Dana Corporation Reports Second-Quarter Results
PRNewswire-FirstCall
TOLEDO, Ohio
(NYSE:DCN)
Jul 20, 2005
TOLEDO, Ohio, July 20 /PRNewswire-FirstCall/ -- Dana Corporation (NYSE: DCN) today reported financial results for the second quarter of 2005, which showed significant improvement over results for the first three months of the year. Second-quarter highlights included:
- Sales of $2.6 billion were up 6 percent from the first quarter of 2005;
- The addition of $215 million in net new business for the years 2005 to
2007 raised total net new business for this period to $1.3 billion;
- Higher sales and cost savings drove operating profit improvements of 53
percent in the Automotive Systems Group and 48 percent in the Heavy
Vehicle Technologies and Systems Group; and
- Net income, exclusive of unusual items, increased to $53 million, or 35
cents per share, compared to $18 million, or 12 cents per share, during
the first three months of 2005. Unusual items in the second quarter
included a net charge of $5 million related to enactment of new Ohio
tax legislation and a $3 million net gain from the sale of certain Dana
Credit Corporation (DCC) assets. With these unusual items, net income
totaled $51 million, or 34 cents per share.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050526/CLTH003)
"In the face of continuing industry-wide challenges, Dana people have made significant progress in strengthening our company," said Dana Chairman and CEO Mike Burns. "Specifically, our lean manufacturing and value engineering programs are delivering tangible results as evidenced by the substantial profit improvement from last quarter.
"Our cost reduction and efficiency programs are essential. But equally important to achieving our goals is our aggressive pursuit of steady top-line growth," Mr. Burns said. "To this end, we are extremely pleased to report that we have added another $215 million in the second quarter to our increasingly strong -- and diverse -- book of new business."
Second-Quarter Results
Second-quarter sales in 2005 were $2.6 billion, compared to $2.3 billion during the same period last year. Earnings from continuing operations for the quarter, excluding unusual items, totaled $53 million, or 35 cents per share, compared to $59 million, or 39 cents per share, on a similar basis during the second quarter of 2004.
Net unusual charges for the second quarter of 2005 totaled $2 million. This amount included a net charge of $5 million resulting from a change in the basis of Ohio corporate taxation enacted on June 30. The accounting treatment of this change impacted the company's deferred tax assets. This charge was partially offset by a $3 million gain from the company's ongoing divestiture of DCC leasing assets.
The second quarter of 2004 included net unusual gains of $33 million associated with the sale of DCC assets and a tax benefit that we expected to realize on the sale of the automotive aftermarket operations that was completed in November 2004. Reported second-quarter 2004 net income, including net unusual gains, totaled $110 million, or 73 cents per share.
Business Unit Performance
The Heavy Vehicle Technologies and Systems Group continued to benefit from the strong commercial and off-highway markets. Its sales grew by 21 percent in the second quarter compared to the same period last year. Currency translation added $11 million to the group's sales for the second quarter of 2005. Automotive Systems Group sales for the second quarter of 2005 were up 10 percent versus the same period last year, with currency translation contributing $62 million.
Heavy Vehicle profits were up 19 percent compared to the second quarter of 2004, while Automotive Systems profits were down 15 percent over the same period. Second-quarter profits - particularly those of the Automotive Systems Group - were negatively impacted by approximately $27 million, after tax and net of customer recoveries, in additional steel costs Dana incurred compared to the second quarter of 2004. Additionally, 2005 profit after tax for the Heavy Vehicle group was favorably impacted by $4 million related to a decrease in the group's liability for warranty to reflect lower average claims costs.
2005 First-Half Results
Dana's six-month consolidated sales for 2005 were $5.1 billion. Income from continuing operations for the first half of 2005, excluding unusual items, was $71 million, or 47 cents per share. Including a net charge of $2 million for unusual items, net income for the six months was $69 million, or 46 cents per share.
In comparison, Dana's six-month consolidated sales for the first half of 2004 totaled $4.6 billion and income from continuing operations, excluding unusual items, was $109 million, or 72 cents per share. In this period, Dana reported income from discontinued operations of $48 million, or 32 cents per share, representing the automotive aftermarket businesses divested in November 2004. The $48 million included a $20 million tax benefit expected to be realized on the divestiture and a $3 million charge for divestiture-related expenses. Also during the first half of 2004, the company reported gains on the sale of DCC assets totaling $18 million. Including unusual items, net income for the first half of 2004 was $175 million.
Looking Ahead
"We are encouraged by the profit improvement we've achieved since last quarter," Mr. Burns said. "And we believe there is considerable opportunity to achieve additional cost savings and process efficiencies as our efforts gain more momentum.
"Production schedules for North American heavy trucks continue to be stronger than expected and, as a result, we are raising our estimate for full- year 2005 production to 310,000 units from 293,000 units. The off-highway market segments we serve are also expected to remain strong for the rest of the year," he said. "We're also expecting to benefit from subsiding steel costs, which will be particularly important to the Automotive Systems Group.
"However," Mr. Burns continued, "given the uncertainty surrounding North American light vehicle production in the second half of the year, we are lowering our 2005 production forecast to 15.5 million units from 15.7 million units. We are also concerned about the possible impact on sales if the dollar continues to gain strength. As a result, our earnings expectations for the full year remain unchanged at a range of $1.30 to $1.45 per share."
Quarterly Conference Call Scheduled Today at 1 p.m.
Dana will discuss its second-quarter results in a conference call at 1 p.m. (ET) 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 5 p.m. today. To access this recording, please dial (800) 537-8823. A webcast replay of the call will also be available after 5 p.m. today and will be accessible via the Dana web site.
About Dana Corporation
Dana people design and manufacture products for every major vehicle producer in the world. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. A leading supplier of axle, driveshaft, engine, frame, chassis, and transmission technologies, Dana employs 46,000 people in 28 countries. Based in Toledo, Ohio, the company reported sales of $9.1 billion in 2004. Dana's Internet address is: http://www.dana.com/.
Forward-Looking Statements
Certain statements contained in this 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; increases in commodity costs, including steel, that cannot be recouped in product pricing; our ability and that of our customers to achieve projected sales and production levels; the continued availability of necessary goods and services from our suppliers; competitive pressures on our sales and pricing; the success of our cost reduction, cash management, and long-term transformation programs, and our U.S. tax loss carryforward utilization strategies, and other factors set out in our public filings with the Securities and Exchange Commission. Dana does not undertake to update any forward-looking statements in this release.
Dana Corporation
Financial Summary (Unaudited)
(in millions, except per share amounts)
Three Months Ended June 30
2005 2004
Sales $2,632 $2,331
Income from continuing operations $51 $75
Income from discontinued operations 35
Net income $51 $110
Income from continuing operations $51 $75
Net gains associated with DCC asset sales (3) (16)
Charge related to Ohio tax legislation 5
Income from continuing operations,
excluding unusual items $53 $59
Income from discontinued operations $- $35
Anticipated tax benefit related to sale
of automotive aftermarket business (20)
Charges related to sales of
discontinued operations 3
Income from discontinued operations,
excluding unusual items $- $18
Diluted earnings per share:
Income from continuing operations $0.34 $0.50
Income from discontinued operations 0.23
Net income $0.34 $0.73
Income from continuing operations,
excluding unusual items $0.35 $0.39
Income from discontinued operations,
excluding unusual items 0.12
Net income, excluding unusual items 0.35 0.51
Unusual items (0.01) 0.22
Net income $0.34 $0.73
Dana Corporation
Financial Summary (Unaudited)
(in millions, except per share amounts)
Six Months Ended June 30
2005 2004
Sales $5,120 $4,642
Income from continuing operations $69 $127
Income from discontinued operations 48
Net income $69 $175
Income from continuing operations $69 $127
Net gains associated with DCC
asset sales (3) (18)
Charge related to Ohio tax legislation 5
Income from continuing operations,
excluding unusual items $71 $109
Income from discontinued operations $- $48
Anticipated tax benefit related to sale
of automotive aftermarket business (20)
Charges related to sale of
discontinued operations 3
Income from discontinued operations,
excluding unusual items $- $31
Diluted earnings per share:
Income from continuing operations $0.46 $0.84
Income from discontinued operations 0.32
Net income $0.46 $1.16
Income from continuing operations,
excluding unusual items $0.47 $0.72
Income from discontinued operations,
excluding unusual items 0.21
Net income, excluding unusual items 0.47 0.93
Unusual items (0.01) 0.23
Net income $0.46 $1.16
Dana Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Three Months Ended June 30
2005 2004
Net sales $2,632 $2,331
Revenue from lease financing
and other income 25 25
2,657 2,356
Costs and expenses
Cost of sales 2,428 2,101
Selling, general and
administrative expenses 136 124
Interest expense 40 51
2,604 2,276
Income before income taxes 53 80
Income tax expense (10) (6)
Minority interest (3) (3)
Equity in earnings of affiliates 11 4
Income from continuing operations 51 75
Income from discontinued operations 35
Net income $51 $110
Basic earnings per share
Income from continuing operations $0.34 $0.51
Income from discontinued operations 0.23
Net income $0.34 $0.74
Diluted earnings per share
Income from continuing operations $0.34 $0.50
Income from discontinued operations 0.23
Net income $0.34 $0.73
Average shares outstanding -
For Basic EPS 150 149
For Diluted EPS 151 151
Dana Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Six Months Ended June 30
2005 2004
Net sales $5,120 $4,642
Revenue from lease financing
and other income 57 39
5,177 4,681
Costs and expenses
Cost of sales 4,753 4,206
Selling, general and
administrative expenses 274 258
Interest expense 83 102
5,110 4,566
Income before income taxes 67 115
Income tax expense (10) (3)
Minority interest (6) (6)
Equity in earnings of affiliates 18 21
Income from continuing operations 69 127
Income from discontinued operations 48
Net income $69 $175
Basic earnings per share
Income from continuing operations $0.46 $0.86
Income from discontinued operations 0.32
Net income $0.46 $1.18
Diluted earnings per share
Income from continuing operations $0.46 $0.84
Income from discontinued operations 0.32
Net income $0.46 $1.16
Average shares outstanding -
For Basic EPS 150 148
For Diluted EPS 151 150
Dana Corporation
Condensed Balance Sheet (Unaudited)
(in millions)
June 30 December 31
Assets 2005 2004
Current assets
Cash and cash equivalents $666 $634
Accounts receivable
Trade 1,478 1,266
Other 295 444
Inventories 920 907
Other current assets 276 217
Total current assets 3,635 3,468
Investment in leases 246 281
Investments and other assets 3,037 3,145
Property, plant and equipment, net 1,998 2,153
Total assets $8,916 $9,047
Liabilities and Shareholders' Equity
Current liabilities
Notes payable $409 $155
Accounts payable 1,356 1,317
Other current liabilities 1,006 1,217
Total current liabilities 2,771 2,689
Long-term debt 1,979 2,054
Deferred employee benefits and other
noncurrent liabilities 1,677 1,746
Minority interest 131 123
Shareholders' equity 2,358 2,435
Total liabilities and
shareholders' equity $8,916 $9,047
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Three Months Ended June 30
2005 2004
Net income $51 $110
Depreciation and amortization 80 90
Gain on divestitures and asset sales (4) (21)
Working capital decrease (increase) (21) 58
Deferred taxes (23) (46)
Other (47) (74)
Net cash flows - operating activities 36 117
Purchases of property, plant
and equipment (62) (63)
Payments received on leases and loans 1 4
Asset sales 102 52
Other (17) (41)
Net cash flows - investing activities 24 (48)
Net change in short-term debt 61 38
Payments on long-term debt (25) (45)
Dividends paid (18) (18)
Other (2) 5
Net cash flows - financing activities 16 (20)
Net change in cash and cash equivalents 76 49
Net change in cash -
discontinued operations 2
Cash and cash equivalents -
beginning of period 590 546
Cash and cash equivalents -
end of period $666 $597
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Six Months Ended June 30
2005 2004
Net income $69 $175
Depreciation and amortization 163 183
Gain on divestitures and asset sales (5) (25)
Working capital increase (287) (164)
Deferred taxes (35) (41)
Other (72) (73)
Net cash flows - operating activities (167) 55
Purchases of property, plant
and equipment (132) (142)
Payments received on leases and loans 5 8
Payments received from DCC partnerships 64 15
Asset sales 137 155
Other (16) (55)
Net cash flows - investing activities 58 (19)
Net change in short-term debt 225 153
Proceeds from long-term debt 5
Payments on long-term debt (45) (304)
Dividends paid (36) (36)
Other (3) 10
Net cash flows - financing activities 141 (172)
Net change in cash and cash
equivalents 32 (136)
Net change in cash -
discontinued operations 2
Cash and cash equivalents -
beginning of period 634 731
Cash and cash equivalents -
end of period $666 $597
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Three Months Ended June 30
2005 2004
Net sales $2,632 $2,331
Other income 25 13
2,657 2,344
Costs and expenses
Cost of sales 2,432 2,108
Selling, general and
administrative expenses 126 123
Interest expense 33 39
2,591 2,270
Income before income taxes 66 74
Income tax expense (27) (27)
Minority interest (3) (3)
Equity in earnings of affiliates 15 31
Income from continuing operations 51 75
Income from discontinued operations 35
Net income $51 $110
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Six Months Ended June 30
2005 2004
Net sales $5,120 $4,642
Other income 43 20
5,163 4,662
Costs and expenses
Cost of sales 4,762 4,222
Selling, general and
administrative expenses 257 243
Interest expense 67 77
5,086 4,542
Income before income taxes 77 120
Income tax expense (27) (38)
Minority interest (6) (6)
Equity in earnings of affiliates 25 51
Income from continuing operations 69 127
Income from discontinued operations 48
Net income $69 $175
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Balance Sheet (Unaudited)
(in millions)
June 30 December 31
Assets 2005 2004
Current assets
Cash and cash equivalents $651 $619
Accounts receivable
Trade 1,478 1,266
Other 295 445
Inventories 920 907
Other current assets 256 192
Total current assets 3,600 3,429
Investments and other assets 3,245 3,337
Property, plant and equipment, net 1,943 2,015
Total assets $8,788 $8,781
Liabilities and Shareholders' Equity
Current liabilities
Notes payable $572 $289
Accounts payable 1,356 1,317
Other current liabilities 1,096 1,269
Total current liabilities 3,024 2,875
Long-term debt 1,606 1,611
Deferred employee benefits and
other noncurrent liabilities 1,671 1,739
Minority interest 129 121
Shareholders' equity 2,358 2,435
Total liabilities and
shareholders' equity $8,788 $8,781
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Three Months Ended June 30
2005 2004
Sources
Net income $51 $110
Depreciation 75 82
Asset sales 4 19
Working capital decrease (increase) (12) 65
Other 16 -
134 276
Uses
Capital spend (62) (63)
Dividends (18) (18)
Restructuring cash payments (15) (26)
Deferred taxes (9) (54)
Net changes in other accounts (11) (109)
(115) (270)
Cash change in net debt $19 $6
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Six Months Ended June 30
2005 2004
Sources
Net income $69 $175
Depreciation 153 165
Asset sales 23 33
Working capital increase (262) (115)
(17) 258
Uses
Capital spend (132) (139)
Dividends (36) (36)
Restructuring cash payments (23) (49)
Deferred taxes (39) (50)
Net changes in other accounts (1) (101)
(231) (375)
Cash change in net debt $(248) $(117)
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Three Months Ended June 30, 2005
Dana
with DCC on Elimination Dana
Equity Basis DCC Entries Consolidated
Net sales $2,632 $ $ $2,632
Other income (expense) 25 8 (8) 25
2,657 8 (8) 2,657
Costs and expenses
Cost of sales 2,432 (4) 2,428
Selling, general and
administrative expenses 126 12 (2) 136
Interest expense 33 9 (2) 40
2,591 21 (8) 2,604
Income (loss) before income
taxes 66 (13) - 53
Income tax benefit (expense) (27) 17 (10)
Minority interest (3) (3)
Equity in earnings of
affiliates 15 1 (5) 11
Income from continuing
operations 51 5 (5) 51
Net income $51 $5 $(5) $51
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, 2005
Dana
with DCC on Elimination Dana
Equity Basis DCC Entries Consolidated
Net sales $5,120 $ $ $5,120
Other income (expense) 43 31 (17) 57
5,163 31 (17) 5,177
Costs and expenses
Cost of sales 4,762 (9) 4,753
Selling, general and
administrative expenses 257 22 (5) 274
Interest expense 67 19 (3) 83
5,086 41 (17) 5,110
Income (loss) before income
taxes 77 (10) - 67
Income tax benefit (expense) (27) 17 (10)
Minority interest (6) (6)
Equity in earnings
of affiliates 25 6 (13) 18
Income from continuing
operations 69 13 (13) 69
Net income $69 $13 $(13) $69
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, 2004
Dana
with DCC on Elimination Dana
Equity Basis DCC Entries Consolidated
Net sales $2,331 $ $ $2,331
Other income (expense) 13 24 (12) 25
2,344 24 (12) 2,356
Costs and expenses
Cost of sales 2,108 (7) 2,101
Selling, general and
administrative expenses 123 6 (5) 124
Interest expense 39 12 51
2,270 18 (12) 2,276
Income before income taxes 74 6 - 80
Income tax benefit (expense) (27) 21 (6)
Minority interest (3) (3)
Equity in earnings
of affiliates 31 (2) (25) 4
Income from continuing
operations 75 25 (25) 75
Income from discontinued
operations 35 35
Net income $110 $25 $(25) $110
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Six Months Ended June 30, 2004
Dana
with DCC on Elimination Dana
Equity Basis DCC Entries Consolidated
Net sales $4,642 $ $ $4,642
Other income (expense) 20 46 (27) 39
4,662 46 (27) 4,681
Costs and expenses
Cost of sales 4,222 (16) 4,206
Selling, general and
administrative expenses 243 26 (11) 258
Interest expense 77 25 102
4,542 51 (27) 4,566
Income (loss) before income
taxes 120 (5) - 115
Income tax benefit (expense) (38) 35 (3)
Minority interest (6) (6)
Equity in earnings
of affiliates 51 4 (34) 21
Income from continuing
operations 127 34 (34) 127
Income from discontinued
operations 48 48
Net income $175 $34 $(34) $175
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, 2005
Dana
with DCC on Elimination Dana
Assets Equity Basis DCC Entries Consolidated
Current assets
Cash and cash
equivalents $651 $15 $ $666
Accounts receivable
Trade 1,478 1,478
Other 295 268 (268) 295
Inventories 920 920
Other current assets 256 172 (152) 276
Total current assets 3,600 455 (420) 3,635
Investment in leases 293 (47) 246
Investments and other
assets 3,245 400 (608) 3,037
Property, plant and
equipment, net 1,943 8 47 1,998
Total assets $8,788 $1,156 $(1,028) $8,916
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $572 $98 $(261) $409
Accounts payable 1,356 1,356
Other current
liabilities 1,096 69 (159) 1,006
Total current
liabilities 3,024 167 (420) 2,771
Long-term debt 1,606 373 1,979
Deferred employee
benefits and other
noncurrent liabilities 1,671 305 (299) 1,677
Minority interest 129 2 131
Shareholders' equity 2,358 309 (309) 2,358
Total liabilities and
shareholders' equity $8,788 $1,156 $(1,028) $8,916
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC)
on an equity basis to amounts reported for Dana Corporation on
a fully consolidated basis.
Dana Corporation
Condensed Consolidating Balance Sheet (Unaudited)
(in millions)
December 31, 2004
Dana
with DCC on Elimination Dana
Assets Equity Basis DCC Entries Consolidated
Current assets
Cash and cash
equivalents $619 $15 $ $634
Accounts receivable
Trade 1,266 1,266
Other 445 208 (209) 444
Inventories 907 907
Other current assets 192 137 (112) 217
Total current assets 3,429 360 (321) 3,468
Investment in leases 411 (130) 281
Investments and other
assets 3,337 467 (659) 3,145
Property, plant and
equipment, net 2,015 8 130 2,153
Total assets $8,781 $1,246 $(980) $9,047
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $289 $68 $(202) $155
Accounts payable 1,317 1,317
Other current
liabilities 1,269 67 (119) 1,217
Total current
liabilities 2,875 135 (321) 2,689
Long-term debt 1,611 443 2,054
Deferred employee benefits
and other noncurrent
liabilities 1,739 316 (309) 1,746
Minority interest 121 2 123
Shareholders' equity 2,435 350 (350) 2,435
Total liabilities and
shareholders' equity $8,781 $1,246 $(980) $9,047
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC)
on an equity basis to amounts reported for Dana Corporation on
a fully consolidated basis.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Three Months Ended June 30, 2005
Dana
with DCC on Elimination Dana
Equity Basis DCC Entries Consolidated
Sources
Net income $51 $5 $(5) $51
Depreciation 75 5 80
Asset sales 4 98 102
Working capital decrease
(increase) (12) 6 - (6)
Other 16 (48) (38) (70)
134 66 (43) 157
Uses
Capital spend (62) (62)
Dividends (18) (50) 50 (18)
Restructuring cash payments (15) (15)
Deferred taxes (9) (14) (23)
Net changes in other accounts (11) 13 (1) 1
(115) (51) 49 (117)
Cash change in net debt $19 $15 $6 $40
Analysis of components of
decrease in net debt:
Net change in short-term debt $68 $(1) $(6) $61
Net payments on long-term debt (25) (25)
Change in cash - continuing
operations (87) 11 (76)
Cash change in net debt (19) (15) (6) (40)
Non-cash changes in net debt 2 (1) 1
Total change in net debt $(17) $(16) $(6) $(39)
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on an
equity basis to amounts presented for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Six Months Ended June 30, 2005
Dana
with DCC on Elimination Dana
Equity Basis DCC Entries Consolidated
Sources
Net income $69 $13 $(13) $69
Depreciation 153 10 163
Asset sales 23 114 132
Working capital decrease
(increase) (262) (2) (264)
(17) 135 (13) 105
Uses
Capital spend (132) (132)
Dividends (36) (50) 50 (36)
Restructuring cash payments (23) (23)
Deferred taxes (39) 4 (35)
Payments received from DCC
partnerships - 64 64
Net changes in other accounts (1) (113) 23 (91)
(231) (95) 73 (253)
Cash change in net debt $(248) $40 $60 $(148)
Analysis of components of
increase (decrease) in
net debt:
Net change in short-term debt $286 $(1) $(60) $225
Net payments on long-term debt (6) (39) (45)
Change in cash - continuing
operations (32) (32)
Cash change in net debt 248 (40) (60) 148
Non-cash changes in net debt (2) (2)
Total change in net debt $246 $(40) $(60) $146
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on an
equity basis to amounts presented for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Three Months Ended June 30, 2004
Dana
with DCC on Elimination Dana
Equity Basis DCC Entries Consolidated
Sources
Net income $110 $25 $(25) $110
Depreciation 82 8 90
Asset sales 19 36 (3) 52
Working capital decrease 65 7 12 84
276 76 (16) 336
Uses
Capital spend (63) (3) 3 (63)
Dividends (18) (18)
Realignment cash payments (26) (26)
Deferred taxes (54) 8 (46)
Net changes in other accounts (109) (29) 13 (125)
(270) (24) 16 (278)
Cash change in net debt $6 $52 $- $58
Analysis of components of
decrease in net debt:
Net change in short-term debt $38 $- $ $38
Net payments on long-term debt 3 (48) (45)
Change in cash - continuing
operations (47) (4) (51)
Cash change in net debt (6) (52) - (58)
Non-cash changes in net debt (49) - (49)
Total change in net debt $(55) $(52) $- $(107)
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on an
equity basis to amounts presented for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Six Months Ended June 30, 2004
Dana
with DCC on Elimination Dana
Equity Basis DCC Entries Consolidated
Sources
Net income $175 $34 $(34) $175
Depreciation 165 18 183
Asset sales 33 125 (3) 155
Working capital decrease
(increase) (115) (1) 1 (115)
Other - - - -
258 176 (36) 398
Uses
Capital spend (139) (6) 3 (142)
Dividends (36) (36)
Restructuring cash payments (49) (49)
Deferred taxes (50) 9 (41)
Net changes in other accounts (101) (52) 33 (120)
(375) (49) 36 (388)
Cash change in net debt $(117) $127 $- $10
Analysis of components of
increase (decrease) in
net debt:
Net change in short-term debt $183 $(30) $ $153
Net payments on long-term debt (234) (65) (299)
Change in cash - continuing
operations 166 (32) 134
Change in cash - discontinued 2 2
Cash change in net debt 117 (127) - (10)
Non-cash changes in net debt (33) (27) (60)
Total change in net debt $84 $(154) $- $(70)
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on an
equity basis to amounts presented for Dana Corporation on a
fully consolidated basis.
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Three Months Ended June 30, 2005
(in millions)
Inter-Segment
External Sales Sales
05 04 05 04
Automotive Systems Group $1,914 $1,719 $34 $47
Heavy Vehicle Technologies and
Systems Group 711 588 1 1
Dana Commercial Credit
Other 7 24 16 16
Continuing Operations 2,632 2,331 51 64
Discontinued Operations
Unusual Items Excluded from
Performance Measurement
Consolidated $2,632 $2,331 $51 $64
North America $1,635 $1,577 $27 $25
Europe 553 442 34 31
South America 245 153 66 50
Asia Pacific 199 159 2 13
Dana Commercial Credit
Other
Continuing Operations 2,632 2,331 129 119
Discontinued Operations
Unusual Items Excluded from
Performance Measurement
Consolidated $2,632 $2,331 $129 $119
Information for Discontinued
Operations 557 5
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Three Months Ended June 30, 2005
(in millions)
EBIT Operating PAT
05 04 05 04
Automotive Systems Group $85 $109 $61 $72
Heavy Vehicle Technologies and
Systems Group 59 51 37 31
Dana Commercial Credit 3 5
Other (61) (46) (48) (49)
Continuing Operations 83 114 53 59
Discontinued Operations 30 18
Unusual Items Excluded from
Performance Measurement 9 (8) (2) 33
Consolidated $92 $136 $51 $110
North America $32 $80 $21 $48
Europe 54 37 38 26
South America 34 27 21 17
Asia Pacific 18 10 11 7
Dana Commercial Credit 3 5
Other (55) (40) (41) (44)
Continuing Operations 83 114 53 59
Discontinued Operations 30 18
Unusual Items Excluded from
Performance Measurement 9 (8) (2) 33
Consolidated $92 $136 $51 $110
Information for Discontinued
Operations
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Three Months Ended June 30, 2005
(in millions)
Net Profit Net Assets
05 04 05 04
Automotive Systems Group $25 $44 $3,121 $2,986
Heavy Vehicle Technologies and
Systems Group 20 18 779 632
Dana Commercial Credit 3 5 309 325
Other 5 (8) (102) (61)
Continuing Operations 53 59 4,107 3,882
Discontinued Operations 18
Unusual Items Excluded from
Performance Measurement (2) 33
Consolidated $51 $110 $4,107 $3,882
North America $(8) $24 $2,382 $2,206
Europe 29 19 1,145 1,096
South America 17 14 430 327
Asia Pacific 7 3 190 159
Dana Commercial Credit 3 5 309 325
Other 5 (6) (349) (231)
Continuing Operations 53 59 4,107 3,882
Discontinued Operations 18
Unusual Items Excluded from
Performance Measurement (2) 33
Consolidated $51 $110 $4,107 $3,882
Information for Discontinued
Operations 962
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Six Months Ended June 30, 2005
(in millions)
Inter-Segment
External Sales Sales
05 04 05 04
Automotive Systems Group $3,724 $3,431 $71 $92
Heavy Vehicle Technologies and
Systems Group 1,381 1,161 2 2
Dana Commercial Credit
Other 15 50 30 32
Continuing Operations 5,120 4,642 103 126
Discontinued Operations
Unusual Items Excluded from
Performance Measurement
Consolidated $5,120 $4,642 $103 $126
North America $3,221 $3,171 $54 $52
Europe 1,085 880 76 61
South America 454 283 125 94
Asia Pacific 360 308 7 14
Dana Commercial Credit
Other
Continuing Operations 5,120 4,642 262 221
Discontinued Operations
Unusual Items Excluded from
Performance Measurement
Consolidated $5,120 $4,642 $262 $221
Information for Discontinued
Operations 1,067 9
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Six Months Ended June 30, 2005
(in millions)
EBIT Operating PAT
05 04 05 04
Automotive Systems Group $144 $212 $101 $143
Heavy Vehicle Technologies and
Systems Group 99 91 62 55
Dana Commercial Credit 9 12
Other (120) (106) (101) (101)
Continuing Operations 123 197 71 109
Discontinued Operations 55 31
Unusual Items Excluded from
Performance Measurement 7 (9) (2) 35
Consolidated $130 $243 $69 $175
North America $56 $163 $33 $102
Europe 92 67 64 48
South America 56 45 35 28
Asia Pacific 28 18 18 12
Dana Commercial Credit 9 12
Other (109) (96) (88) (93)
Continuing Operations 123 197 71 109
Discontinued Operations 55 31
Unusual Items Excluded from
Performance Measurement 7 (9) (2) 35
Consolidated $130 $243 $69 $175
Information for Discontinued
Operations
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Six Months Ended June 30, 2005
(in millions)
Net Profit Net Assets
05 04 05 04
Automotive Systems Group $30 $84 $3,121 $2,986
Heavy Vehicle Technologies and
Systems Group 28 28 779 632
Dana Commercial Credit 9 12 309 325
Other 4 (15) (102) (61)
Continuing Operations 71 109 4,107 3,882
Discontinued Operations 31
Unusual Items Excluded from
Performance Measurement (2) 35
Consolidated $69 $175 $4,107 $3,882
North America $(24) $49 $2,382 $2,206
Europe 45 33 1,145 1,096
South America 27 23 430 327
Asia Pacific 10 5 190 159
Dana Commercial Credit 9 12 309 325
Other 4 (13) (349) (231)
Continuing Operations 71 109 4,107 3,882
Discontinued Operations 31
Unusual Items Excluded from
Performance Measurement (2) 35
Consolidated $69 $175 $4,107 $3,882
Information for Discontinued
Operations 962
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SOURCE: Dana Corporation
Web site: http://www.dana.com/
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