit 13 3 13 3 350 291
Other (19) (46) 29 3 (219) 771
Continuing Operations 60 47 60 47 4,167 3,941
Discontinued Operations 2 15 2 15
Unusual Items Excluded from
Performance Measurement (195) 6 (195) 6
Consolidated $(133) $68 $(133) $68 $4,167 $3,941
Information for Discontinued
Operations
FOR MORE INFORMATION
( http://www.dana.com ) - Dial-For-Dana U.S. or Canada 800-537-8823;
OH 800-472-8810
E-Mail michelle.hards@dana.com or karen.crawford@dana.com
Dana Investor Relations 419-535-4635
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Twelve Months Ended December 31, 2004
(in millions)
Inter-
Segment
External Sales Sales EBIT
04 03 04 03 04 03
Automotive Systems Group $6,658 $5,927 $187 $149 $340 $339
Heavy Vehicle Technologies
and Systems Group 2,322 1,924 35 75 173 130
Dana Commercial Credit
Other 76 67 7 6 (228) (221)
Continuing Operations 9,056 7,918 229 230 285 248
Discontinued Operations 84 90
Unusual Items Excluded from
Performance Measurement (292) (1)
Consolidated $9,056 $7,918 $229 $230 $77 $337
North America $6,010 $5,473 $109 $88 $196 $245
Europe 1,775 1,455 127 81 141 113
South America 626 441 212 165 97 70
Asia Pacific 645 549 28 3 39 47
Dana Commercial Credit
Other (188) (227)
Continuing Operations 9,056 7,918 476 337 285 248
Discontinued Operations 84 90
Unusual Items Excluded from
Performance Measurement (292) (1)
Consolidated $9,056 $7,918 $476 $337 $77 $337
Information for Discontinued
Operations 1,949 2,153 16 14
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Twelve Months Ended December 31, 2004
(in millions)
Operating PAT Net Profit Net Assets
04 03 04 03 04 03
Automotive Systems Group $238 $242 $106 $111 $3,100 $3,027
Heavy Vehicle Technologies and
Systems Group 106 79 48 27 676 610
Dana Commercial Credit 29 21 29 21 350 291
Other (163) (211) 27 (28) 41 13
Continuing Operations 210 131 210 131 4,167 3,941
Discontinued Operations 52 52 52 52
Unusual Items Excluded from
Performance Measurement (180) 39 (180) 39
Consolidated $82 $222 $82 $222 $4,167 $3,941
North America $123 $150 $15 $30 $2,230 $1,478
Europe 105 88 72 55 1,224 1,021
South America 59 43 48 33 384 222
Asia Pacific 25 30 11 15 198 158
Dana Commercial Credit 29 21 29 21 350 291
Other (131) (201) 35 (23) (219) 771
Continuing Operations 210 131 210 131 4,167 3,941
Discontinued Operations 52 52 52 52
Unusual Items Excluded from
Performance Measurement (180) 39 (180) 39
Consolidated $82 $222 $82 $222 $4,167 $3,941
Information for Discontinued
Operations
FOR MORE INFORMATION
( http://www.dana.com ) - Dial-For-Dana U.S. or Canada 800-537-8823;
OH 800-472-8810
E-Mail michelle.hards@dana.com or karen.crawford@dana.com
Dana Investor Relations 419-535-4635
SOURCE Dana Corporation
Web Site: http://www.dana.com
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