Dana Corporation Announces Year-End Results and Progress on Restructuring Actions
Feb 13, 2002
TOLEDO, Ohio, Feb. 13 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) today announced sales of $10.3 billion for the year ended Dec. 31,
2001, down 17 percent from 2000. The company reported a net loss for the year
of $298 million, or $2.01 per share on a diluted basis, after net non-
recurring charges of $303 million. Income excluding these non-recurring items
was $5 million, or 4 cents per share. In 2000, reported net income was
$334 million ($2.18 per share) after net non-recurring charges, and income
excluding non-recurring items was $377 million ($2.46 per share).
(Photo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
Sales for the fourth quarter of 2001 were $2.4 billion, down from
$2.7 billion for the same period last year. The company reported a fourth-
quarter net loss of $298 million ($2.01 per share) after net non-recurring
charges of $284 million. The loss for the quarter, excluding the non-
recurring items, was $14 million, or 9 cents per share on a diluted basis. In
the fourth quarter of 2000, the net loss was $84 million (53 cents per share)
after net non-recurring charges, and income excluding non-recurring items was
$2 million (1 cent per share).
Most of the 2001 non-recurring charges relate to a major restructuring
plan announced in October, which called for a further work-force reduction of
more than 15 percent and the closure or consolidation of more than 30 Dana
facilities. Declining production schedules over the past two years had
already required a 12-percent work-force reduction that affected all levels of
the organization.
The plan's additional and accelerated actions followed the sharp declines
in light-vehicle production schedules in the third quarter. Record levels of
incentives drove strong light-vehicle sales in the fourth quarter. Vehicle
manufacturers met this demand from existing inventories and continued to cut
production, which impacted Dana's sales. Similarly, heavy-truck production,
which had already experienced a historic drop, slowed another 13 percent from
the third to fourth quarter.
"Given the most recent trends and the general economic outlook, we
continue to be cautious about the prospects for recovery in our markets in the
near term," said Dana Chairman and CEO Joe Magliochetti. "That's why the
rapid execution of our restructuring plan continues to be our primary focus.
These actions will reduce our break-even point and enable us to improve our
performance even if our markets remain weak.
"Since announcing our plan in October, we have made solid progress with
our restructuring actions. We have already reduced the work force by 7
percent and announced the closure of 21 facilities. At the same time, we're
building a strong book of business for the future."
During 2001, Dana announced several new programs, including:
* Hydroformed structures for a new series of Ford trucks;
* Newly designed light axle products for BMW, Land Rover, and Nissan; and
* Medium and heavy axles and drivelines for PACCAR, Inc., and medium
axles for International Truck.
"Our operations also did an outstanding job of managing working capital,"
added Bob Richter, chief financial officer. "This allowed us to significantly
reduce debt in the fourth quarter. We will continue to manage the business
for cash, and expect that our free cash flow in 2002 will be more than
sufficient to fund our restructuring actions and further reduce our debt. We
currently estimate that the cash requirement for our restructuring program
will be less than $300 million in 2002."
Dana will hold a conference call at 10 a.m. (EST) today to discuss its
2001 results. The call may be accessed via Dana's website ( http://www.dana.com ),
where it will be accompanied by a slide presentation, or by dialing
(800) 275-3210. Please dial into the conference 15 minutes prior to the call.
A recording of this conference call will be available after 1 p.m. (EST)
today. To access this recording, please dial (800) 537-8823.
Dana Corporation is one of the world's largest suppliers to vehicle
manufacturers and their related aftermarkets. Founded in 1904 and based in
Toledo, Ohio, the company operates some 300 major facilities and employs
approximately 70,000 people in 34 countries. Dana's Internet address is
http://www.dana.com .
Certain statements contained herein (including our forecasts, beliefs, and
expectations) constitute "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements
involve assumptions, uncertainties, and risks, and Dana's actual results,
performance, or achievements may differ materially from those expressed or
implied in these statements. Among the factors that could affect Dana's
actual results are the impact of national and international economic
conditions (including additional adverse effects from terrorism or
hostilities) on production and sales by the company's vehicular customers; the
company's ability to complete the sale of the Dana Commercial Credit
businesses as contemplated; and the success and timing of the company's
restructuring, cost reduction and cash management programs. Additional
factors are contained in Dana's public filings with the Securities and
Exchange Commission. Dana does not undertake to update any forward-looking
statements contained herein.
Dana Corporation
(in millions, except
per share amounts)
Unaudited
Three Months Ended December 31
2000 2001
Sales $2,688 $2,373
Net Income (Loss), excluding
non-recurring items 2 (14)
Non-recurring items
Severance costs (9) (100)
Exit and other costs (61) (69)
Asset impairment charges (16) (115)
(86) (284)
Net Loss, including non-recurring items (84) (298)
Net Income (Loss) Per Common Share,
excluding non-recurring items -
Diluted 0.01 (0.09)
Net Loss Per Common Share, including
non-recurring items -
Basic (0.57) (2.01)
Diluted (0.57) (2.01)
Average Shares Outstanding -
For Basic EPS 148 148
For Diluted EPS 149 148
Year Ended December 31
2000 2001
Sales $12,317 $10,271
Net Income, excluding non-recurring items 377 5
Non-recurring items
Severance costs (49) (113)
Exit and other costs (84) (79)
Asset impairment charges (16) (121)
Gain on divestitures 106 10
(43) (303)
Net Income (Loss), including
non-recurring items 334 (298)
Net Income Per Common Share,
excluding non-recurring items -
Diluted 2.46 0.04
Net Income (Loss) Per Common Share,
including non-recurring items -
Basic 2.20 (2.01)
Diluted 2.18 (2.01)
Average Shares Outstanding -
For Basic EPS 152 148
For Diluted EPS 153 148
Dana Corporation
Statement of Income (Unaudited)
December 31, 2001
(in millions, except per share amounts)
Three Months Ended December 31
2000 2001
Net sales $2,688 $2,373
Revenue from lease financing
and other income 66 49
2,754 2,422
Costs and expenses
Cost of sales 2,438 2,262
Selling, general and
administrative expenses 285 210
Restructuring and
integration charges 70 352
Interest expense 85 70
2,878 2,894
Loss before income taxes (124) (472)
Estimated taxes on income 36 167
Minority interest (1) (2)
Equity in earnings
of affiliates 5 9
Net loss $(84) $(298)
Net loss per common share -
Basic $(0.57) $(2.01)
Diluted $(0.57) $(2.01)
Average shares outstanding -
For Basic EPS 148 148
For Diluted EPS 149 148
Dana Corporation
Statement of Income
December 31, 2001
(in millions, except per share amounts)
Year Ended December 31
2000 2001
Net sales $12,317 $10,271
Revenue from lease financing
and other income 374 198
12,691 10,469
Costs and expenses
Cost of sales 10,599 9,268
Selling, general and
administrative expenses 1,132 985
Restructuring and
integration charges 173 390
Interest expense 323 309
12,227 10,952
Income (loss) before income taxes 464 (483)
Estimated taxes on income (171) 161
Minority interest (13) (8)
Equity in earnings
of affiliates 54 32
Net income (loss) $334 $(298)
Net income (loss) per common share -
Basic $2.20 $(2.01)
Diluted $2.18 $(2.01)
Average shares outstanding -
For Basic EPS 152 148
For Diluted EPS 153 148
Dana Corporation
Condensed Balance Sheet
December 31, 2001
(in millions)
December 31 December 31
Assets 2000 2001
Current assets
Cash and marketable securities $179 $199
Accounts receivable
Trade 1,548 1,371
Other 318 371
Inventories 1,564 1,299
Other current assets 714 557
Total current assets 4,323 3,797
Property, plant and equipment, net 3,509 3,133
Investment in leases 1,037 1,068
Investments and other assets 2,367 2,209
Total assets $11,236 $10,207
Liabilities and Shareholders' Equity
Accounts payable and other
current liabilities $2,386 $2,369
Notes payable 1,945 1,120
Total current liabilities 4,331 3,489
Long-term debt 2,649 3,008
Deferred employee benefits
and other noncurrent liabilities 1,507 1,640
Minority interest 121 112
Shareholders' equity 2,628 1,958
Total liabilities and
shareholders' equity $11,236 $10,207
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
December 31, 2001
(in millions)
Three Months Ended December 31
2000 2001
Net loss $(84) $(298)
Depreciation and amortization 133 139
Asset impairment 27 196
Working capital change 551 488
Other (25) (244)
Net cash from operating activities 602 281
Purchases of property, plant and
equipment (198) (119)
Purchases of assets to be leased (49) (1)
Payments received on leases 77 20
Net loans to customers 65 9
Acquisitions (232) -
Divestitures 9 4
Other (92) 94
Net cash flows - investing activities (420) 7
Net change in short-term debt (44) (246)
Proceeds from long-term debt 57 51
Payments on long-term debt (116) (118)
Dividends paid (45) (1)
Other 1 (4)
Net cash flows - financing activities (147) (318)
Net change in cash and cash
equivalents 35 (30)
Cash and cash equivalents -
beginning of period 144 229
Cash and cash equivalents - end of
period $179 $199
Dana Corporation
Condensed Statement of Cash Flows
December 31, 2001
(in millions)
Year Ended December 31
2000 2001
Net income (loss) $334 $(298)
Depreciation and amortization 523 548
Asset impairment 27 206
Gain on divestitures (106) (10)
Working capital change 282 407
Other (76) (214)
Net cash from operating activities 984 639
Purchases of property, plant and
equipment (662) (425)
Purchases of assets to be leased (191) (50)
Payments received on leases 146 48
Net loans to customers (82) 112
Acquisitions (511) (21)
Divestitures 571 236
Other (65) 179
Net cash flows - investing activities (794) 79
Net change in short-term debt 577 (888)
Proceeds from long-term debt 368 847
Payments on long-term debt (504) (501)
Dividends paid (187) (140)
Shares repurchased (381) -
Other 5 (16)
Net cash flows - financing activities (122) (698)
Net change in cash and cash
equivalents 68 20
Cash and cash equivalents -
beginning of period 111 179
Cash and cash equivalents - end of
period $179 $199
Dana Corporation
(Including Dana Credit Corporation on the Equity Basis)
Statement of Income (Unaudited)
December 31, 2001
(in millions)
Three Months Ended December 31
2000 2001
Net sales $2,688 $2,373
Other income 7 7
2,695 2,380
Costs and expenses
Cost of sales 2,454 2,281
Selling, general and
administrative expenses 237 197
Restructuring and
integration charges 70 352
Interest expense 55 49
2,816 2,879
Loss before income taxes (121) (499)
Estimated taxes on income 36 174
Minority interest (1) (2)
Equity in earnings
of affiliates 2 29
Net loss $(84) $(298)
Dana Corporation
(Including Dana Credit Corporation on the Equity Basis)
Statement of Income (Unaudited)
December 31, 2001
(in millions)
Year Ended December 31
2000 2001
Net sales $12,317 $10,271
Other income 190 43
12,507 10,314
Costs and expenses
Cost of sales 10,662 9,335
Selling, general and
administrative expenses 1,007 895
Restructuring and
integration charges 173 390
Interest expense 218 205
12,060 10,825
Income (loss) before income taxes 447 (511)
Estimated taxes on income (168) 167
Minority interest (13) (8)
Equity in earnings
of affiliates 68 54
Net income (loss) $334 $(298)
Dana Corporation
(Including Dana Credit Corporation on the Equity Basis)
Condensed Balance Sheet (Unaudited)
December 31, 2001
(in millions)
December 31 December 31
Assets 2000 2001
Current assets
Cash and marketable securities $149 $182
Accounts receivable
Trade 1,505 1,371
Other 318 253
Inventories 1,564 1,299
Other current assets 535 518
Total current assets 4,071 3,623
Property, plant and equipment, net 3,069 2,778
Investments and other assets 2,026 2,164
Total assets $9,166 $8,565
Liabilities and Shareholders'
Equity
Accounts payable and other
current liabilities $2,383 $2,325
Notes payable 1,307 617
Total current liabilities 3,690 2,942
Long-term debt 1,574 2,155
Deferred employee benefits
and other noncurrent liabilities 1,155 1,400
Minority interest 119 110
Shareholders' equity 2,628 1,958
Total liabilities and
shareholders' equity $9,166 $8,565
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Cash Flows (Unaudited)
December 31, 2001
(in millions)
Three Months Ended December 31
2000 2001
Net loss $(84) $(298)
Depreciation and amortization 108 115
Asset impairment 27 196
Working capital change 514 538
Other (39) (298)
Net cash from operating activities 526 253
Purchases of property, plant and
equipment (116) (98)
Acquisitions (232) -
Divestitures 9 4
Other 6 17
Net cash flows - investing activities (333) (77)
Net change in short-term debt (86) (87)
Proceeds from long-term debt 9 15
Payments on long-term debt (58) (104)
Dividends paid (45) (1)
Other - (4)
Net cash flows - financing activities (180) (181)
Net change in cash and cash
equivalents 13 (5)
Cash and cash equivalents -
beginning of period 136 187
Cash and cash equivalents - end of
period $149 $182
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Cash Flows (Unaudited)
December 31, 2001
(in millions)
Year Ended December 31
2000 2001
Net income (loss) $334 $(298)
Depreciation and amortization 427 447
Asset impairment 27 206
Gain on divestitures (106) (10)
Working capital change 312 412
Other (144) (282)
Net cash from operating activities 850 475
Purchases of property, plant and
equipment (434) (317)
Acquisitions (511) (21)
Divestitures 571 236
Other 15 9
Net cash flows - investing activities (359) (93)
Net change in short-term debt 424 (599)
Proceeds from long-term debt 9 776
Payments on long-term debt (313) (370)
Dividends paid (187) (140)
Shares repurchased (381) -
Other 5 (16)
Net cash flows - financing activities (443) (349)
Net change in cash and cash
equivalents 48 33
Cash and cash equivalents -
beginning of period 101 149
Cash and cash equivalents - end of
period $149 $182
Dana Corporation
Quarterly Financial Information (Unaudited)
Q4 - 2001
(in millions)
Sales EBIT
00 01 00 01
Automotive Systems Group $1,021 $894 $59 $29
Automotive Aftermarket Group 634 588 (9) (4)
Engine and Fluid Management Group 550 490 25 2
Commercial Vehicle Systems 286 240 (5) 6
Off-Highway Systems Group 158 138 6 (2)
Dana Commercial Credit
Other 39 23 (56) (43)
Total Operations 2,688 2,373 20 (12)
Restructuring and
nonrecurring items (90) (441)
Consolidated $2,688 $2,373 $(70) $(453)
North America $2,014 $1,749 $60 $27
Europe 444 396 5 4
South America 136 139 4 -
Asia Pacific 94 89 1 2
Dana Commercial Credit
Other (50) (45)
Total Operations 2,688 2,373 20 (12)
Restructuring and
nonrecurring items (90) (441)
Consolidated $2,688 $2,373 $(70) $(453)
Dana Corporation
Quarterly Financial Information (Unaudited)
Q4 - 2001
(in millions)
Operating PAT Net Profit
00 01 00 01
Automotive Systems Group $47 $31 $24 $12
Automotive Aftermarket Group (6) (2) (21) (16)
Engine and Fluid Management Group 16 2 5 (8)
Commercial Vehicle Systems (4) 4 (11) (3)
Off-Highway Systems Group 4 (1) - (4)
Dana Commercial Credit 7 13 7 13
Other (62) (61) (2) (8)
Total Operations 2 (14) 2 (14)
Restructuring and
nonrecurring items (86) (284) (86) (284)
Consolidated $(84) $(298) $(84) $(298)
North America $56 $18 $14 $(18)
Europe 3 12 (8) 4
South America (5) (1) (8) (4)
Asia Pacific 1 1 (3) (2)
Dana Commercial Credit 7 13 7 13
Other (60) (57) - (7)
Total Operations 2 (14) 2 (14)
Restructuring and
nonrecurring items (86) (284) (86) (284)
Consolidated $(84) $(298) $(84) $(298)
Dana Corporation
Quarterly Financial Information (Unaudited)
Q4 - 2001
(in millions)
Net Assets
00 01
Automotive Systems Group $2,036 $1,997
Automotive Aftermarket Group 1,903 1,510
Engine and Fluid Management Group 1,735 1,430
Commercial Vehicle Systems 555 407
Off-Highway Systems Group 500 431
Dana Commercial Credit 174 198
Other 77 161
Total Operations 6,980 6,134
Restructuring and
nonrecurring items
Consolidated $6,980 $6,134
North America $4,730 $4,027
Europe 1,542 1,314
South America 451 475
Asia Pacific 169 177
Dana Commercial Credit 174 198
Other (86) (57)
Total Operations 6,980 6,134
Restructuring and
nonrecurring items
Consolidated $6,980 $6,134
See Note 13 to Dana's 2001 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 Greg.Smietanski@Dana.com or Karen.Crawford@Dana.Com
Dana Investor Relations 419-535-4635
Dana Corporation
Quarterly Financial Information
For Twelve Months Ended December 31, 2001
(in millions)
Sales EBIT
00 01 00 01
Automotive Systems Group $4,522 $3,717 $415 $194
Automotive Aftermarket Group 2,768 2,538 116 12
Engine and Fluid Management Group 2,400 2,137 180 77
Commercial Vehicle Systems 1,598 1,118 126 33
Off-Highway Systems Group 786 621 58 22
Dana Commercial Credit
Other 243 140 (219) (191)
Total Operations 12,317 10,271 676 147
Restructuring and
nonrecurring items (25) (466)
Consolidated $12,317 $10,271 $651 $(319)
North America $9,449 $7,684 $804 $280
Europe 1,947 1,704 74 43
South America 563 553 24 13
Asia Pacific 358 330 7 5
Dana Commercial Credit
Other (233) (194)
Total Operations 12,317 10,271 676 147
Restructuring and
nonrecurring items (25) (466)
Consolidated $12,317 $10,271 $651 $(319)
Dana Corporation
Quarterly Financial Information
For Twelve Months Ended December 31, 2001
(in millions)
Operating PAT Net Profit
00 01 00 01
Automotive Systems Group $282 $146 $193 $68
Automotive Aftermarket Group 71 7 6 (54)
Engine and Fluid Management Group 121 50 77 8
Commercial Vehicle Systems 76 20 41 (10)
Off-Highway Systems Group 35 13 21 1
Dana Commercial Credit 35 31 35 31
Other (243) (262) 4 (39)
Total Operations 377 5 377 5
Restructuring and
nonrecurring items (43) (303) (43) (303)
Consolidated $334 $(298) $334 $(298)
North America $525 $167 $346 $10
Europe 44 45 4 8
South America 11 (3) - (14)
Asia Pacific 5 3 (8) (8)
Dana Commercial Credit 35 31 35 31
Other (243) (238) - (22)
Total Operations 377 5 377 5
Restructuring and
nonrecurring items (43) (303) (43) (303)
Consolidated $334 $(298) $334 $(298)
Dana Corporation
Quarterly Financial Information
For Twelve Months Ended December 31, 2001
(in millions)
Net Assets
00 01
Automotive Systems Group $2,036 $1,997
Automotive Aftermarket Group 1,903 1,510
Engine and Fluid Management Group 1,735 1,430
Commercial Vehicle Systems 555 407
Off-Highway Systems Group 500 431
Dana Commercial Credit 174 198
Other 77 161
Total Operations 6,980 6,134
Restructuring and
nonrecurring items
Consolidated $6,980 $6,134
North America $4,730 $4,027
Europe 1,542 1,314
South America 451 475
Asia Pacific 169 177
Dana Commercial Credit 174 198
Other (86) (57)
Total Operations 6,980 6,134
Restructuring and
nonrecurring items
Consolidated $6,980 $6,134
See Note 13 to Dana's 2001 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 Greg.Smietanski@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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