Dana Corporation Reports Second-Quarter Earnings
Jul 22, 2003
Announces Conference Call at 8:30 a.m. on Wednesday, July 23
TOLEDO, Ohio, July 22 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) today announced second-quarter sales of $2.5 billion and net
income of $52 million, or 35 cents per share. This compares to sales of
$2.6 billion and net income of $52 million during the same period last year.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
"We entered the quarter knowing that we faced ongoing challenges within
our Automotive Aftermarket Group and start-up costs associated with program
launches in our Structural Solutions group," said Dana Chairman and CEO Joe
Magliochetti. "Nevertheless, the benefits of the company's restructuring
program helped us exceed consensus earnings estimates for the quarter.
"During the second quarter, we achieved several important milestones. The
divestiture of our Engine Management operations was significant as we further
sharpened our focus on our core disciplines," he said. "We also continued our
strong growth with global vehicle manufacturers by securing strategically
important new light-axle and driveshaft business with Toyota in South Africa."
Net income for the second quarter of 2003 included a $7.5 million after-
tax gain from the continuing divestiture of assets by Dana Credit Corporation
(DCC). This gain was partially offset by a $2.5 million additional after-tax
charge associated with the sale of a significant portion of Dana's Engine
Management operations to Standard Motor Products, Inc.
The company also realized an after-tax profit of approximately $8 million
associated with the sale of its Parish Structural Products (Thailand) Ltd.
operation to AAPICO Hitech Public Co., Ltd. This amount represents the
recovery of development costs previously expensed during the start-up of an
operation that supported an Isuzu light-truck program in Thailand.
First-Half Results Improved
Dana's six-month consolidated sales were $5 billion, up from $4.9 billion
during the same period last year. Net income was $93 million, or 63 cents per
share, compared to a loss of $177 million, or $1.19 per share, during the
first six months of 2002. Net income 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.
"Our recent divestitures enabled us to reduce non-DCC debt by more than
$130 million during the quarter," said Dana Chief Financial Officer Bob
Richter. "This brought our ratio of net debt-to-capital at June 30, exclusive
of DCC, down to 52.8 percent from 57.0 percent at the beginning of the year.
"The sale of DCC assets also continues to progress well," he added. "DCC
has reduced its portfolio assets by $160 million so far this year and reduced
its total debt outstanding by more than $145 million. As a result, DCC now
has cash on hand in excess of its bank debt."
Looking Ahead: Restructuring, Transformation Actions Pave Way for Further
Progress
Mr. Magliochetti said that while a limited number of actions remain to be
completed in conjunction with the company's October 2001 restructuring plan,
all of Dana's restructuring costs from the program have been accounted for and
the company expects to realize the full run-rate of its restructuring benefits
by the end of the year.
"We've made solid progress in reducing costs, and we've generated
significant cash to reduce debt," he said. "As we put our restructuring
behind us and shift our full focus to transforming Dana, we expect to realize
even greater benefits from our sharpened customer focus, reduced cost
structure, and technology-driven growth opportunities.
"Our recent success in securing new business with customers such as BMW,
Ford, Nissan, and Toyota, to name but a few, reflects our commitment to
technological leadership and underscores the progress we're making," he added.
"We look forward to building on the momentum of these achievements. We
remain firmly on track to achieve our projected full-year earnings of
$195 million to $215 million in 2003, and expect that earnings in 2004 will be
at least $300 million, or $2 per share," Mr. Magliochetti said.
Quarterly Conference Call Scheduled for 8:30 a.m. Tomorrow
Dana will discuss its second-quarter results and its response to the
ArvinMeritor tender offer in a conference call at 8:30 a.m. (EDT) tomorrow.
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. tomorrow. To
access this recording, please dial (800) 537-8823. A webcast replay of the
call will also be available at 1 p.m. tomorrow 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 which 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 Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Three Months Ended June 30
2003 2002
Net sales $2,541 $2,576
Revenue from lease financing
and other income 40 75
2,581 2,651
Costs and expenses
Cost of sales 2,276 2,255
Selling, general and
administrative expenses 208 219
Restructuring charges 51
Interest expense 56 65
2,540 2,590
Income before income taxes 41 61
Income tax expense (2) (15)
Minority interest (2) (3)
Equity in earnings
of affiliates 18 15
Income from continuing
operations 55 58
Loss from discontinued
operations (3) (6)
Net income $52 $52
Basic earnings (loss) per
share
Income from continuing
operations $0.38 $0.39
Loss from discontinued
operations (0.03) (0.04)
Net income $0.35 $0.35
Diluted earnings (loss) per
share
Income from continuing
operations $0.38 $0.39
Loss from discontinued
operations (0.03) (0.04)
Net income $0.35 $0.35
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)
Six Months Ended June 30
2003 2002
Net sales $4,983 $4,897
Revenue from lease financing
and other income 70 128
5,053 5,025
Costs and expenses
Cost of sales 4,459 4,309
Selling, general and
administrative expenses 409 440
Restructuring charges 88
Interest expense 115 132
4,983 4,969
Income before income taxes 70 56
Income tax expense (35)
Minority interest (4) (9)
Equity in earnings
of affiliates 35 33
Income from continuing
operations before effect
of change in accounting 101 45
Loss from discontinued
operations (8) (2)
Income before effect of
change in accounting 93 43
Effect of change in
accounting (220)
Net income (loss) $93 $(177)
Basic earnings (loss) per
share
Income from continuing
operations before effect
of change in accounting $0.69 $0.30
Loss from discontinued
operations (0.06) (0.01)
Effect of change in
accounting (1.48)
Net income (loss) $0.63 $(1.19)
Diluted earnings (loss) per
share
Income from continuing
operations before effect
of change in accounting $0.69 $0.30
Loss from discontinued
operations (0.06) (0.01)
Effect of change in
accounting (1.48)
Net income (loss) $0.63 $(1.19)
Average shares outstanding -
For Basic EPS 148 148
For Diluted EPS 149 149
Dana Corporation
Condensed Balance Sheet (Unaudited)
(in millions)
June 30 December 31
Assets 2003 2002
Current assets
Cash and cash equivalents $632 $571
Accounts receivable
Trade 1,537 1,348
Other 283 320
Inventories 1,155 1,116
Other current assets 692 763
Total current assets 4,299 4,118
Property, plant and
equipment, net 2,492 2,556
Investment in leases 697 827
Investments and other assets 2,122 2,052
Total assets $9,610 $9,553
Liabilities and Shareholders'
Equity
Current liabilities
Notes payable $463 $287
Accounts payable 1,132 1,004
Other current liabilities 1,244 1,533
Total current liabilities 2,839 2,824
Long-term debt 2,924 3,215
Deferred employee benefits
and other noncurrent
liabilities 1,969 1,925
Minority interest 93 107
Shareholders' equity 1,785 1,482
Total liabilities and
shareholders' equity $9,610 $9,553
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Three Months
Ended
June 30
2003 2002
Net income $52 $52
Depreciation and
amortization 99 121
Asset impairment 3 9
Gain on divestitures and
asset sales (11) (35)
Working capital decrease
(increase) (47) 59
Other (17) (2)
Net cash flows - operating
activities 79 204
Purchases of property,
plant and equipment (66) (90)
Payments received on leases 7 16
Net loans to customers 9 17
Divestitures 145 62
Asset sales 75 43
Other 3 (12)
Net cash flows - investing
activities 173 36
Net change in short-term
debt (184) (199)
Proceeds from long-term
debt 35
Payments on long-term debt (37) (33)
Dividends paid (2) (2)
Other 18 2
Net cash flows - financing
activities (205) (197)
Net change in cash and cash
equivalents 47 43
Net change in cash -
discontinued operations 1
Cash and cash equivalents -
beginning of period 584 275
Cash and cash equivalents -
end of period $632 $318
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Six Months
Ended
June 30
2003 2002
Net income (loss) $93 $(177)
Depreciation and
amortization 202 242
Asset impairment 9 30
Change in accounting for
goodwill 220
Gain on divestitures and
asset sales (22) (34)
Working capital decrease
(increase) (284) 24
Other (30) (30)
Net cash flows - operating
activities (32) 275
Purchases of property,
plant and equipment (142) (165)
Purchases of assets to be
leased (26)
Payments received on leases 16 25
Net loans to customers 11 14
Divestitures 145 72
Asset sales 179 59
Other 9 15
Net cash flows - investing
activities 218 (6)
Net change in short-term
debt (97) (211)
Proceeds from long-term
debt 285
Payments on long-term debt (43) (224)
Dividends paid (3) (3)
Other 17 3
Net cash flows - financing
activities (126) (150)
Net change in cash and cash
equivalents 60 119
Net change in cash -
discontinued operations 1
Cash and cash equivalents -
beginning of period 571 199
Cash and cash equivalents -
end of period $632 $318
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Three Months Ended June 30
2003 2002
Net sales $2,541 $2,576
Other income 25 13
2,566 2,589
Costs and expenses
Cost of sales 2,286 2,270
Selling, general and
administrative expenses 192 189
Restructuring charges 51
Interest expense 41 44
2,519 2,554
Income before income taxes 47 35
Income tax expense (18) (18)
Minority interest (2) (3)
Equity in earnings
of affiliates 28 44
Income from continuing
operations 55 58
Loss from discontinued
operations (3) (6)
Net income $52 $52
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Six Months Ended June 30
2003 2002
Net sales $4,983 $4,897
Other income 38 27
5,021 4,924
Costs and expenses
Cost of sales 4,482 4,339
Selling, general and
administrative expenses 373 384
Restructuring charges 88
Interest expense 83 89
4,938 4,900
Income before income taxes 83 24
Income tax expense (33) (34)
Minority interest (4) (9)
Equity in earnings
of affiliates 55 64
Income from continuing
operations before
effect of change in
accounting 101 45
Loss from discontinued
operations (8) (2)
Income before effect of
change in accounting 93 43
Effect of change in
accounting (220)
Net income (loss) $93 $(177)
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Balance Sheet (Unaudited)
(in millions)
June 30 December 31
Assets 2003 2002
Current assets
Cash and cash
equivalents $546 $551
Accounts receivable
Trade 1,537 1,348
Other 279 209
Inventories 1,155 1,116
Other current assets 644 716
Total current assets 4,161 3,940
Property, plant and
equipment, net 2,252 2,253
Investments and other
assets 2,484 2,375
Total assets $8,897 $8,568
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $283 $53
Accounts payable 1,132 1,004
Other current
liabilities 1,382 1,555
Total current
liabilities 2,797 2,612
Long-term debt 2,263 2,462
Deferred employee benefits
and other noncurrent
liabilities 1,960 1,906
Minority interest 92 106
Shareholders' equity 1,785 1,482
Total liabilities and
shareholders' equity $8,897 $8,568
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt
(in millions)
Three Months Ended June 30
2003 2002
Sources
Net income $52 $52
Depreciation 85 97
Asset sales 2 11
Divestitures 145
Working capital decrease
(increase) (30) 34
254 194
Uses
Capital spend (61) (70)
Dividends (2) (2)
Net changes in other
accounts (22) 6
(85) (66)
October 2001 restructuring
cash impact
After-tax charges 42
Cash payments (20) (39)
Proceeds from asset sales 17 17
(3) 20
Cash change in net debt $166 $148
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt
(in millions)
Six Months Ended June 30
2003 2002
Sources
Net income (loss) $93 $(177)
Change in accounting for
goodwill 220
Net income before goodwill
change 93 43
Depreciation 171 195
Asset sales 6 11
Divestitures 145 10
Working capital decrease
(increase) (222) 24
193 283
Uses
Capital spend (133) (134)
Dividends (3) (3)
Net changes in other
accounts (30) (26)
(166) (163)
October 2001 restructuring
cash impact
After-tax charges 79
Cash payments (64) (78)
Proceeds from asset sales 37 19
(27) 20
Cash change in net debt $ - $140
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 $2,541 $ - $ - $2,541
Other income 25 36 (21) 40
2,566 36 (21) 2,581
Costs and expenses
Cost of sales 2,286 (10) 2,276
Selling, general and
administrative expenses 192 26 (10) 208
Interest expense 41 15 56
2,519 41 (20) 2,540
Income (loss) before income
taxes 47 (5) (1) 41
Income tax benefit (expense) (18) 16 (2)
Minority interest (2) (2)
Equity in earnings
of affiliates 28 4 (14) 18
Income from continuing
operations 55 15 (15) 55
Loss from discontinued
operations (3) (3)
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 $4,983 $ - $ - $4,983
Other income 38 74 (42) 70
5,021 74 (42) 5,053
Costs and expenses
Cost of sales 4,482 (23) 4,459
Selling, general and
administrative expenses 373 55 (19) 409
Interest expense 83 32 115
4,938 87 (42) 4,983
Income (loss) before income
taxes 83 (13) - 70
Income tax benefit (expense) (33) 33 -
Minority interest (4) (4)
Equity in earnings
of affiliates 55 11 (31) 35
Income from continuing
operations 101 31 (31) 101
Loss from discontinued
operations (8) (8)
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 Statement of Income (Unaudited)
(in millions)
Three Months Ended June 30, 2002
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Basis DCC Entries dated
Net sales $2,576 $ - $ - $2,576
Other income 13 96 (34) 75
2,589 96 (34) 2,651
Costs and expenses
Cost of sales 2,270 (15) 2,255
Selling, general and
administrative expenses 189 44 (14) 219
Restructuring charges 51 51
Interest expense 44 21 65
2,554 65 (29) 2,590
Income before income taxes 35 31 (5) 61
Income tax benefit (expense) (18) 1 2 (15)
Minority interest (3) (3)
Equity in earnings
of affiliates 44 6 (35) 15
Income from continuing
operations 58 38 (38) 58
Loss from discontinued
operations (6) (6)
Net income $52 $38 $(38) $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, 2002
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Basis DCC Entries dated
Net sales $4,897 $ - $ - $4,897
Other income 27 164 (63) 128
4,924 164 (63) 5,025
Costs and expenses
Cost of sales 4,339 (30) 4,309
Selling, general and
administrative expenses 384 83 (27) 440
Restructuring charges 88 88
Interest expense 89 43 132
4,900 126 (57) 4,969
Income before income taxes 24 38 (6) 56
Income tax expense (34) (3) 2 (35)
Minority interest (9) (9)
Equity in earnings
of affiliates 64 13 (44) 33
Income from continuing
operations 45 48 (48) 45
Loss from discontinued
operations (2) (2)
Income before effect of change
in accounting 43 48 (48) 43
Effect of change in accounting (220) (220)
Net income (loss) $(177) $48 $(48) $(177)
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, 2003
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Assets Basis DCC Entries dated
Current assets
Cash and cash
equivalents $546 $86 $ - $632
Accounts receivable
Trade 1,537 1,537
Other 279 4 283
Inventories 1,155 1,155
Other current assets 644 219 (171) 692
Total current assets 4,161 309 (171) 4,299
Property, plant and
equipment, net 2,252 16 224 2,492
Investment in leases 921 (224) 697
Investments and other
assets 2,484 539 (901) 2,122
Total assets $8,897 $1,785 $(1,072) $9,610
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $283 $180 $ - $463
Accounts payable 1,132 1,132
Other current
liabilities 1,382 33 (171) 1,244
Total current
liabilities 2,797 213 (171) 2,839
Long-term debt 2,263 661 2,924
Deferred employee
benefits and
other noncurrent
liabilities 1,960 604 (595) 1,969
Minority interest 92 1 93
Shareholders' equity 1,785 306 (306) 1,785
Total liabilities and
shareholders' equity $8,897 $1,785 $(1,072) $9,610
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 Consoli-
Assets 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
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 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 2 57 (1) 58
Divestitures 145 145
Working capital decrease
(increase) (30) 4 (1) (27)
254 90 (17) 327
Uses
Capital spend (61) (3) (2) (66)
Dividends (2) (2)
Net changes in other accounts (22) 27 19 24
(85) 24 17 (44)
October 2001 restructuring cash
impact
Cash payments (20) (20)
Proceeds from asset sales 17 17
(3) - - (3)
Cash change in net debt $166 $114 $ - $280
Analysis of components of
increase (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 (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
(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 6 137 (1) 142
Divestitures 145 145
Working capital decrease
(increase) (222) (4) 6 (220)
193 195 (26) 362
Uses
Capital spend (133) (8) (1) (142)
Dividends (3) (3)
Net changes in other accounts (30) 25 27 22
(166) 17 26 (123)
October 2001 restructuring cash
impact
Cash payments (64) (64)
Proceeds from asset sales 37 37
(27) - - (27)
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 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.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt
(in millions)
Three Months Ended June 30, 2002
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Basis DCC Entries dated
Sources
Net income $52 $38 $(38) $52
Depreciation 97 24 121
Asset sales 11 15 26
Divestitures 62 62
Working capital decrease
(increase) 34 (9) 17 42
194 115 (6) 303
Uses
Capital spend (70) (20) (90)
Dividends (2) (2)
Net changes in other accounts 6 (23) 26 9
(66) (23) 6 (83)
October 2001 restructuring cash
impact
After-tax charges 42 42
Cash payments (39) (39)
Proceeds from asset sales 17 17
20 - - 20
Cash change in net debt $148 $92 $ - $240
Analysis of components of increase
(decrease) in net debt:
Net change in short-term debt $(91) $(108) $ - $(199)
Proceeds from long-term debt 35 35
Payments on long term debt (11) (22) (33)
Change in cash (46) 3 (43)
Cash change in net debt (148) (92) - (240)
Non-cash changes in net debt 86 5 91
Total change in net debt $(62) $(87) $ - $(149)
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)
Six Months Ended June 30, 2002
Dana
with DCC on Elimi- Dana
Equity nation Consoli-
Basis DCC Entries dated
Sources
Net income (loss) $(177) $48 $(48) $(177)
Change in accounting for
goodwill 220 220
Net income (loss) before
goodwill change 43 48 (48) 43
Depreciation 195 47 242
Asset sales 11 29 40
Divestitures 10 62 72
Working capital decrease
(increase) 24 (12) 11 23
283 145 (8) 420
Uses
Capital spend (134) (2) (29) (165)
Dividends (3) (3)
Net changes in other accounts (26) (14) 37 (3)
(163) (16) 8 (171)
October 2001 restructuring cash
impact
After-tax charges 79 79
Cash payments (78) (78)
Proceeds from asset sales 19 19
20 - - 20
Cash change in net debt $140 $129 $ - $269
Analysis of components of
increase (decrease) in net debt:
Net change in short-term debt $(125) $(86) $ - $(211)
Proceeds from long-term debt 250 35 285
Payments on long term debt (146) (78) (224)
Change in cash (119) (119)
Cash change in net debt (140) (129) - (269)
Non-cash changes in net debt 51 5 56
Total change in net debt $(89) $(124) $ - $(213)
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 - 2003
(in millions)
Inter-Segment
External Sales Sales
03 02 03 02
Automotive Systems Group $935 $945 $31 $25
Automotive Aftermarket Group 572 587 3 4
Engine and Fluid Management Group 518 532 23 26
Heavy Vehicle Technologies and
Systems Group 500 497 20 27
Dana Commercial Credit
Other 16 15 2 3
Continuing Operations 2,541 2,576 79 85
Discontinued Operations
Unusual Items Excluded from
Performance Measurement
Effect of change in Accounting
Consolidated $2,541 $2,576 $79 $85
North America $1,811 $1,969 $21 $7
Europe 452 385 22 19
South America 138 130 47 47
Asia Pacific 140 92 -
Dana Commercial Credit
Other
Continuing Operations 2,541 2,576 90 73
Discontinued Operations
Unusual Items Excluded from
Performance Measurement
Effect of change in Accounting
Consolidated $2,541 $2,576 $90 $73
Information for Discontinued
Operations 75 213 3 17
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
Q2 - 2003
(in millions)
EBIT Operating PAT
03 02 03 02
Automotive Systems Group $56 $66 $46 $50
Automotive Aftermarket Group 28 54 18 33
Engine and Fluid Management Group 34 41 22 27
Heavy Vehicle Technologies and
Systems Group 30 37 18 23
Dana Commercial Credit 6 7
Other (62) (62) (62) (70)
Continuing Operations 86 136 48 70
Discontinued Operations (2) (5) (1) (3)
Unusual Items Excluded from
Performance Measurement (8) (63) 5 (15)
Effect of change in Accounting
Consolidated $76 $68 $52 $52
North America $90 $155 $60 $97
Europe 24 11 21 13
South America 21 23 13 14
Asia Pacific 13 4 8 3
Dana Commercial Credit 6 7
Other (62) (57) (60) (64)
Continuing Operations 86 136 48 70
Discontinued Operations (2) (5) (1) (3)
Unusual Items Excluded from
Performance Measurement (8) (63) 5 (15)
Effect of change in Accounting
Consolidated $76 $68 $52 $52
Information for Discontinued
Operations
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
Q2 - 2003
(in millions)
Net Profit Net Assets
03 02 03 02
Automotive Systems Group $25 $28 $1,891 $1,845
Automotive Aftermarket Group 2 17 1,035 1,049
Engine and Fluid Management Group 10 14 1,027 976
Heavy Vehicle Technologies and
Systems Group 5 9 643 694
Dana Commercial Credit 6 7 306 250
Other (5) (8) 57
Continuing Operations 48 70 4,894 4,871
Discontinued Operations (1) (3)
Unusual Items Excluded from
Performance Measurement 5 (15)
Effect of change in Accounting
Consolidated $52 $52 $4,894 $4,871
North America $17 $53 $3,019 $3,101
Europe 10 4 1,176 1,129
South America 9 11 352 354
Asia Pacific 4 - 166 172
Dana Commercial Credit 6 7 306 250
Other 2 (5) (125) (135)
Continuing Operations 48 70 4,894 4,871
Discontinued Operations (1) (3)
Unusual Items Excluded from
Performance Measurement 5 (15)
Effect of change in Accounting
Consolidated $52 $52 $4,894 $4,871
Information for Discontinued
Operations (15) 381
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 Six Months Ended June 30, 2003
(in millions)
Inter-Segment
External Sales Sales
03 02 03 02
Automotive Systems Group $1,878 $1,818 $62 $46
Automotive Aftermarket Group 1,085 1,121 7 8
Engine and Fluid Management Group 1,036 1,023 46 51
Heavy Vehicle Technologies and
Systems Group 954 905 41 53
Dana Commercial Credit
Other 30 30 3 8
Continuing Operations 4,983 4,897 159 166
Discontinued Operations
Unusual Items Excluded from
Performance Measurement
Effect of change in Accounting
Consolidated $4,983 $4,897 $159 $166
North America $3,591 $3,727 $43 $18
Europe 882 751 42 37
South America 249 250 90 89
Asia Pacific 261 169 1
Dana Commercial Credit
Other
Continuing Operations 4,983 4,897 176 144
Discontinued Operations
Unusual Items Excluded from
Performance Measurement
Effect of change in Accounting
Consolidated $4,983 $4,897 $176 $144
Information for Discontinued
Operations 155 413 6 33
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For Six Months Ended June 30, 2003
(in millions)
EBIT Operating PAT
03 02 03 02
Automotive Systems Group $99 $111 $82 $88
Automotive Aftermarket Group 53 90 33 55
Engine and Fluid Management Group 70 67 45 44
Heavy Vehicle Technologies and
Systems Group 55 54 34 33
Dana Commercial Credit 12 17
Other (116) (114) (122) (135)
Continuing Operations 161 208 84 102
Discontinued Operations (9) (11) (6) (7)
Unusual Items Excluded from
Performance Measurement (8) (109) 15 (52)
Effect of change in Accounting (220)
Consolidated $144 $88 $93 $(177)
North America $164 $254 $105 $160
Europe 51 28 46 29
South America 32 32 20 19
Asia Pacific 24 6 15 4
Dana Commercial Credit 12 17
Other (110) (112) (114) (127)
Continuing Operations 161 208 84 102
Discontinued Operations (9) (11) (6) (7)
Unusual Items Excluded from
Performance Measurement (8) (109) 15 (52)
Effect of change in Accounting (220)
Consolidated $144 $88 $93 $(177)
Information for Discontinued
Operations
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For Six Months Ended June 30, 2003
(in millions)
Net Profit Net Assets
03 02 03 02
Automotive Systems Group $40 $44 $1,891 $1,845
Automotive Aftermarket Group 4 24 1,035 1,049
Engine and Fluid Management Group 23 20 1,027 976
Heavy Vehicle Technologies and
Systems Group 8 8 643 694
Dana Commercial Credit 12 17 306 250
Other (3) (11) (8) 57
Continuing Operations 84 102 4,894 4,871
Discontinued Operations (6) (7)
Unusual Items Excluded from
Performance Measurement 15 (52)
Effect of change in Accounting (220)
Consolidated $93 $(177) $4,894 $4,871
North America $26 $72 $3,019 $3,101
Europe 26 11 1,176 1,129
South America 14 13 352 354
Asia Pacific 8 (1) 166 172
Dana Commercial Credit 12 17 306 250
Other (2) (10) (125) (135)
Continuing Operations 84 102 4,894 4,871
Discontinued Operations (6) (7)
Unusual Items Excluded from
Performance Measurement 15 (52)
Effect of change in Accounting (220)
Consolidated $93 $(177) $4,894 $4,871
Information for Discontinued
Operations (15) 381
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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