Dana Corporation Reports Stronger Third-Quarter Earnings
Oct 24, 2003
- Third-quarter earnings significantly improved over 2002
- Full-year net income forecast raised to range of $210 to $220 million
- Net debt-to-capital ratio reduced to below 51 percent
- Fourth-quarter dividend increased to 6 cents per share
TOLEDO, Ohio, Oct. 24 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) today announced third-quarter net income totaling $61 million, or
41 cents per share, on sales of $2.4 billion. These results are a significant
improvement over net income of $4 million, or 2 cents per share, on sales of
$2.4 billion during the same period last year.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
Third-quarter 2003 net income of $61 million included $9 million in after-
tax gains from the continued reduction of Dana Credit Corporation (DCC)
assets, and $9 million in after-tax gains from early retirement of debt.
Excluding these items, quarterly net income totaled $43 million, or 29 cents
per share. Third-quarter 2002 reported net income of $4 million included
$40 million in after-tax charges associated with the company's restructuring
plan and $6 million of after-tax income from divested businesses classified as
"discontinued operations." Excluding these items, third-quarter 2002 net
income totaled $38 million, or 26 cents per share.
"The plan we initiated two years ago is now yielding results, achieving or
surpassing every goal associated with it," said Bill Carroll, Dana's Acting
President and Chief Operating Officer. "Our performance, evident in today's
reported results, continues to validate our strategic course. We're doing
what we said we'd do. We are delivering world-class support to our customers,
our margins are improving, we are paying down debt, and we are increasing the
dividend payout to our shareholders."
Looking ahead to 2004, Mr. Carroll noted that, "We expect that the costs
associated with our seven concurrent product launches will be largely behind
us, and that we will begin to deliver full returns on these programs. Coupled
with a steadily improving heavy-truck market and stability in the light-truck
market, we believe Dana is positioned for further improved performance next
year."
Nine-Month Results Improved
In the first nine months of 2003, Dana's net income totaled $154 million,
or $1.04 per share, on sales of $7.4 billion. This compares favorably to a
loss of $173 million, or $1.16 per share, on sales of $7.3 billion during the
first nine months of 2002. Nine-month net income in 2003 included net gains
from divestitures and the repurchase of debt, and losses from discontinued
operations. Net income in the period in 2002 reflected a charge of
$220 million, or $1.48 per share, associated with the required adoption of FAS
142 related to accounting for goodwill, as well as restructuring charges,
divestiture gains, and income from discontinued operations.
Net Debt-to-Capital Reduced; Asset Reduction Continues at DCC
"During the third quarter, we used a portion of the divestiture proceeds
we received earlier this year to repurchase some of our long-term bonds at
attractive prices," said Dana Chief Financial Officer Bob Richter. "We bought
back bonds with a face value of $158 million, generating an after-tax gain of
$9 million. This helped bring our ratio of net debt-to-capital at Sept. 30,
exclusive of DCC, down to 50.7 percent from 57.0 percent at the beginning of
the year.
"We also reduced DCC assets by another $70 million during the quarter," he
said. "This brings the total asset reduction since we began the program in
October 2001, to $780 million through September 30th, with a cumulative net
after-tax gain of $58 million."
2003 Net Income Forecast Raised; 2004 Guidance Reaffirmed
"We look forward to building on the momentum of all that we have
accomplished over the last two years," Mr. Richter added. "On the strength of
the third-quarter results, we are again raising our guidance for 2003 full-
year net income to a range of $210 to $220 million and reaffirming our belief
that earnings in 2004 will be at least $300 million, which would be just over
$2 per share."
Dividend Increased to 6 Cents per Share for the Fourth Quarter
On Oct. 21, Dana announced that it would raise its dividend to 6 cents per
share for the fourth quarter. "We are pleased that our continuing success in
executing our restructuring plan has enabled us to provide our shareholders
with this dividend increase," said Glen Hiner, Dana's Acting Chairman. "We
committed to our shareholders that we would revisit our dividend policy as our
results approached what could be considered 'investment grade' performance.
Our confidence that our net debt-to-capital will be below 50 percent by year-
end moves us toward that goal. Increasing the dividend at this time is also
consistent with our expectation of continued improvement in earnings and cash
flow."
He added, "This action reflects the strong belief of Dana that dividends
are an important component of the total return that Dana provides to our
shareholders."
Quarterly Conference Call Scheduled Today at 10 a.m.
Dana will discuss its third-quarter 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 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 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 employs approximately 60,000 people worldwide. Founded in 1904 and
based in Toledo, Ohio, Dana operates hundreds of technology, manufacturing,
and customer service facilities in 30 countries. The company reported 2002
sales of $9.5 billion.
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; the performance of the global aftermarket sector;
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 impact of our
collective bargaining negotiations and those of our customers in the North
American light vehicle sector; the continued success of our cost reduction and
cash management programs and of our long-term transformation strategy for the
company; costs associated with the tender offer for our common stock that was
commenced on July 9, 2003, by ArvinMeritor, Inc.; 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 contained in this release.
Dana's shareholders, and its customers, suppliers and employees, are
strongly advised to read carefully Dana's solicitation/recommendation
statement regarding ArvinMeritor's tender offer, because it contains important
information. Free copies of the solicitation/recommendation statement and the
related amendments, which have been filed by Dana with the Securities and
Exchange Commission, are available at the SEC's web site at http://www.sec.gov, or at
the Dana web site at http://www.dana.com, and also by directing requests to Dana's
Investor Relations Department or Dana's information agent, D.F. King & Co.,
Inc., at 1-800-901-0068.
Dana Corporation
Reconciliation to GAAP Presentation
(in millions, except per share amounts)
Three Months Ended September 30
Diluted per share
Dollar amounts amounts
2003 2002 2003 2002
Operating profit after tax (a) $43 $38 $0.29 $0.26
Add items excluded from
segment performance measures:
After-tax gains from
DCC asset sales 9 - 0.06 -
After-tax gains from
early retirement of debt 9 - 0.06
Restructuring charges after-
tax - (40) - (0.27)
Income from discontinued
operations - 6 - 0.03
Net income - GAAP basis $61 $4 $0.41 $0.02
(a) Operating profit after tax is presented in our Business
Segment table as the key internal measure of performance used by
management as a measure of segment profitability.
Dana Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Three Months Ended September 30
2003 2002
Net sales $2,410 $2,356
Revenue from lease financing
and other income 42 44
2,452 2,400
Costs and expenses
Cost of sales 2,165 2,103
Selling, general and
administrative expenses 171 199
Restructuring charges 34
Interest expense 55 63
2,391 2,399
Income before income taxes 61 1
Income tax expense (3) (5)
Minority interest (2) (4)
Equity in earnings
of affiliates 5 7
Income (loss) from continuing
operations 61 (1)
Income from discontinued
operations - 5
Net income $61 $4
Basic earnings (loss) per
share
Income (loss) from
continuing operations $0.41 $(0.01)
Income from discontinued
operations 0.03
Net income $0.41 $0.02
Diluted earnings (loss) per
share
Income (loss) from
continuing operations $0.41 $(0.01)
Income from discontinued
operations 0.03
Net income $0.41 $0.02
Average shares outstanding -
For Basic EPS 148 148
For Diluted EPS 149 149
Dana Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Nine Months Ended September 30
2003 2002
Net sales $7,393 $7,253
Revenue from lease financing
and other income 112 172
7,505 7,425
Costs and expenses
Cost of sales 6,624 6,412
Selling, general and
administrative expenses 580 639
Restructuring charges 122
Interest expense 170 195
7,374 7,368
Income before income taxes 131 57
Income tax expense (3) (40)
Minority interest (6) (13)
Equity in earnings
of affiliates 40 40
Income from continuing
operations before effect
of change in accounting 162 44
Income (loss) from
discontinued operations (8) 3
Income before effect of
change in accounting 154 47
Effect of change in
accounting (220)
Net income (loss) $154 $(173)
Basic earnings (loss) per
share
Income from continuing
operations before effect
of change in accounting $1.10 $0.30
Income (loss) from
discontinued operations (0.06) 0.02
Effect of change in
accounting (1.49)
Net income (loss) $1.04 $(1.17)
Diluted earnings (loss) per
share
Income from continuing
operations before effect
of change in accounting $1.09 $0.30
Income (loss) from
discontinued operations (0.05) 0.02
Effect of change in
accounting (1.48)
Net income (loss) $1.04 $(1.16)
Average shares outstanding -
For Basic EPS 148 148
For Diluted EPS 149 149
Dana Corporation
Condensed Balance Sheet (Unaudited)
(in millions)
September 30 December 31
Assets 2003 2002
Current assets
Cash and cash equivalents $636 $571
Accounts receivable
Trade 1,496 1,348
Other 313 320
Inventories 1,167 1,116
Other current assets 622 763
Total current assets 4,234 4,118
Property, plant and
equipment, net 2,475 2,556
Investment in leases 658 827
Investments and other assets 2,117 2,052
Total assets $9,484 $9,553
Liabilities and Shareholders'
Equity
Current liabilities
Notes payable $584 $287
Accounts payable 1,187 1,004
Other current liabilities 1,142 1,533
Total current
liabilities 2,913 2,824
Long-term debt 2,653 3,215
Deferred employee benefits
and other noncurrent
liabilities 1,968 1,925
Minority interest 100 107
Shareholders' equity 1,850 1,482
Total liabilities and
shareholders' equity $9,484 $9,553
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Three Months
Ended
September 30
2003 2002
Net income $61 $4
Depreciation and
amortization 92 118
Asset impairment 9 15
Gain on divestitures, asset
sales and note repurchases (7) (1)
Working capital increase (33) (35)
Other (5) (16)
Net cash flows - operating
activities 117 85
Purchases of property, plant
and equipment (73) (85)
Payments received on leases 5 21
Net loan repayments from
customers 1 4
Acquisitions - (31)
Divestitures - 163
Asset sales 27 8
Other 24 (7)
Net cash flows - investing
activities (16) 73
Net change in short-term
debt 88 (71)
Payments on and repurchases
of long-term debt (182) (28)
Dividends paid (2) (2)
Other (1) 72
Net cash flows - financing
activities (97) (29)
Net change in cash and cash
equivalents 4 129
Cash and cash equivalents -
beginning of period 632 318
Cash and cash equivalents -
end of period $636 $447
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Nine Months
Ended
September 30
2003 2002
Net income (loss) $154 $(173)
Depreciation and amortization 294 360
Asset impairment 18 45
Change in accounting for
goodwill - 220
Gain on divestitures, asset
sales and note repurchases (29) (35)
Working capital increase (317) (11)
Other (35) (46)
Net cash flows - operating
activities 85 360
Purchases of property, plant
and equipment (215) (250)
Payments received on leases 21 46
Net loan repayments from
customers 12 18
Acquisitions - (31)
Divestitures 145 235
Asset sales 206 67
Other 33 (18)
Net cash flows - investing
activities 202 67
Net change in short-term debt (9) (282)
Proceeds from long-term debt - 285
Payments on and repurchases
of long-term debt (225) (252)
Dividends paid (5) (5)
Other 16 75
Net cash flows - financing
activities (223) (179)
Net change in cash and cash
equivalents 64 248
Net change in cash -
discontinued operations 1
Cash and cash equivalents -
beginning of period 571 199
Cash and cash equivalents -
end of period $636 $447
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Three Months Ended September 30
2003 2002
Net sales $2,410 $2,356
Other income 33 20
2,443 2,376
Costs and expenses
Cost of sales 2,176 2,118
Selling, general and
administrative expenses 156 174
Restructuring charges 34
Interest expense 40 42
2,372 2,368
Income before income taxes 71 8
Income tax expense (25) (12)
Minority interest (2) (4)
Equity in earnings
of affiliates 17 7
Income (loss) from continuing
operations 61 (1)
Income from discontinued
operations 5
Net income $61 $4
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Nine Months Ended September 30
2003 2002
Net sales $7,393 $7,253
Other income 71 47
7,464 7,300
Costs and expenses
Cost of sales 6,658 6,457
Selling, general and
administrative expenses 529 558
Restructuring charges 122
Interest expense 123 131
7,310 7,268
Income before income taxes 154 32
Income tax expense (58) (46)
Minority interest (6) (13)
Equity in earnings
of affiliates 72 71
Income from continuing
operations before effect
of change in accounting 162 44
Income (loss) from
discontinued operations (8) 3
Income before effect of
change in accounting 154 47
Effect of change in
accounting (220)
Net income (loss) $154 $(173)
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Balance Sheet (Unaudited)
(in millions)
September 30 December 31
Assets 2003 2002
Current assets
Cash and cash
equivalents $550 $551
Accounts receivable
Trade 1,496 1,348
Other 306 209
Inventories 1,167 1,116
Other current assets 582 716
Total current assets 4,101 3,940
Property, plant and
equipment, net 2,235 2,253
Investments and other
assets 2,516 2,375
Total assets $8,852 $8,568
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $359 $53
Accounts payable 1,187 1,004
Other current
liabilities 1,287 1,555
Total current
liabilities 2,833 2,612
Long-term debt 2,090 2,462
Deferred employee benefits
and other noncurrent
liabilities 1,980 1,906
Minority interest 99 106
Shareholders' equity 1,850 1,482
Total liabilities and
shareholders' equity $8,852 $8,568
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt
(in millions)
Three Months Ended September 30
2003 2002
Sources
Net income $61 $4
Depreciation 78 96
Asset sales (non-
restructuring) 1 1
Divestitures 31
Working capital decrease
(increase) 3 (39)
143 93
Uses
Capital spend (76) (52)
Dividends (2) (2)
Acquisitions (31)
Net changes in other
accounts 11 81
(67) (4)
October 2001 restructuring
cash impact
After-tax charges 40
Cash payments (28) (30)
Proceeds from asset sales 4
(28) 14
Cash change in net debt $48 $103
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt
(in millions)
Nine Months Ended September 30
2003 2002
Sources
Net income (loss) $154 $(173)
Change in accounting for
goodwill 220
Net income before goodwill
change 154 47
Depreciation 249 291
Asset sales (non-
restructuring) 7 12
Divestitures 145 41
Working capital decrease
(increase) (219) (15)
336 376
Uses
Capital spend (209) (186)
Dividends (5) (5)
Acquisitions (31)
Net changes in other
accounts (19) 55
(233) (167)
October 2001 restructuring
cash impact
After-tax charges 119
Cash payments (92) (108)
Proceeds from asset sales 37 23
(55) 34
Cash change in net debt $48 $243
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Three Months Ended September 30, 2003
Dana
with DCC on Elimi- Dana
Equity nation Consol-
Basis DCC Entries idated
Net sales $2,410 $ $ $2,410
Other income 33 27 (18) 42
2,443 27 (18) 2,452
Costs and expenses
Cost of sales 2,176 (11) 2,165
Selling, general and
administrative expenses 156 22 (7) 171
Interest expense 40 15 55
2,372 37 (18) 2,391
Income (loss) before income
taxes 71 (10) - 61
Income tax benefit (expense) (25) 22 (3)
Minority interest (2) (2)
Equity in earnings
of affiliates 17 5 (17) 5
Net income $61 $17 $(17) $61
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)
Nine Months Ended September 30, 2003
Dana
with DCC on Elimi- Dana
Equity nation Consol-
Basis DCC Entries idated
Net sales $7,393 $ $ $7,393
Other income 71 101 (60) 112
7,464 101 (60) 7,505
Costs and expenses
Cost of sales 6,658 (34) 6,624
Selling, general and
administrative expenses 529 77 (26) 580
Interest expense 123 47 170
7,310 124 (60) 7,374
Income (loss) before income
taxes 154 (23) - 131
Income tax benefit (expense) (58) 55 (3)
Minority interest (6) (6)
Equity in earnings
of affiliates 72 16 (48) 40
Income from continuing
operations 162 48 (48) 162
Loss from discontinued
operations (8) (8)
Net income $154 $48 $(48) $154
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 September 30,
2002
Dana
with DCC on Elimi- Dana
Equity nation Consol-
Basis DCC Entries idated
Net sales $2,356 $ $ $2,356
Other income 20 55 (31) 44
2,376 55 (31) 2,400
Costs and expenses
Cost of sales 2,118 (15) 2,103
Selling, general and
administrative expenses 174 37 (12) 199
Restructuring charges 34 34
Interest expense 42 21 63
2,368 58 (27) 2,399
Income (loss) before income
taxes 8 (3) (4) 1
Income tax benefit (expense) (12) 6 1 (5)
Minority interest (4) (4)
Equity in earnings
of affiliates 7 6 (6) 7
Income (loss) from continuing
operations (1) 9 (9) (1)
Income from discontinued
operations 5 5
Net income $4 $9 $(9) $4
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)
Nine Months Ended September 30, 2002
Dana
with DCC on Elimi- Dana
Equity nation Consol-
Basis DCC Entries idated
Net sales $7,253 $ $ $7,253
Other income 47 220 (95) 172
7,300 220 (95) 7,425
Costs and expenses
Cost of sales 6,457 (45) 6,412
Selling, general and
administrative expenses 558 120 (39) 639
Restructuring charges 122 122
Interest expense 131 64 195
7,268 184 (84) 7,368
Income before income taxes 32 36 (11) 57
Income tax benefit (expense) (46) 3 3 (40)
Minority interest (13) (13)
Equity in earnings
of affiliates 71 18 (49) 40
Income from continuing
operations 44 57 (57) 44
Income from discontinued
operations 3 3
Income before effect of change
in accounting 47 57 (57) 47
Effect of change in accounting (220) (220)
Net income (loss) $(173) $57 $(57) $(173)
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)
September 30, 2003
Dana
with DCC on Elimi- Dana
Equity nation Consol-
Assets Basis DCC Entries idated
Current assets
Cash and cash
equivalents $550 $86 $ $636
Accounts receivable
Trade 1,496 1,496
Other 306 7 313
Inventories 1,167 1,167
Other current assets 582 211 (171) 622
Total current assets 4,101 304 (171) 4,234
Property, plant and
equipment, net 2,235 16 224 2,475
Investment in leases 882 (224) 658
Investments and other
assets 2,516 520 (919) 2,117
Total assets $8,852 $1,722 $(1,090) $9,484
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $359 $225 $ $584
Accounts payable 1,187 1,187
Other current
liabilities 1,287 26 (171) 1,142
Total current
liabilities 2,833 251 (171) 2,913
Long-term debt 2,090 563 2,653
Deferred employee
benefits and other
noncurrent liabilities 1,980 584 (596) 1,968
Minority interest 99 1 100
Shareholders' equity 1,850 323 (323) 1,850
Total liabilities and
shareholders' equity $8,852 $1,722 $(1,090) $9,484
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
with DCC on Elimi- Dana
Equity nation Consol-
Assets Basis DCC Entries idated
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
Other current assets 716 105 (58) 763
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
Other current
liabilities 1,555 37 (59) 1,533
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
(in millions)
Three Months Ended September 30,
2003
Dana
with DCC on Elimi- Dana
Equity nation Consol-
Basis DCC Entries idated
Sources
Net income $61 $17 $(17) $61
Depreciation 78 14 92
Asset sales (non-restructuring) 1 30 (4) 27
Working capital decrease
(increase) 3 (4) (4) (5)
143 57 (25) 175
Uses
Capital spend (76) (1) 4 (73)
Dividends (2) (2)
Net changes in other accounts 11 (4) 21 28
(67) (5) 25 (47)
October 2001 restructuring cash
impact
Cash payments (28) (28)
Proceeds from asset sales - -
(28) - - (28)
Cash change in net debt $48 $52 $- $100
Analysis of components of increase
(decrease) in net debt:
Net change in short-term debt $92 $ $ $92
Repurchases of long-term debt (140) (140)
Payments on long-term debt 3 (52) (49)
Change in cash (3) - (3)
Cash change in net debt (48) (52) - (100)
Non-cash changes in net debt (53) (1) (54)
Total change in net debt $(101) $(53) $- $(154)
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
(in millions)
Nine Months Ended September 30,
2003
Dana
with DCC on Elimi- Dana
Equity nation Consol-
Basis DCC Entries idated
Sources
Net income $154 $48 $(48) $154
Depreciation 249 45 294
Asset sales (non-restructuring) 7 167 (5) 169
Divestitures 145 145
Working capital decrease
(increase) (219) (8) 2 (225)
336 252 (51) 537
Uses
Capital spend (209) (9) 3 (215)
Dividends (5) (5)
Net changes in other accounts (19) (11) 48 18
(233) (20) 51 (202)
October 2001 restructuring cash
impact
Cash payments (92) (92)
Proceeds from asset sales 37 37
(55) - - (55)
Cash change in net debt $48 $232 $- $280
Analysis of components of increase
(decrease) in net debt:
Net change in short-term debt $87 $(96) $ $(9)
Repurchases of long-term debt (140) (140)
Proceeds from swap settlement 18 18
Net payments on long-term debt (15) (70) (85)
Change in cash 2 (66) (64)
Cash change in net debt (48) (232) - (280)
Non-cash changes in net debt (17) (33) (50)
Total change in net debt $(65) $(265) $- $(330)
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
(in millions)
Three Months Ended September 30,
2002
Dana
with DCC on Elimi- Dana
Equity nation Consol-
Basis DCC Entries idated
Sources
Net income $4 $8 $(8) $4
Depreciation 96 22 118
Asset sales 1 32 (29) 4
Divestitures 31 132 163
Working capital increase (39) (2) (4) (45)
93 192 (41) 244
Uses
Capital spend (52) (53) 20 (85)
Dividends (2) (2)
Acquisitions (31) (31)
Net changes in other accounts 81 (83) 21 19
(4) (136) 41 (99)
October 2001 restructuring cash
impact
After-tax charges 40 40
Cash payments (30) (30)
Proceeds from asset sales 4 4
14 - - 14
Cash change in net debt $103 $56 $- $159
Analysis of components of increase
(decrease) in net debt:
Net change in short-term debt $(82) $23 $ $(59)
Proceeds from long-term debt - - -
Proceeds from swap termination 72 72
Payments on long term debt (21) (22) (43)
Change in cash (72) (57) (129)
Cash change in net debt (103) (56) - (159)
Non-cash changes in net debt (11) (16) (27)
Total change in net debt $(114) $(72) $- $(186)
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
(in millions)
Nine Months Ended September 30, 2002
Dana
with DCC on Elimi- Dana
Equity nation Consol-
Basis DCC Entries idated
Sources
Net income (loss) $(173) $56 $(56) $(173)
Change in accounting for
goodwill 220 220
Net income before goodwill
change 47 56 (56) 47
Depreciation 291 69 360
Asset sales 12 32 44
Divestitures 41 194 235
Working capital increase (15) (14) 7 (22)
376 337 (49) 664
Uses
Capital spend (186) (55) (9) (250)
Dividends (5) (5)
Acquisitions (31) (31)
Net changes in other accounts 55 (97) 58 16
(167) (152) 49 (270)
October 2001 restructuring cash
impact
After-tax charges 119 119
Cash payments (108) (108)
Proceeds from asset sales 23 23
34 - - 34
Cash change in net debt $243 $185 $- $428
Analysis of components of
increase (decrease) in net debt:
Net change in short-term debt $(207) $(63) $ $(270)
Proceeds from long-term debt 250 35 285
Proceeds from swap termination 72 72
Payments on long term debt (167) (100) (267)
Change in cash (191) (57) (248)
Cash change in net debt (243) (185) - (428)
Non-cash changes in net debt 40 (11) 29
Total change in net debt $(203) $(196) $- $(399)
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 Nine Months Ended September 30, 2003
(in millions)
Inter-
Segment
External Sales Sales EBIT
03 02 03 02 03 02
Automotive Systems Group $2,773 $2,655 $95 $70 $155 $153
Automotive Aftermarket Group 1,656 1,678 10 12 94 134
Engine and Fluid Management Group 1,494 1,496 71 75 98 95
Heavy Vehicle Technologies and
Systems Group 1,425 1,378 58 74 93 86
Dana Commercial Credit
Other 45 46 5 10 (185) (164)
Continuing Operations 7,393 7,253 239 241 255 304
Discontinued Operations (9) (3)
Unusual Items Excluded from
Performance Measurement 5 (158)
Effect of change in Accounting
Consolidated $7,393 $7,253 $239 $241 $251 $143
North America $5,300 $5,500 $61 $28 $261 $351
Europe 1,292 1,111 62 53 79 48
South America 406 367 139 137 58 54
Asia Pacific 395 275 2 1 37 12
Dana Commercial Credit
Other (180) (161)
Continuing Operations 7,393 7,253 264 219 255 304
Discontinued Operations (9) (3)
Unusual Items Excluded from
Performance Measurement 5 (158)
Effect of change in Accounting
Consolidated $7,393 $7,253 $264 $219 $251 $143
Information for Discontinued
Operations 155 623 6 50
The differences between the net profit (loss) amounts reported for
discontinued operations above and the income (loss) from discontinued
operations reported on the condensed statement of income result from the
separate reporting of unusual items excluded from performance measurement,
which include amounts recorded by our discontinued operations.
See Notes 20 and 21 in Dana's 2002 Annual Report for further information
( http://WWW.Dana.Com )
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For Nine Months Ended September 30, 2003
(in millions)
Operating PAT Net Profit Net Assets
03 02 03 02 03 02
Automotive Systems Group $116 $116 $52 $52 $1,912 $1,796
Automotive Aftermarket Group 59 82 14 36 1,005 1,001
Engine and Fluid Management
Group 64 62 31 28 1,030 948
Heavy Vehicle Technologies
and Systems Group 57 53 17 15 635 674
Dana Commercial Credit 18 24 18 24 324 258
Other (187) (197) (5) (15) 13 21
Continuing Operations 127 140 127 140 4,919 4,698
Discontinued Operations (6) (1) (6) (1)
Unusual Items Excluded from
Performance Measurement 33 (92) 33 (92)
Effect of change in
Accounting (220) (220)
Consolidated $154 $(173) $154 $(173) $4,919 $4,698
North America $154 $217 $41 $91 $3,003 $2,980
Europe 61 42 32 15 1,197 1,095
South America 36 33 27 25 338 296
Asia Pacific 24 8 13 179 178
Dana Commercial Credit 18 24 18 24 324 258
Other (166) (184) (4) (15) (122) (109)
Continuing Operations 127 140 127 140 4,919 4,698
Discontinued Operations (6) (1) (6) (1)
Unusual Items Excluded from
Performance Measurement 33 (92) 33 (92)
Effect of change in
Accounting (220) (220)
Consolidated $154 $(173) $154 $(173) $4,919 $4,698
Information for Discontinued
Operations
The differences between the net profit (loss) amounts reported for
discontinued operations above and the income (loss) from discontinued
operations reported on the condensed statement of income result from the
separate reporting of unusual items excluded from performance measurement,
which include amounts recorded by our discontinued operations.
See Notes 20 and 21 in Dana's 2002 Annual Report for further information
( http://WWW.Dana.Com )
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
Q3 - 2003
(in millions)
Inter-
Segment
External Sales Sales EBIT
03 02 03 02 03 02
Automotive Systems Group $895 $836 $33 $23 $57 $42
Automotive Aftermarket Group 571 558 3 5 42 43
Engine and Fluid Management Group 458 473 24 25 28 28
Heavy Vehicle Technologies and
Systems Group 471 474 17 20 38 32
Dana Commercial Credit
Other 15 15 2 2 (70) (48)
Continuing Operations 2,410 2,356 79 75 95 97
Discontinued Operations 7
Unusual Items Excluded from
Performance Measurement 12 (50)
Effect of change in Accounting
Consolidated $2,410 $2,356 $79 $75 $107 $54
North America $1,709 $1,773 $19 $10 $94 $96
Europe 410 361 20 16 28 20
South America 157 116 48 48 25 23
Asia Pacific 134 106 1 1 13 6
Dana Commercial Credit
Other (65) (48)
Continuing Operations 2,410 2,356 88 75 95 97
Discontinued Operations 7
Unusual Items Excluded from
Performance Measurement 12 (50)
Effect of change in Accounting
Consolidated $2,410 $2,356 $88 $75 $107 $54
Information for Discontinued
Operations 210 17
The differences between the net profit (loss) amounts reported for
discontinued operations above and the income (loss) from discontinued
operations reported on the condensed statement of income result from the
separate reporting of unusual items excluded from performance measurement,
which include amounts recorded by our discontinued operations.
See Notes 20 and 21 in Dana's 2002 Annual Report for further information
( http://WWW.Dana.Com )
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
Q3 - 2003
(in millions)
Operating PAT Net Profit Net Assets
03 02 03 02 03 02
Automotive Systems Group $35 $28 $12 $9 $1,912 $1,796
Automotive Aftermarket Group 26 26 9 12 1,005 1,001
Engine and Fluid Management
Group 18 18 7 8 1,030 948
Heavy Vehicle Technologies and
Systems Group 23 20 9 7 635 674
Dana Commercial Credit 6 7 6 7 324 258
Other (65) (61) (5) 13 21
Continuing Operations 43 38 43 38 4,919 4,698
Discontinued Operations 6 6
Unusual Items Excluded from
Performance Measurement 18 (40) 18 (40)
Effect of change in Accounting
Consolidated $61 $4 $61 $4 $4,919 $4,698
North America $54 $58 $15 $19 $3,003 $2,980
Europe 15 13 5 4 1,197 1,095
South America 16 14 12 11 338 296
Asia Pacific 8 4 4 1 179 178
Dana Commercial Credit 6 7 6 7 324 258
Other (56) (58) 1 (4) (122) (109)
Continuing Operations 43 38 43 38 4,919 4,698
Discontinued Operations 6 6
Unusual Items Excluded from
Performance Measurement 18 (40) 18 (40)
Effect of change in Accounting
Consolidated $61 $4 $61 $4 $4,919 $4,698
Information for Discontinued
Operations
The differences between the net profit (loss) amounts reported for
discontinued operations above and the income (loss) from discontinued
operations reported on the condensed statement of income result from the
separate reporting of unusual items excluded from performance measurement,
which include amounts recorded by our discontinued operations.
See Notes 20 and 21 in Dana's 2002 Annual Report for further information
( http://WWW.Dana.Com )
SOURCE Dana Corporation
Web Site: http://www.dana.com
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