Dana Corporation Announces First-Quarter Results
Apr 18, 2001
TOLEDO, Ohio, April 18 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today announced that its sales for the first quarter of 2001 were $2.7 billion, down from $3.5 billion for the same period last year. Operating earnings per share totaled one cent on a diluted basis, exceeding consensus estimates. (Photo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA ) The company also reported net non-recurring charges of $28 million (19 cents per share). These charges included a one-time loss associated with the sale of the Mr. Gasket aftermarket operations, as well as charges related to facility closures and permanent workforce reductions. The resulting net loss reported for the quarter was $27 million (18 cents per share). This compares to net income of $245 million in the first quarter of last year, which included a net non-recurring gain of $85 million. "As we expected, the first quarter was very much like the fourth quarter of 2000. We were impacted by a number of broad issues that affected the industry as a whole. These included irregular and reduced production schedules for light trucks and sport-utility vehicles manufactured by some of our largest customers and continued weakness in the aftermarket and the North American heavy-truck market," said Dana Chairman and CEO Joe Magliochetti. "With the lower light-truck production levels affecting certain vehicles with significant Dana content, the profitability of our Automotive Systems Group declined from the fourth quarter. This was largely offset by the effects of our on-going cost-reduction initiatives, as well as improved performance in other business units. "We are particularly proud that our Commercial Vehicle Systems group, formerly known as the Heavy Truck Group, was profitable in a still depressed heavy-truck market. During the quarter, this group completed a substantial streamlining of its operations. This is consistent with our objective to right-size all of our businesses to correspond with lower production projections," Mr. Magliochetti said. "Looking ahead to the second quarter, we anticipate that our original equipment markets will continue to be erratic as the OEMs work to balance their production and inventories with demand. We also do not see any signs of near-term recovery in the aftermarket. Consequently, it is imperative that we continue to focus on appropriately scaling all of our operations and better leveraging our assets," he added. Dana Chief Financial Officer Bob Richter said, "In addition to these operational measures, we continued our focus on managing for cash. We also significantly strengthened our liquidity. We established a five-year, $400 million accounts receivable securitization program to provide an additional, cost-effective source of financing. We also increased the size of our revolving credit facilities by $250 million to a total of $1.25 billion. These actions greatly enhance our financial flexibility going forward." Dana will hold a conference call at 1 p.m. (EDT) today to discuss its quarterly 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 5 p.m. (EDT) April 18. To access this recording, please dial (800) 537-8823. Dana Corporation is one of the world's largest suppliers of components, modules and complete systems to global vehicle manufacturers and their related aftermarkets. Founded in 1904 and based in Toledo, Ohio, the company operates some 300 major facilities in 35 countries and employs more than 75,000 people. The company reported sales of $12.3 billion in 2000. Dana's Internet address is http://www.dana.com . Certain statements contained herein 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 future 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 ability of various vehicular customers and suppliers to achieve projected sales and production levels, the cyclical nature of the vehicular industry, and international economic conditions. Additional factors are detailed in Dana's public filings with the Securities and Exchange Commission. Dana does not undertake to update any forward-looking statements contained herein. (in millions, except per share amounts) Unaudited Three Months Ended March 31 2000 2001 Sales $3,468 $2,731 Net Income(Loss) 245 (27) Net Income(Loss) Per Common Share- Shares Income Outstanding EPS Basic $1.55 $(0.18) (26,956,390.49) 147,915,156 $(0.182242) Diluted $1.54 $(0.18) (26,956,390.49) 148,757,269 $(0.181211) From Dana Corp. Common Stock Report Average Shares Outstanding - For Basic EPS 158 148 For Diluted EPS 159 149 Dana Corporation Statement of Income (Unaudited) March 31, 2001 (in millions, except per share amounts) Three Months Ended March 31 2000 2001 Net sales $3,468 $2,731 Revenue from lease financing and other income 217 22 Total 3,685 2,753 Costs and expenses Cost of sales 2,902 2,443 Selling, general and administrative expenses 299 261 Restructuring and integration charges 19 22 Interest expense 79 85 Total 3,299 2,811 Income (loss) before income taxes 386 (58) Estimated taxes on income (148) 24 Minority interest (4) (2) Equity in earnings of affiliates 11 9 Net income (loss) $245 $(27) Net income (loss) per common share - Basic $1.55 $(0.18) Diluted $1.54 $(0.18) Average shares outstanding - For Basic EPS 158 148 For Diluted EPS 159 149 Dana Corporation Condensed Balance Sheet (Unaudited) March 31, 2001 (in millions) December 31 March 31 Assets 2000 2001 Current assets Cash and marketable securities $179 $150 Accounts receivable Trade 1,548 1,744 Other 318 376 Inventories 1,564 1,445 Other current assets 714 568 Total current assets 4,323 4,283 Property, plant and equipment, net 3,509 3,388 Investment in leases 1,037 1,063 Investments and other assets 2,367 2,338 Total assets $11,236 $11,072 Liabilities and Shareholders' Equity Accounts payable and other current liabilities $2,386 $2,406 Notes payable 1,945 2,111 Total current liabilities 4,331 4,517 Long-term debt 2,649 2,422 Deferred employee benefits and other noncurrent liabilities 1,507 1,573 Minority interest 121 121 Shareholders' equity 2,628 2,439 Total liabilities and shareholders' equity $11,236 $11,072 Dana Corporation Condensed Statement of Cash Flows (Unaudited) March 31, 2001 (in millions) Three Months Ended March 31 2000 2001 Net income (loss) $245 $(27) Depreciation and amortization 132 136 Loss (gain) on divestitures (97) 12 Working capital change (138) (65) Other (37) 56 Net cash from operating activities 105 112 Purchases of property, plant and equipment (166) (124) Purchases of assets to be leased (12) (30) Payments received on leases 14 10 Net loans to customers (6) 60 Acquisitions (205) - Divestitures 524 15 Other 31 20 Net cash flows - investing activities 180 (49) Net change in short-term debt 237 96 Proceeds from long-term debt - 43 Payments on long-term debt (233) (186) Dividends paid (48) (46) Shares repurchased (250) - Other 2 1 Net cash flows - financing activities (292) (92) Net change in cash and cash equivalents (7) (29) Cash and cash equivalents - beginning of period 111 179 Cash and cash equivalents - end of period $104 $150 Dana Corporation (Including Dana Credit Corporation on an Equity Basis) Statement of Income (Unaudited) March 31, 2001 (in millions) Three Months Ended March 31 2000 2001 Net sales $3,468 $2,731 Other income (expense) 174 (13) Total 3,642 2,718 Costs and expenses Cost of sales 2,917 2,461 Selling, general and administrative expenses 275 237 Restructuring and integration charges 19 22 Interest expense 55 55 Total 3,266 2,775 Income (loss) before income taxes 376 (57) Estimated taxes on income (146) 23 Minority interest (4) (2) Equity in earnings of affiliates 19 9 Net income (loss) $245 $(27) Dana Corporation (Including Dana Credit Corporation on an Equity Basis) Condensed Balance Sheet (Unaudited) March 31, 2001 (in millions) December 31 March 31 Assets 2000 2001 Current assets Cash and marketable securities $149 $136 Accounts receivable Trade 1,505 1,745 Other 318 282 Inventories 1,564 1,445 Other current assets 535 517 Total current assets 4,071 4,125 Property, plant and equipment, net 3,069 2,954 Investments and other assets 2,026 1,979 Total assets $9,166 $9,058 Liabilities and Shareholders' Equity Accounts payable and other current liabilities $2,383 $2,349 Notes payable 1,307 1,534 Total current liabilities 3,690 3,883 Long-term debt 1,574 1,369 Deferred employee benefits and other noncurrent liabilities 1,155 1,248 Minority interest 119 119 Shareholders' equity 2,628 2,439 Total liabilities and shareholders' equity $9,166 $9,058 Dana Corporation (Including Dana Credit Corporation on an Equity Basis) Condensed Statement of Cash Flows (Unaudited) March 31, 2001 (in millions) Three Months Ended March 31 2000 2001 Net income (loss) $245 $(27) Depreciation and amortization 110 111 Loss (gain) on divestitures (97) 12 Working capital change (118) (74) Other (59) 30 Net cash from operating activities 81 52 Purchases of property, plant and equipment (116) (74) Acquisitions (205) - Divestitures 524 15 Other 30 7 Net cash flows - investing activities 233 (52) Net change in short-term debt 162 183 Proceeds from long-term debt - 10 Payments on long-term debt (181) (162) Dividends paid (48) (46) Shares repurchased (250) - Other 2 2 Net cash flows - financing activities (315) (13) Net change in cash and cash equivalents (1) (13) Cash and cash equivalents - beginning of period 101 149 Cash and cash equivalents - end of period $100 $136 Dana Corporation Quarterly Financial Information Q1 - 2001 (Unaudited) (in millions) Sales EBIT Operating PAT 00 01 00 01 00 01 Automotive Systems Group $1,230 $972 $133 $55 $85 $39 Automotive Aftermarket Group 733 637 59 (14) 36 (9) Commercial Vehicle Systems 514 319 57 9 35 5 Engine Systems Group 381 328 30 13 19 9 Fluid Systems Group 313 282 35 23 21 14 Off-Highway Systems Group 230 177 21 12 13 7 Dana Commercial Credit 12 7 Other 67 16 (54) (54) (61) (71) Total Operations 3,468 2,731 281 44 160 1 Restructuring and nonrecurring items - - 146 (46) 85 (28) Consolidated $3,468 $2,731 $427 $(2) $245 $(27) North America $2,717 $2,034 $306 $76 $188 $43 Europe 543 489 31 21 19 19 South America 128 127 2 2 2 (4) Asia Pacific 80 81 1 1 1 1 Dana Commercial Credit - - - - 12 7 Other - - (59) (56) (62) (65) Total Operations 3,468 2,731 281 44 160 1 Restructuring and nonrecurring items - - 146 (46) 85 (28) Consolidated $3,468 $2,731 $427 $(2) $245 $(27) See Note 13 to Dana's 2000 Annual Report for further information (http://WWW.Dana.Com) Dana Corporation Quarterly Financial Information Q1 - 2001 (Unaudited) (in millions) Net Profit Net Assets 00 01 00 01 Automotive Systems Group $64 $16 $1,913 $2,001 Automotive Aftermarket Group 21 (26) 2,022 1,741 Commercial Vehicle Systems 25 (3) 658 507 Engine Systems Group 13 2 1,185 1,088 Fluid Systems Group 16 8 744 657 Off-Highway Systems Group 9 4 537 479 Dana Commercial Credit 12 7 156 173 Other - (7) 37 41 Total Operations 160 1 7,252 6,687 Restructuring and nonrecurring items 85 (28) - - Consolidated $245 $(27) $7,252 $6,687 North America $141 $(3) $5,111 $4,506 Europe 8 7 1,419 1,485 South America - (7) 533 413 Asia Pacific (2) (2) 131 162 Dana Commercial Credit 12 7 156 173 Other 1 (1) (98) (52) Total Operations 160 1 7,252 6,687 Restructuring and nonrecurring items 85 (28) - - Consolidated $245 $(27) $7,252 $6,687 See Note 13 to Dana's 2000 Annual Report for further information (http://WWW.Dana.Com)
SOURCE Dana Corporation
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