Dana Corporation Reports Increased Earnings
Feb 11, 2004
TOLEDO, Ohio, Feb. 11 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) announced improved performance for the fourth-quarter and full-
year 2003, and increased its dividend payment for the first quarter of 2004.
Specifically:
* Fourth-quarter net income increased to $68 million from a loss of
$9 million during the same period of the prior year;
* Full-year net income improved to $222 million from a loss of
$182 million in 2002; and
* The quarterly dividend was doubled from 6 to 12 cents per share.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
"Notwithstanding the extraordinary challenges Dana faced in 2003, we
continued to execute on our restructuring plan and, as a result, improved our
earnings and strengthened our balance sheet," said Dana Chairman Glen Hiner.
"Building on this foundation, we begin the new year with renewed momentum,
exciting programs with a diverse group of global customers, and a sharpened
strategic focus."
In a move to further refine its direction, Dana announced in December its
intent to divest substantially all of its Automotive Aftermarket business
unit. These operations have been re-classified as discontinued operations.
Financial Summary
(in millions, except earnings per share)
4th Quarter Full Year
2003 2002 2003 2002
Net Sales
Continuing operations $2,050 $1,790 $7,918 $7,501
Discontinued operations 473 617 2,153 2,782
Total $2,523 $2,407 $10,071 $10,283
Net Income (Loss)
Income (loss) from
continuing operations $56 $(1) $175 $6
Income (loss) from
discontinued operations 12 (8) 47 32
Goodwill accounting change --- --- --- (220)
Net income (loss) $68 $(9) $222 $(182)
Net income, excluding
unusual items $62 $32 $183 $171
Goodwill accounting change --- --- --- (220)
October 2001 plan
restructuring --- (44) --- (163)
Net gain on divestitures 6 3 30 30
Gain on repurchase
of notes --- --- 9 ---
Net income (loss) $68 $(9) $222 $(182)
Diluted Earnings per Share
Net Income, excluding
unusual items $0.41 $0.22 $ 1.23 $1.15
Net income (loss) $0.45 $(0.06) $ 1.49 $(1.22)
Fourth-Quarter Results
Sales from continuing operations were $2.1 billion for the fourth quarter
of 2003, compared to $1.8 billion during the same period last year. Sales in
2003 were favorably impacted by $132 million of foreign currency translation.
The balance of the increase was due to improved heavy-truck production in
North America and new business coming on stream.
Net income totaled $68 million, or 45 cents per share, compared to a loss
of $9 million, or 6 cents per share, during the same period in 2002. The
improvement was driven by higher sales, the effects of the company's
restructuring plan, and certain tax benefits, which more than offset higher-
than-anticipated start-up costs in its structures business.
Full-Year Results
Sales from continuing operations were $7.9 billion in 2003, compared to
$7.5 billion in 2002. The increase in full-year sales was largely due to
foreign currency translation and new business, offset partially by lower North
American vehicular production, particularly in the first half of 2003.
Net income in 2003 totaled $222 million, or $1.49 per share, compared to a
loss of $182 million, or $1.22 cents per share, in 2002. Net income in 2003
included net gains from divestitures and the repurchase of debt, while net
income in 2002 reflected a charge associated with the change in accounting for
goodwill, restructuring costs, and net divestiture gains.
"In early 2003, lower vehicle production and softness in aftermarket
business hampered our year-on-year comparisons," said Chief Financial Officer
Bob Richter. "However, improved performance in our engine and heavy vehicle
units drove stronger earnings in the second half of the year. But for the
effect of start-up costs in structures, we would have seen the same type of
improvement from the Automotive Systems Group as well.
"We came in under our targeted working capital reduction, due in large
part to a delay in receiving certain customer tooling reimbursements," Mr.
Richter added. "Nevertheless, we are pleased with the improvement in our
balance sheet, which shows a substantial reduction in net debt. In fact,
aided by the positive effect of currency movements and pension adjustments on
net worth, our ratio of net debt-to-capital, exclusive of Dana Credit
Corporation, improved to 45 percent from 57 percent a year ago."
2004 Outlook
Commenting on the current year, Mr. Richter said the company anticipates
increased sales in its key global markets: light vehicular, heavy vehicle, and
off-highway. "Along with favorable market conditions, particularly in the
North American heavy-truck segment, we expect to benefit more fully from our
restructuring, which is now essentially complete," he said.
"The early part of the year continues to be impacted by our product
launches," he added. "So in the near-term, we have two major objectives.
First, we intend to put the structures start-ups behind us, collect the
related tooling payments, and realize the significant contribution we expect
from these new programs. Secondly, we will work diligently to complete the
sale of our aftermarket group.
"We take pride in the efforts of our people over the last two years," Mr.
Hiner added. "We believe our significant progress in realigning and
refocusing Dana, in combination with the expected upturn in our global
markets, bodes well for a solid 2004 and beyond."
Dividend Increased to 12 Cents per Share for the First Quarter
On Feb. 10, Dana's Board of Directors declared a dividend of 12 cents per
share for the first quarter, which compares to 6 cents per share for the
previous quarter. "For the second consecutive quarter, we are pleased to
provide our shareholders with a sizeable dividend increase," Mr. Hiner said.
"This action is a clear expression of the Board's confidence in Dana's future
and its strong belief that dividends are an important component of the total
return that we provide to our shareholders."
Quarterly Conference Call Scheduled Today at 10 a.m.
Dana will discuss its fourth-quarter and full-year results in a conference
call at 10 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 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 1 p.m. today. To access this recording, please dial (800)
537-8823. A webcast replay of the call will be available after 3 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 vehicle manufacturers and their related aftermarkets. The
company's continuing operations employ approximately 45,000 people worldwide
and reported 2003 sales of $7.9 billion. Founded in 1904 and based in Toledo,
Ohio, Dana operates hundreds of technology, manufacturing, and customer
service facilities in 30 countries.
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 contemplated divestiture of the Automotive
Aftermarket business unit; 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
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Three Months Ended December 31
2003 2002
Net sales $2,050 $1,790
Revenue from lease financing
and other income 36 19
2,086 1,809
Costs and expenses
Cost of sales 1,870 1,638
Selling, general and
administrative expenses 128 141
Restructuring charges 5 68
Interest expense 52 62
2,055 1,909
Income (loss) before income taxes 31 (100)
Income tax benefit 15 85
Minority interest (3) (2)
Equity in earnings
of affiliates 13 16
Income (loss) from continuing
operations 56 (1)
Income (loss) from
discontinued operations 12 (8)
Net income (loss) $68 $(9)
Basic earnings (loss) per share
Income (loss) from
continuing operations $0.37 $(0.01)
Income (loss) from
discontinued operations 0.08 (0.05)
Net income (loss) $0.45 $(0.06)
Diluted earnings (loss) per share
Income (loss) from
continuing operations $0.37 $(0.01)
Income (loss) from
discontinued operations 0.08 (0.05)
Net income (loss) $0.45 $(0.06)
Average shares outstanding -
For Basic EPS 148 148
For Diluted EPS 150 149
Dana Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Year Ended December 31
2003 2002
Net sales $7,918 $7,501
Revenue from lease financing
and other income 149 188
8,067 7,689
Costs and expenses
Cost of sales 7,245 6,804
Selling, general and
administrative expenses 520 582
Restructuring charges 158
Interest expense 221 259
7,986 7,803
Income (loss) before income
taxes 81 (114)
Income tax benefit 49 78
Minority interest (7) (13)
Equity in earnings
of affiliates 52 55
Income from continuing operations
before effect of change in
accounting 175 6
Income from discontinued
operations 47 32
Income before effect of change
in accounting 222 38
Effect of change in
accounting (220)
Net income (loss) $222 $(182)
Basic earnings (loss) per share
Income from continuing operations
before effect of change in
accounting $1.17 $0.04
Income from discontinued
operations 0.32 0.22
Effect of change in
accounting (1.49)
Net income (loss) $1.49 $(1.23)
Diluted earnings (loss) per share
Income from continuing operations
before effect of change in
accounting $1.17 $0.04
Income from discontinued
operations 0.32 0.22
Effect of change in accounting (1.48)
Net income (loss) $1.49 $(1.22)
Average shares outstanding -
For Basic EPS 148 148
For Diluted EPS 149 149
Dana Corporation
Condensed Balance Sheet (Unaudited)
(in millions)
December 31 December 31
Assets 2003 2002
Current assets
Cash and cash equivalents $731 $571
Accounts receivable
Trade 1,048 1,348
Other 326 320
Inventories 743 1,116
Discontinued operations 1,254 177
Other current assets 431 586
Total current assets 4,533 4,118
Investment in leases 622 827
Investments and other assets 2,252 2,052
Property, plant and
equipment, net 2,210 2,556
Total assets $9,617 $9,553
Liabilities and Shareholders'
Equity
Current liabilities
Notes payable $493 $287
Accounts payable 1,076 1,004
Discontinued operations 307 68
Other current liabilities 1,089 1,465
Total current liabilities 2,965 2,824
Long-term debt 2,605 3,215
Deferred employee benefits
and other noncurrent
liabilities 1,901 1,925
Minority interest 96 107
Shareholders' equity 2,050 1,482
Total liabilities and
shareholders' equity $9,617 $9,553
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Three Months Ended December 31
2003 2002
Net income (loss) $68 $(9)
Depreciation and amortization 100 118
Asset impairment 3 69
Gain on divestitures, asset
sales and note repurchases (18) (18)
Working capital decrease 105 61
Other (8) (60)
Net cash flows - operating activities 250 161
Purchases of property, plant
and equipment (90) (125)
Payments received on leases 5 (7)
Net loan repayments from customers 2 2
Divestitures 271
Asset sales 76 282
Other 14 35
Net cash flows - investing activities 7 458
Net change in short-term debt (104) (274)
Payments on long-term debt (47) (215)
Dividends paid (9) (1)
Other 1 (3)
Net cash flows - financing activities (159) (493)
Net change in cash and cash equivalents 98 126
Net change in cash - discontinued
operations (3) (2)
Cash and cash equivalents - beginning
of period 636 447
Cash and cash equivalents - end of period $731 $571
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Year Ended December 31
2003 2002
Net income (loss) $222 $(182)
Depreciation and amortization 394 478
Asset impairment 21 114
Change in accounting for
goodwill 220
Gain on divestitures, asset
sales and note repurchases (47) (53)
Working capital decrease
(increase) (212) 50
Other (43) (106)
Net cash flows - operating activities 335 521
Purchases of property, plant
and equipment (305) (375)
Payments received on leases 26 39
Net loan repayments from customers 14 20
Acquisitions (31)
Divestitures 145 506
Asset sales 282 349
Other 47 17
Net cash flows - investing activities 209 525
Net change in short-term debt (113) (556)
Proceeds from long-term debt 285
Payments on and repurchases
of long-term debt (272) (467)
Dividends paid (14) (6)
Other 17 72
Net cash flows - financing activities (382) (672)
Net change in cash and cash
equivalents 162 374
Net change in cash - discontinued
operations (2) (2)
Cash and cash equivalents - beginning
of period 571 199
Cash and cash equivalents - end of period $731 $571
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Three Months Ended December 31
2003 2002
Net sales $2,050 $1,790
Other income 18 12
2,068 1,802
Costs and expenses
Cost of sales 1,883 1,655
Selling, general and
administrative expenses 107 107
Restructuring charges 5 68
Interest expense 38 42
2,033 1,872
Income (loss) before income taxes 35 (70)
Income tax benefit 2 45
Minority interest (3) (2)
Equity in earnings
of affiliates 22 26
Income (loss) from continuing
operations 56 (1)
Income (loss) from
discontinued operations 12 (8)
Net income (loss) $68 $(9)
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Year Ended December 31
2003 2002
Net sales $7,918 $7,501
Other income 91 57
8,009 7,558
Costs and expenses
Cost of sales 7,293 6,867
Selling, general and
administrative expenses 447 467
Restructuring charges 158
Interest expense 160 175
7,900 7,667
Income (loss) before income taxes 109 (109)
Income tax benefit (expense) (20) 31
Minority interest (7) (13)
Equity in earnings
of affiliates 93 97
Income from continuing operations
before effect of change in
accounting 175 6
Income from discontinued
operations 47 32
Income before effect of change
in accounting 222 38
Effect of change in accounting (220)
Net income (loss) $222 $(182)
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Balance Sheet (Unaudited)
(in millions)
December 31 December 31
Assets 2003 2002
Current assets
Cash and cash equivalents $664 $551
Accounts receivable
Trade 1,048 1,348
Other 300 209
Inventories 743 1,116
Discontinued operations 1,254 177
Other current assets 399 539
Total current assets 4,408 3,940
Investments and other assets 2,580 2,375
Property, plant and
equipment, net 2,014 2,253
Total assets $9,002 $8,568
Liabilities and Shareholders'
Equity
Current liabilities
Notes payable $260 $53
Accounts payable 1,076 1,004
Discontinued operations 307 68
Other current liabilities 1,235 1,487
Total current liabilities 2,878 2,612
Long-term debt 2,087 2,462
Deferred employee benefits
and other noncurrent liabilities 1,893 1,906
Minority interest 94 106
Shareholders' equity 2,050 1,482
Total liabilities and
shareholders' equity $9,002 $8,568
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Three Months Ended December 31
2003 2002
Sources
Net income $68 $(9)
Depreciation 88 96
Divestitures and non-
restructuring asset sales 25 345
Working capital decrease
(increase) 147 294
328 726
Uses
Capital spend (86) (60)
Dividends (9) (1)
Net changes in other accounts 14 (245)
(81) (306)
October 2001 restructuring
cash impact
After-tax charges 44
Cash payments (44) (92)
Proceeds from asset sales 21 77
(23) 29
Cash change in net debt $224 $449
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Year Ended December 31
2003 2002
Sources
Net income (loss) $222 $(182)
Change in accounting for
goodwill 220
Net income before goodwill
change 222 38
Depreciation 337 387
Divestitures and non-
restructuring asset sales 177 398
Working capital decrease
(increase) (72) 279
664 1,102
Uses
Capital spend (295) (246)
Dividends (14) (6)
Acquisitions (31)
Net changes in other
accounts (5) (190)
(314) (473)
October 2001 restructuring
cash impact
After-tax charges 163
Cash payments (136) (200)
Proceeds from asset sales 58 100
(78) 63
Cash change in net debt $272 $692
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Three Months Ended December 31, 2003
Dana Elimin- Dana
with DCC on ation 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
Selling, general and
administrative expenses 107 24 (3) 128
Restructuring charges 5 5
Interest expense 38 14 52
2,033 38 (16) 2,055
Income (loss) before income
taxes 35 (4) - 31
Income tax benefit (expense) 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 Elimin- Dana
with DCC on ation 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
Loss 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 Statement of Income (Unaudited)
(in millions)
Three Months Ended December 31, 2002
Dana Elimin- Dana
with DCC on ation Consoli-
Equity Basis DCC Entries dated
Net sales $1,790 $ $ $1,790
Other income 12 22 (15) 19
1,802 22 (15) 1,809
Costs and expenses
Cost of sales 1,655 (17) 1,638
Selling, general and
administrative expenses 107 42 (8) 141
Restructuring charges 68 68
Interest expense 42 20 62
1,872 62 (25) 1,909
Income (loss) before income
taxes (70) (40) 10 (100)
Income tax benefit (expense) 45 44 (4) 85
Minority interest (2) (2)
Equity in earnings
of affiliates 26 5 (15) 16
Income (loss) from continuing
operations (1) 9 (9) (1)
Loss from discontinued
operations (8) (8)
Net loss $ (9) $ 9 $ (9) $ (9)
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, 2002
Dana Elimin- Dana
with DCC on ation Consoli-
Equity Basis DCC Entries dated
Net sales $7,501 $ $ $7,501
Other income 57 241 (110) 188
7,558 241 (110) 7,689
Costs and expenses
Cost of sales 6,867 (63) 6,804
Selling, general and
administrative expenses 467 162 (47) 582
Restructuring charges 158 158
Interest expense 175 84 259
7,667 246 (110) 7,803
Loss before income taxes (109) (5) - (114)
Income tax benefit (expense) 31 47 78
Minority interest (13) (13)
Equity in earnings
of affiliates 97 23 (65) 55
Income from continuing
operations 6 65 (65) 6
Income from discontinued
operations 32 32
Income before effect of change
in accounting 38 65 (65) 38
Effect of change in accounting (220) (220)
Net income (loss) $(182) $65 $(65) $(182)
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 Elimin- Dana
with DCC on ation Consoli-
Assets Equity 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
Discontinued
operations 1,254 1,254
Other current assets 399 212 (180) 431
Total current assets 4,408 305 (180) 4,533
Property, plant and
equipment, net 2,014 16 180 2,210
Investment in leases 802 (180) 622
Investments and other
assets 2,580 559 (887) 2,252
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
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
Condensed Consolidating Balance Sheet (Unaudited)
(in millions)
December 31, 2002
Dana Elimin- Dana
with DCC on ation Consoli-
Assets Equity Basis DCC Entries dated
Current assets
Cash and cash
equivalents $ 551 $ 20 $ $ 571
Accounts receivable
Trade 1,348 1,348
Other 209 111 320
Inventories 1,116 1,116
Discontinued operations 177 177
Other current assets 539 105 (58) 586
Total current assets 3,940 236 (58) 4,118
Property, plant and
equipment, net 2,253 39 264 2,556
Investment in leases 1,091 (264) 827
Investments and other
assets 2,375 569 (892) 2,052
Total assets $8,568 $1,935 $(950) $9,553
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $ 53 $ 234 $ $ 287
Accounts payable 1,004 1,004
Discontinued operations 68 68
Other current
liabilities 1,487 37 (59) 1,465
Total current
liabilities 2,612 271 (59) 2,824
Long-term debt 2,462 753 3,215
Deferred employee benefits
and other noncurrent
liabilities 1,906 639 (620) 1,925
Minority interest 106 1 107
Shareholders' equity 1,482 271 (271) 1,482
Total liabilities and
shareholders' equity $8,568 $1,935 $(950) $9,553
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, 2003
Dana Elimin- Dana
with DCC on ation Consoli-
Equity Basis DCC Entries dated
Sources
Net income $ 68 $ 13 $(13) $ 68
Depreciation 88 12 100
Asset sales (non-restructuring) 25 42 (12) 55
Working capital decrease
(increase) 147 11 (9) 149
328 78 (34) 372
Uses
Capital spend (86) (3) (1) (90)
Dividends (9) (50) 50 (9)
Net changes in other accounts 14 (8) (15) (9)
(81) (61) 34 (108)
October 2001 restructuring cash
impact
Cash payments (44) (44)
Proceeds from asset sales 21 21
(23) - - (23)
Cash change in net debt $224 $ 17 $ - $ 241
Analysis of components of increase
(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) (115)
Change in cash - discontinued
operations (2) 19 17
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, 2003
Dana Elimin- Dana
with DCC on ation Consoli-
Equity Basis DCC Entries dated
Sources
Net income $ 222 $ 61 $ (61) $ 222
Depreciation 337 57 394
Divestitures and non-
restructuring asset sales 177 209 (17) 369
Working capital decrease
(increase) (72) 3 (7) (76)
664 330 (85) 909
Uses
Capital spend (295) (12) 2 (305)
Dividends (14) (50) 50 (14)
Net changes in other accounts (5) (19) 33 9
(314) (81) 85 (310)
October 2001 restructuring cash
impact
Cash payments (136) (136)
Proceeds from asset sales 58 58
(78) - - (78)
Cash change in net debt $ 272 $249 $ - $ 521
Analysis of components of
increase (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.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Three Months Ended December 31, 2002
Dana Elimin- Dana
with DCC on ation Consoli-
Equity Basis DCC Entries dated
Sources
Net loss $ (9) $ (9) $ 9 $ (9)
Depreciation 96 22 118
Divestitures and non-
restructuring asset sales 345 131 476
Working capital decrease
(increase) 294 (1) 1 294
726 143 10 879
Uses
Capital spend (60) (5) (60) (125)
Dividends (1) (1)
Acquisitions - -
Net changes in other accounts (245) 25 50 (170)
(306) 20 (10) (296)
October 2001 restructuring cash
impact
After-tax charges 44 44
Cash payments (92) (92)
Proceeds from asset sales 77 77
29 - - 29
Cash change in net debt $449 $ 163 $ - $612
Analysis of components of
increase (decrease) in net debt:
Net change in short-term debt $(249) $ (37) $ $(286)
Payments on long term debt (20) (180) (200)
Change in cash (180) 54 (126)
Cash change in net debt (449) (163) - (612)
Non-cash changes in net debt 26 (13) 13
Total change in net debt $(423) $(176) $ - $(599)
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, 2002
Dana Elimin- Dana
with DCC on ation Consoli-
Equity Basis DCC Entries dated
Sources
Net income (loss) $ (182) $ 47 $ (47) $ (182)
Change in accounting for
goodwill 220 220
Net income before goodwill
change 38 47 (47) 38
Depreciation 387 91 478
Divestitures and non-
restructuring asset sales 398 357 755
Working capital decrease
(increase) 279 (15) 8 272
1,102 480 (39) 1,543
Uses
Capital spend (246) (60) (69) (375)
Dividends (6) (6)
Acquisitions (31) (31)
Net changes in other accounts (190) (72) 108 (154)
(473) (132) 39 (566)
October 2001 restructuring cash
impact
After-tax charges 163 163
Cash payments (200) (200)
Proceeds from asset sales 100 100
63 - - 63
Cash change in net debt $692 $348 $ - $1,040
Analysis of components of
increase (decrease) in net
debt:
Net change in short-term debt $(456) $(100) $ $ (556)
Proceeds from long-term debt 250 35 285
Proceeds from swap termination 72 72
Payments on long term debt (187) (280) (467)
Change in cash (371) (3) (374)
Cash change in net debt (692) (348) - (1,040)
Non-cash changes in net debt 66 (24) 42
Total change in net debt $(626) $(372) $ - $(998)
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)
Q4 - 2003
(in millions)
Inter-
Segment
External Sales Sales EBIT
03 02 03 02 03 02
Automotive Systems Group $1,004 $872 $31 $34 $49 $50
Engine and Fluid Management
Group 527 487 9 9 43 24
Heavy Vehicle Technologies and
Systems Group 499 419 17 18 36 16
Dana Commercial Credit
Other 20 12 2 141 (56) (47)
Continuing Operations 2,050 1,790 59 202 72 43
Discontinued Operations 19 32
Unusual Items Excluded from
Performance Measurement (5) (88)
Effect of change in Accounting
Consolidated $2,050 $1,790 $59 $202 $86 $(13)
North America $1,388 $1,279 $23 $24 $80 $67
Europe 381 313 21 17 27 5
South America 126 82 43 30 23 5
Asia Pacific 155 116 1 1 10 7
Dana Commercial Credit
Other (68) (41)
Continuing Operations 2,050 1,790 88 72 72 43
Discontinued Operations 19 32
Unusual Items Excluded from
Performance Measurement (5) (88)
Effect of change in Accounting
Consolidated $2,050 $1,790 $88 $72 $86 $(13)
Information for Discontinued
Operations 473 617 3 5
The performance and net assets of Clevite are now included in EFMG.
See Notes 20 and 21 in Dana's 2002 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
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
Q4 - 2003
(in millions)
Operating PAT Net Profit Net Assets
03 02 03 02 03 02
Automotive Systems Group $39 $41 $17 $21 $1,931 $1,743
Engine and Fluid Management
Group 27 15 16 4 1,096 1,051
Heavy Vehicle Technologies and
Systems Group 22 10 9 (1) 610 629
Dana Commercial Credit 4 3 4 3 291 271
Other (44) (50) 2 (8) 13 (43)
Continuing Operations 48 19 48 19 3,941 3,651
Discontinued Operations 14 13 14 13
Unusual Items Excluded from
Performance Measurement 6 (41) 6 (41)
Effect of change in Accounting
Consolidated $68 $(9) $68 $(9) $3,941 $3,651
North America $47 $43 $14 $16 $2,187 $2,185
Europe 23 11 14 4 1,137 984
South America 14 3 11 1 284 255
Asia Pacific 7 5 2 2 159 149
Dana Commercial Credit 4 3 4 3 291 271
Other (47) (46) 3 (7) (117) (193)
Continuing Operations 48 19 48 19 3,941 3,651
Discontinued Operations 14 13 14 13
Unusual Items Excluded from
Performance Measurement 6 (41) 6 (41)
Effect of change in Accounting
Consolidated $68 $(9) $68 $(9) $3,941 $3,651
Information for Discontinued
Operations 913 961
The performance and net assets of Clevite are now included in EFMG.
See Notes 20 and 21 in Dana's 2002 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
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For Twelve Months Ended December 31, 2003
(in millions)
Inter-
Segment
External Sales Sales EBIT
03 02 03 02 03 02
Automotive Systems Group $3,777 $3,526 $126 $103 $204 $203
Engine and Fluid Management
Group 2,150 2,119 35 38 134 112
Heavy Vehicle Technologies
and Systems Group 1,924 1,797 75 92 130 102
Dana Commercial Credit
Other 67 59 6 638 (220) (198)
Continuing Operations 7,918 7,501 242 871 248 219
Discontinued Operations 90 157
Unusual Items Excluded from
Performance Measurement (1) (246)
Effect of change in
Accounting
Consolidated $7,918 $7,501 $242 $871 $337 $130
North America $5,473 $5,516 $88 $96 $245 $300
Europe 1,455 1,233 81 72 106 49
South America 441 361 165 156 70 52
Asia Pacific 549 391 3 2 47 19
Dana Commercial Credit
Other (220) (201)
Continuing Operations 7,918 7,501 337 326 248 219
Discontinued Operations 90 157
Unusual Items Excluded from
Performance Measurement (1) (246)
Effect of change in
Accounting
Consolidated $7,918 $7,501 $337 $326 $337 $130
Information for Discontinued
Operations 2,153 2,782 14 47
The performance and net assets of Clevite are now included in EFMG.
See Notes 20 and 21 in Dana's 2002 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
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For Twelve Months Ended December 31, 2003
(in millions)
Operating PAT Net Profit Net Assets
03 02 03 02 03 02
Automotive Systems Group $155 $157 $71 $74 $1,931 $1,743
Engine and Fluid Management
Group 87 73 40 25 1,096 1,051
Heavy Vehicle Technologies
and Systems Group 79 63 27 14 610 629
Dana Commercial Credit 21 26 21 26 291 271
Other (211) (236) (28) (56) 13 (43)
Continuing Operations 131 83 131 83 3,941 3,651
Discontinued Operations 52 88 52 88
Unusual Items Excluded from
Performance Measurement 39 (133) 39 (133)
Effect of change in
Accounting (220) (220)
Consolidated $222 $(182) $222 $(182) $3,941 $3,651
North America $155 $188 $35 $63 $2,187 $2,185
Europe 84 50 50 21 1,137 984
South America 43 32 33 24 284 255
Asia Pacific 30 13 15 1 159 149
Dana Commercial Credit 21 26 21 26 291 271
Other (202) (226) (23) (52) (117) (193)
Continuing Operations 131 83 131 83 3,941 3,651
Discontinued Operations 52 88 52 88
Unusual Items Excluded from
Performance Measurement 39 (133) 39 (133)
Effect of change in
Accounting (220) (220)
Consolidated $222 $(182) $222 $(182) $3,941 $3,651
Information for Discontinued
Operations 913 961
The performance and net assets of Clevite are now included in EFMG.
See Notes 20 and 21 in Dana's 2002 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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