Dana Corporation Reports Significantly Improved Operational Results
Jul 21, 2004
Net Income Also Includes Net Gains Triggered by Transactions
TOLEDO, Ohio, July 21 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) today announced that its 2004 second-quarter sales were
$2.3 billion, compared to $2.0 billion during the same period last year. Net
income for the quarter (including $33 million of unusual net gains) totaled
$108 million, or 72 cents per share. This compares to net income (including
$5 million of unusual net gains) of $52 million, or 35 cents per share, for
the period in 2003.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
"We are pleased to have delivered another solid quarter of operational
performance with net income, exclusive of unusual items, up 60 percent," said
Dana Chairman and CEO Mike Burns. "At the same time, we're far from satisfied
and continue to pursue greater focus, integration, and productivity in line
with our commitment to meeting the needs of our global customers."
Second-quarter sales were up 16 percent over the same period last year
with the majority of the increase being driven by our new business programs
and higher production volumes in the principal markets served by Dana,
particularly the North American heavy-truck sector.
"Our solid sales growth contributed to stronger bottom-line results,"
Mr. Burns said. "In addition, we continued to see growth in our gross margin
- both year-over-year and sequentially by quarter - as we achieved further
cost efficiencies and made progress in addressing the launch costs associated
with our structures programs. It's important to note that these improvements
were achieved in spite of the higher cost of steel and certain other raw
materials that we experienced during the quarter.
"We are also enthused by the positive strategic and financial flexibility
that we will have when we complete the sale of our automotive aftermarket
business," Mr. Burns said. On July 9, Dana announced that it had reached a
definitive agreement to sell its automotive aftermarket business to The
Cypress Group for approximately $1.1 billion in cash.
Transactions Trigger Recognition of $33 Million of Unusual Net Gains
The $33 million of unusual net gains included in the second quarter of
2004 included the recognition of $38 million in anticipated tax benefits
triggered by the sale of the automotive aftermarket business and transactions
that are part of the continuing program to divest assets of Dana Credit
Corporation (DCC), which are expected to close during the third quarter. This
was partially offset by $5 million of transaction-related expenses.
Dana Vice President and Chief Financial Officer Bob Richter explained,
"These transactions are expected to generate capital gains. We had capital
loss carryforwards from prior periods that were fully reserved. Since we now
expect to be able to use the carryforwards to offset the gains, accounting
rules require us to recognize the anticipated tax benefit by releasing a
portion of the reserve at this time.
"While we're happy to benefit from the additional income, we're pleased
that even without these unusual items, we still achieved second-quarter net
profit of $75 million, or 50 cents per share, which is up substantially over
the prior year."
First-Half Results Significantly Improved
Dana's six-month consolidated sales were $4.6 billion, up from
$4.0 billion during the same period last year. Net income during the first
half of 2004 was $171 million, or $1.14 per share, including $35 million in
unusual net gains. This compares to net income of $93 million, or 63 cents
per share, including $15 million in unusual net gains during the initial six
months of 2003.
"Excluding our unusual items and the results of businesses held for sale,
our net income from continuing operations improved by more than 60 percent
during the first half of 2004, compared to the same period last year,"
Mr. Burns said. "Again, this improvement was largely the result of new
business and strong production volumes in our principal markets."
Full-Year EPS Guidance
"While we are optimistic about production levels in the North American
heavy-truck sector, the second half of the year will not be without its
challenges," Mr. Burns said. "We will continue to be impacted by many of the
challenges that we experienced during the first six months of the year,
particularly higher raw material costs. In addition, rising North American
light-vehicle inventory levels also point to the potential for reductions in
production schedules in that sector during the second half of the year.
"So even though we will continue to consolidate the results of the
automotive aftermarket business until the sale closes, we are not changing our
earnings guidance of at least $1.90 per share, excluding unusual items, in
2004."
Quarterly Conference Call Scheduled Today at 11 a.m.
Dana will discuss its second-quarter results in a conference call at
11 a.m. (EDT) 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 2 p.m. today. To access this recording, please dial
(800) 537-8823. A webcast replay of the call will be available after 4 p.m.
today and will be accessible via the Dana web site.
Dana Corporation is a global leader in the design, engineering, and
manufacture of value-added products and systems for automotive, commercial,
and off-highway vehicles. Delivering on a century of innovation, the company's
continuing operations employ approximately 45,000 people worldwide dedicated
to advancing the science of mobility. Founded in 1904 and based in Toledo,
Ohio, Dana operates technology, manufacturing, and customer-service facilities
in 30 countries. Sales from continuing operations totaled $7.9 billion in
2003. Dana's Internet address is: http://www.dana.com .
Forward-Looking Statements
Certain statements contained in this release 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; the cyclical nature of the
global vehicular industry; changes in business relationships with our major
customers and in the timing, size and continuation of their and our programs;
the ability of our customers and suppliers to achieve their projected sales
and production levels; competitive pressures on our sales and pricing;
increases in production or material costs that cannot be recouped in product
pricing; the continued success of our cost reduction and cash management
programs and of our long-term transformation strategy for the company; the
success and timing of the divestiture of the automotive aftermarket business;
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 release.
Dana Corporation
Financial Summary (Unaudited)
(in millions, except per share amounts)
Three Months Ended June 30
Percent
2004 2003 Change
Sales $2,331 $2,012 16%
Income from continuing
operations $73 $46 59%
Income from discontinued
operations 35 6 483%
Net income $108 $52 108%
Income from continuing
operations $73 $46 59%
Reduction in deferred tax
allowance related to
DCC asset sales (18) (9)
Expenses relating to DCC sale
activity 2 2 0%
Income from continuing
operations, excluding
unusual items $57 $39 46%
Income from automotive
aftermarket business $35 $9 289%
Loss from engine management
business (3)
Income from discontinued
operations 35 6 483%
Loss on engine management sale 2
Reduction in deferred tax
allowance related to
aftermarket sale (20)
Expenses relating to sale of
aftermarket 3
Income from discontinued
operations, excluding
unusual items $18 $8 125%
Diluted earnings per share:
Income from continuing
operations $0.49 $0.30 63%
Income from discontinued
operations 0.23 0.05 360%
Net income $0.72 $0.35 106%
Income from continuing
operations, excluding
unusual items $0.38 $0.26 46%
Income from discontinued
operations, excluding
unusual items 0.12 0.05 140%
Net income, excluding unusual
items 0.50 0.31 61%
Unusual items 0.22 0.04 450%
Net income $0.72 $0.35 106%
Dana Corporation
Financial Summary (Unaudited)
(in millions, except per share amounts)
Six Months Ended June 30
Percent
2004 2003 Change
Sales $4,642 $3,988 16%
Income from continuing
operations $123 $82 50%
Income from discontinued
operations 48 11 336%
Net income $171 $93 84%
Income from continuing
operations $123 $82 50%
Gains associated with
DCC asset sales (20) (19) 5%
Expenses relating to DCC sale
activity 2 2
Income from continuing
operations, excluding
unusual items $105 $65 62%
Income from automotive
aftermarket business $48 $19 153%
Loss from engine management
business (8)
Income from discontinued
operations 48 11 336%
Loss on engine management sale 2
Reduction in deferred tax
allowance related to
aftermarket sale (20)
Expenses relating to sale of
aftermarket 3
Income from discontinued
operations, excluding
unusual items $31 $13 138%
Diluted earnings per share:
Income from continuing
operations $0.82 $0.55 49%
Income from discontinued
operations 0.32 0.08 300%
Net income $1.14 $0.63 81%
Income from continuing
operations, excluding
unusual items $0.70 $0.44 59%
Income from discontinued
operations, excluding
unusual items 0.21 0.09 133%
Net income, excluding unusual
items 0.91 0.53 72%
Unusual items 0.23 0.10 130%
Net income $1.14 $0.63 81%
Dana Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Three Months Ended June 30
2004 2003
Net sales $2,331 $2,012
Revenue from lease financing
and other income 25 43
2,356 2,055
Costs and expenses
Cost of sales 2,101 1,838
Selling, general and
administrative expenses 126 141
Interest expense 51 55
2,278 2,034
Income before income taxes 78 21
Income tax benefit (expense) (6) 9
Minority interest (3) (1)
Equity in earnings of affiliates 4 17
Income from continuing operations 73 46
Income from discontinued operations 35 6
Net income $108 $52
Basic earnings per share
Income from continuing operations $0.49 $0.30
Income from discontinued operations 0.23 0.05
Net income $0.72 $0.35
Diluted earnings per share
Income from continuing operations $0.49 $0.30
Income from discontinued operations 0.23 0.05
Net income $0.72 $0.35
Average shares outstanding -
For Basic EPS 149 148
For Diluted EPS 151 149
Dana Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Six Months Ended June 30
2004 2003
Net sales $4,642 $3,988
Revenue from lease financing
and other income 39 72
4,681 4,060
Costs and expenses
Cost of sales 4,206 3,639
Selling, general and
administrative expenses 262 277
Interest expense 102 114
4,570 4,030
Income before income taxes 111 30
Income tax benefit (expense) (3) 21
Minority interest (6) (3)
Equity in earnings of affiliates 21 34
Income from continuing operations 123 82
Income from discontinued operations 48 11
Net income $171 $93
Basic earnings per share
Income from continuing operations $0.83 $0.55
Income from discontinued operations 0.32 0.08
Net income $1.15 $0.63
Diluted earnings per share
Income from continuing operations $0.82 $0.55
Income from discontinued operations 0.32 0.08
Net income $1.14 $0.63
Average shares outstanding -
For Basic EPS 148 148
For Diluted EPS 150 149
Dana Corporation
Condensed Balance Sheet (Unaudited)
(in millions)
June 30 December 31
Assets 2004 2003
Current assets
Cash and cash equivalents $597 $731
Accounts receivable
Trade 1,310 1,048
Other 317 326
Inventories 747 743
Assets of discontinued operations 1,324 1,254
Other current assets 459 431
Total current assets 4,754 4,533
Investment in leases 540 622
Investments and other assets 2,286 2,252
Property, plant and equipment, net 2,086 2,210
Total assets $9,666 $9,617
Liabilities and Shareholders' Equity
Current liabilities
Notes payable $384 $493
Accounts payable 1,241 1,076
Liabilities of discontinued
operations 348 307
Other current liabilities 1,135 1,089
Total current liabilities 3,108 2,965
Long-term debt 2,508 2,605
Deferred employee benefits
and other noncurrent liabilities 1,807 1,901
Minority interest 101 96
Shareholders' equity 2,142 2,050
Total liabilities and
shareholders' equity $9,666 $9,617
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Three Months Ended June 30
2004 2003
Net income $108 $52
Depreciation and amortization 90 99
Asset impairment 1 3
Gain on divestitures and asset sales (21) (11)
Working capital decrease (increase) 58 (47)
Deferred taxes (46) (6)
Other (73) (11)
Net cash flows - operating activities 117 79
Purchases of property, plant and equipment (63) (66)
Payments received on leases 3 7
Net loan repayments from customers 1 9
Divestitures 145
Asset sales 52 75
Other (41) 3
Net cash flows - investing activities (48) 173
Net change in short-term debt 38 (184)
Payments on long-term debt (45) (37)
Dividends paid (18) (2)
Other 5 18
Net cash flows - financing activities (20) (205)
Net change in cash and cash equivalents 49 47
Net change in cash - discontinued operations 2 1
Cash and cash equivalents - beginning of period 546 584
Cash and cash equivalents - end of period $597 $632
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Six Months Ended June 30
2004 2003
Net income $171 $93
Depreciation and amortization 183 202
Asset impairment 2 9
Gain on divestitures and asset sales (25) (22)
Working capital increase (164) (284)
Deferred taxes (41) (13)
Other (71) (17)
Net cash flows - operating activities 55 (32)
Purchases of property, plant and equipment (142) (142)
Payments received on leases 6 16
Net loan repayments from customers 2 11
Divestitures 145
Asset sales 155 179
Other (40) 9
Net cash flows - investing activities (19) 218
Net change in short-term debt 153 (97)
Proceeds from long-term debt 5
Payments on long-term debt (304) (43)
Dividends paid (36) (3)
Other 10 17
Net cash flows - financing activities (172) (126)
Net change in cash and cash equivalents (136) 60
Net change in cash - discontinued operations 2 1
Cash and cash equivalents - beginning of period 731 571
Cash and cash equivalents - end of period $597 $632
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Three Months Ended June 30
2004 2003
Net sales $2,331 $2,012
Other income 13 27
2,344 2,039
Costs and expenses
Cost of sales 2,108 1,849
Selling, general and
administrative expenses 125 125
Interest expense 39 39
2,272 2,013
Income before income taxes 72 26
Income tax expense (27) (6)
Minority interest (3) (1)
Equity in earnings of affiliates 31 27
Income from continuing operations 73 46
Income from discontinued operations 35 6
Net income $108 $52
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Six Months Ended June 30
2004 2003
Net sales $4,642 $3,988
Other income 20 40
4,662 4,028
Costs and expenses
Cost of sales 4,222 3,663
Selling, general and
administrative expenses 247 241
Interest expense 77 81
4,546 3,985
Income before income taxes 116 43
Income tax expense (38) (12)
Minority interest (6) (3)
Equity in earnings of affiliates 51 54
Income from continuing operations 123 82
Income from discontinued operations 48 11
Net income $171 $93
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Balance Sheet (Unaudited)
(in millions)
June 30 December 31
Assets 2004 2003
Current assets
Cash and cash equivalents $498 $664
Accounts receivable
Trade 1,310 1,048
Other 300 300
Inventories 747 743
Assets of discontinued
operations 1,324 1,254
Other current assets 430 399
Total current assets 4,609 4,408
Investments and other assets 2,657 2,580
Property, plant and
equipment, net 1,927 2,014
Total assets $9,193 $9,002
Liabilities and Shareholders' Equity
Current liabilities
Notes payable $213 $260
Accounts payable 1,241 1,076
Liabilities of
discontinued operations 348 307
Other current liabilities 1,302 1,235
Total current liabilities 3,104 2,878
Long-term debt 2,050 2,087
Deferred employee benefits
and other noncurrent
liabilities 1,798 1,893
Minority interest 99 94
Shareholders' equity 2,142 2,050
Total liabilities and
shareholders' equity $9,193 $9,002
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Three Months Ended June 30
2004 2003
Sources
Net income $108 $52
Depreciation 82 85
Asset sales 19 19
Divestitures 145
Working capital decrease (increase) 65 (30)
274 271
Uses
Capital spend (63) (61)
Dividends (18) (2)
Restructuring cash payments (26) (20)
Deferred taxes (54) (2)
Investment in and
undistributed earnings of
equity affiliates (43) (32)
Net changes in other accounts (64) 12
(268) (105)
Cash change in net debt $6 $166
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Six Months Ended June 30
2004 2003
Sources
Net income $171 $93
Depreciation 165 171
Asset sales 33 43
Divestitures 145
Working capital increase (115) (222)
254 230
Uses
Capital spend (139) (133)
Dividends (36) (3)
Restructuring cash payments (49) (64)
Deferred taxes (50) (6)
Investment in and
undistributed earnings of
equity affiliates (64) (59)
Net changes in other accounts (31) 35
(369) (230)
Cash change in net debt $(115) $ -
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Three Months Ended June 30, 2004
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Basis DCC Entries dated
Net sales $2,331 $ $ $2,331
Other income 13 24 (12) 25
2,344 24 (12) 2,356
Costs and expenses
Cost of sales 2,108 (7) 2,101
Selling, general and
administrative expenses 125 6 (5) 126
Interest expense 39 12 51
2,272 18 (12) 2,278
Income before income taxes 72 6 - 78
Income tax benefit (expense) (27) 21 (6)
Minority interest (3) (3)
Equity in earnings
of affiliates 31 (2) (25) 4
Income from continuing operations 73 25 (25) 73
Income from discontinued operations 35 35
Net income $108 $25 $(25) $108
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)
Six Months Ended June 30, 2004
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Basis DCC Entries dated
Net sales $4,642 $ $ $4,642
Other income 20 46 (27) 39
4,662 46 (27) 4,681
Costs and expenses
Cost of sales 4,222 (16) 4,206
Selling, general and
administrative expenses 247 26 (11) 262
Interest expense 77 25 102
4,546 51 (27) 4,570
Income (loss) before income
taxes 116 (5) - 111
Income tax benefit (expense) (38) 35 (3)
Minority interest (6) (6)
Equity in earnings
of affiliates 51 4 (34) 21
Income from continuing
operations 123 34 (34) 123
Income from discontinued
operations 48 48
Net income $171 $34 $(34) $171
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 June 30, 2003
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Basis DCC Entries dated
Net sales $2,012 $ $ $2,012
Other income 27 36 (20) 43
2,039 36 (20) 2,055
Costs and expenses
Cost of sales 1,849 (11) 1,838
Selling, general and
administrative expenses 125 25 (9) 141
Interest expense 39 16 55
2,013 41 (20) 2,034
Income (loss) before income
taxes 26 (5) - 21
Income tax benefit (expense) (6) 15 9
Minority interest (1) (1)
Equity in earnings
of affiliates 27 5 (15) 17
Income from continuing operations 46 15 (15) 46
Income from discontinued operations 6 6
Net income $52 $15 $(15) $52
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)
Six Months Ended June 30, 2003
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Basis DCC Entries dated
Net sales $3,988 $ $ $3,988
Other income 40 74 (42) 72
4,028 74 (42) 4,060
Costs and expenses
Cost of sales 3,663 (24) 3,639
Selling, general and
administrative expenses 241 54 (18) 277
Interest expense 81 33 114
3,985 87 (42) 4,030
Income (loss) before income
taxes 43 (13) - 30
Income tax benefit (expense) (12) 33 21
Minority interest (3) (3)
Equity in earnings
of affiliates 54 11 (31) 34
Income from continuing operations 82 31 (31) 82
Income from discontinued operations 11 11
Net income $93 $31 $(31) $93
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)
June 30, 2004
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Assets Basis DCC Entries dated
Current assets
Cash and cash
equivalents $498 $99 $ $597
Accounts receivable
Trade 1,310 1,310
Other 300 26 (9) 317
Inventories 747 747
Assets of discontinued
operations 1,324 1,324
Other current assets 430 238 (209) 459
Total current assets 4,609 363 (218) 4,754
Investment in leases 682 (142) 540
Investments and other
assets 2,657 536 (907) 2,286
Property, plant and
equipment, net 1,927 16 143 2,086
Total assets $9,193 $1,597 $(1,124) $9,666
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $213 $171 $ $384
Accounts payable 1,241 1,241
Liabilities of
discontinued
operations 348 348
Other current
liabilities 1,302 50 (217) 1,135
Total current
liabilities 3,104 221 (217) 3,108
Long-term debt 2,050 458 2,508
Deferred employee
benefits and other
noncurrent liabilities 1,798 591 (582) 1,807
Minority interest 99 2 101
Shareholders' equity 2,142 325 (325) 2,142
Total liabilities and
shareholders' equity $9,193 $1,597 $(1,124) $9,666
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 DCC on Elimi- Dana
Equity nation Consoli-
Assets Basis DCC Entries dated
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 June 30, 2004
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Basis DCC Entries dated
Sources
Net income $108 $25 $(25) $108
Depreciation 82 8 90
Asset sales 19 36 (3) 52
Working capital decrease 65 7 12 84
274 76 (16) 334
Uses
Capital spend (63) (3) 3 (63)
Dividends (18) (18)
Restructuring cash payments (26) (26)
Deferred taxes (54) 8 (46)
Investment in and undistributed
earnings of equity affiliates (43) 27 25 9
Net changes in other accounts (64) (56) (12) (132)
(268) (24) 16 (276)
Cash change in net debt $6 $52 $ - $58
Analysis of components of
decrease in net debt:
Net change in short-term debt $38 $ - $ $38
Net payments on long-term debt 3 (48) (45)
Change in cash - continuing
operations (47) (4) (51)
Cash change in net debt (6) (52) - (58)
Non-cash changes in net debt (49) - (49)
Total change in net debt $(55) $(52) $ - $(107)
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)
Six Months Ended June 30, 2004
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Basis DCC Entries dated
Sources
Net income $171 $34 $(34) $171
Depreciation 165 18 183
Asset sales 33 125 (3) 155
Working capital increase (115) (1) 1 (115)
254 176 (36) 394
Uses
Capital spend (139) (6) 3 (142)
Dividends (36) (36)
Restructuring cash payments (49) (49)
Deferred taxes (50) 9 (41)
Investment in and undistributed
earnings of equity affiliates (64) 30 34 -
Net changes in other accounts (31) (82) (1) (114)
(369) (49) 36 (382)
Cash change in net debt $(115) $127 $ - $12
Analysis of components of increase
(decrease) in net debt:
Net change in short-term debt $183 $(30) $ $153
Net payments on long-term debt (234) (65) (299)
Change in cash - continuing
operations 166 (32) 134
Cash change in net debt 115 (127) - (12)
Non-cash changes in net debt (33) (27) (60)
Total change in net debt $82 $(154) $ - $(72)
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 June 30, 2003
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Basis DCC Entries dated
Sources
Net income $52 $15 $(15) $52
Depreciation 85 14 99
Asset sales 19 57 (1) 75
Divestitures 145 145
Working capital decrease
(increase) (30) 4 (1) (27)
271 90 (17) 344
Uses
Capital spend (61) (3) (2) (66)
Dividends (2) (2)
Restructuring cash payments (20) (20)
Deferred taxes (2) (4) (6)
Investment in and undistributed
earnings of equity affiliates (32) 11 16 (5)
Net changes in other accounts 12 20 3 35
(105) 24 17 (64)
Cash change in net debt $166 $114 $ - $280
Analysis of components of decrease
in net debt:
Net change in short-term debt $(162) $(26) $ $(188)
Proceeds from long-term debt 18 18
Debt assumed by buyer (32) (32)
Payments on long term debt (18) (12) (30)
Change in cash - continuing
operations (4) (44) (48)
Cash change in net debt (166) (114) - (280)
Non-cash changes in net debt 28 28
Total change in net debt $(138) $(114) $ - $(252)
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)
Six Months Ended June 30, 2003
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Basis DCC Entries dated
Sources
Net income $93 $31 $(31) $93
Depreciation 171 31 202
Asset sales 43 137 (1) 179
Divestitures 145 145
Working capital increase (222) (4) 6 (220)
230 195 (26) 399
Uses
Capital spend (133) (8) (1) (142)
Dividends (3) (3)
Restructuring cash payments (64) (64)
Deferred taxes (6) (7) (13)
Investment in and undistributed
earnings of equity affiliates (59) 21 32 (6)
Net changes in other accounts 35 11 (5) 41
(230) 17 26 (187)
Cash change in net debt $ - $212 $ - $212
Analysis of components of increase
(decrease) in net debt:
Net change in short-term debt $(5) $(96) $ $(101)
Proceeds from long-term debt 18 18
Debt assumed by buyer (32) (32)
Payments on long term debt (18) (18) (36)
Change in cash - continuing
operations 5 (66) (61)
Cash change in net debt - (212) - (212)
Non-cash changes in net debt 36 36
Total change in net debt $36 $(212) $ - $(176)
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)
Q2 - 2004
(in millions)
Inter-
Segment
External Sales Sales EBIT
04 03 04 03 04 03
Automotive Systems Group $1,719 $1,497 $48 $35 $109 $88
Heavy Vehicle Technologies and
Systems Group 592 499 9 20 51 30
Dana Commercial Credit
Other 20 16 1 2 (48) (53)
Continuing Operations 2,331 2,012 58 57 112 65
Discontinued Operations 30 19
Unusual Items Excluded from
Performance Measurement (8) (8)
Consolidated $2,331 $2,012 $58 $57 $134 $76
North America $1,577 $1,387 $25 $23 $80 $59
Europe 442 377 31 21 37 27
South America 153 107 50 42 27 18
Asia Pacific 159 141 13 - 10 13
Dana Commercial Credit
Other (42) (52)
Continuing Operations 2,331 2,012 119 86 112 65
Discontinued Operations 30 19
Unusual Items Excluded from
Performance Measurement (8) (8)
Consolidated $2,331 $2,012 $119 $86 $134 $76
Information for Discontinued
Operations 557 603 5 4
The performance and net assets of Clevite are now included in ASG.
See Notes 20 and 21 in Dana's 2003 Annual Report for further information
( http://WWW.Dana.Com )
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
Q2 - 2004
(in millions)
Operating PAT Net Profit Net Assets
04 03 04 03 04 03
Automotive Systems Group $72 $66 $43 $35 $2,986 $2,980
Heavy Vehicle Technologies and
Systems Group 31 19 18 5 621 643
Dana Commercial Credit 5 6 5 6 325 306
Other (51) (52) (9) (7) (50) -
Continuing Operations 57 39 57 39 3,882 3,929
Discontinued Operations 18 8 18 8
Unusual Items Excluded from
Performance Measurement 33 5 33 5
Consolidated $108 $52 $108 $52 $3,882 $3,929
North America $48 $40 $23 $11 $2,162 $2,242
Europe 26 23 18 15 1,096 1,051
South America 17 11 14 9 327 293
Asia Pacific 7 8 3 5 159 167
Dana Commercial Credit 5 6 5 6 325 306
Other (46) (49) (6) (7) (187) (130)
Continuing Operations 57 39 57 39 3,882 3,929
Discontinued Operations 18 8 18 8
Unusual Items Excluded from
Performance Measurement 33 5 33 5
Consolidated $108 $52 $108 $52 $3,882 $3,929
Information for Discontinued
Operations 970 962
The performance and net assets of Clevite are now included in ASG.
See Notes 20 and 21 in Dana's 2003 Annual Report for further information
( http://WWW.Dana.Com )
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Six Months Ended June 30, 2004
(in millions)
Inter-
Segment
External Sales Sales EBIT
04 03 04 03 04 03
Automotive Systems Group $3,431 $3,004 $93 $71 $212 $164
Heavy Vehicle Technologies and
Systems Group 1,170 954 18 41 90 55
Dana Commercial Credit
Other 41 30 3 3 (109) (98)
Continuing Operations 4,642 3,988 114 115 193 121
Discontinued Operations 55 31
Unusual Items Excluded from
Performance Measurement (9) (8)
Consolidated $4,642 $3,988 $114 $115 $239 $144
North America $3,171 $2,796 $52 $47 $163 $113
Europe 880 738 61 40 67 56
South America 283 193 94 80 45 26
Asia Pacific 308 261 14 1 18 24
Dana Commercial Credit
Other (100) (98)
Continuing Operations 4,642 3,988 221 168 193 121
Discontinued Operations 55 31
Unusual Items Excluded from
Performance Measurement (9) (8)
Consolidated $4,642 $3,988 $221 $168 $239 $144
Information for Discontinued
Operations 1,067 1,150 9 8
The performance and net assets of Clevite are now included in ASG.
See Notes 20 and 21 in Dana's 2003 Annual Report for further information
(http://WWW.Dana.Com)
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Six Months Ended June 30, 2004
(in millions)
Operating PAT Net Profit Net Assets
04 03 04 03 04 03
Automotive Systems Group $143 $123 $82 $62 $2,986 $2,980
Heavy Vehicle
Technologies and Systems
Group 55 34 28 9 621 643
Dana Commercial Credit 12 12 12 12 325 306
Other (105) (104) (17) (18) (50) -
Continuing Operations 105 65 105 65 3,882 3,929
Discontinued Operations 31 13 31 13
Unusual Items Excluded
from Performance
Measurement 35 15 35 15
Consolidated $171 $93 $171 $93 $3,882 $3,929
North America $102 $72 $47 $16 $2,162 $2,242
Europe 48 48 32 33 1,096 1,051
South America 28 16 23 12 327 293
Asia Pacific 12 15 5 9 159 167
Dana Commercial Credit 12 12 12 12 325 306
Other (97) (98) (14) (17) (187) (130)
Continuing Operations 105 65 105 65 3,882 3,929
Discontinued Operations 31 13 31 13
Unusual Items Excluded
from Performance
Measurement 35 15 35 15
Consolidated $171 $93 $171 $93 $3,882 $3,929
Information for
Discontinued Operations 970 962
The performance and net assets of Clevite are now included in ASG.
See Notes 20 and 21 in Dana's 2003 Annual Report for further information
(http://WWW.Dana.Com)
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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