Dana Corporation Announces Year-End Results
Feb 13, 2001
TOLEDO, Ohio, Feb. 13 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today announced consolidated sales of $12.3 billion for the year ended Dec. 31, 2000, down 6 percent from 1999. Operating income for the year was $377 million, or $2.46 per share. After net non-recurring charges of $43 million, reported net income for the year was $334 million, or $2.18 per share on a diluted basis. In 1999, operating income totaled $678 million ($4.07 per share) and reported net income was $513 million ($3.08 per share) after non- recurring charges. (Photo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA ) Sales for the fourth quarter of 2000 were $2.7 billion, down from $3.2 billion for the same period last year. Operating earnings were $2 million, or one cent per share on a diluted basis. The company also reported net non-recurring charges of $86 million (58 cents per share), compared to $144 million (87 cents per share) for the quarter in 1999. The fourth-quarter charges include a portion of the previously announced charge recorded by the company's 49-percent-owned Venezuelan affiliate, provisions for additional downsizing and plant closures, integration expenses, and costs associated with exiting several lines of business. As a result, Dana reported a net loss of $84 million (57 cents per share) in the fourth quarter, compared to break-even results during the same period in 1999. Dana's results during the fourth quarter continued to be 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 several of Dana's largest customers, further deterioration in the U.S. heavy truck market, continued aftermarket softness, and weakness of the Euro. "While these are the same factors that affected us in the third quarter, the severity of production cuts and their impact on Dana were much greater during the fourth quarter," said Dana Chairman and CEO Joe Magliochetti. "Despite the convergence of so many negative factors impacting the markets that we serve, we will not allow ourselves to accept the kind of financial results we saw this quarter. We have taken and will continue to take decisive actions to better position the company for the challenges we are facing in the near term." Recent actions taken by the company include: - Workforce reductions totaling nearly 10,000 people; - Closure of 11 facilities worldwide; - Reduced capital spending except for new product support; - Intensified efforts to reduce working capital expenditures; - Consolidation of operations; and - Aggressive pursuit of supplier cost reductions via e-business initiatives. "We've talked a lot about our transformation strategy to strengthen Dana for the longer term," Mr. Magliochetti said. He noted that this involves: - Focusing on core businesses that meet financial and strategic goals; - Improving capital efficiency; - Enhancing technology and expanding proprietary products; - Rationalizing underperforming assets; and - Outsourcing low-value commodities and sub-assemblies. "While we are intensely focused on the near-term actions needed during these challenging times, we must also seize the opportunity presented by these conditions to quicken the pace of our transformation for the future," he said. Dana will hold a conference call at 9 a.m. (EST) today to discuss its 2000 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. 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 its vehicular customers and suppliers to achieve projected sales and production levels, the cyclical nature of the vehicular industry, international economic conditions, and the success of the company's recent short-term actions, as well as its longer term transformation strategy. Additional factors are discussed 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 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 more than 75,000 people in 36 countries. The company reported sales of $12.3 billion in 2000. Dana's Internet address is http://www.dana.com . (in millions, except per share amounts) Unaudited Three Months Ended December 31 1999 2000 Sales $3,243 $2,688 Net Income (Loss) * (84) Net Income (Loss) Per Common Share - Basic * $(0.57) Diluted * $(0.57) Average Shares Outstanding - For Basic EPS 165 148 For Diluted EPS 166 149 Audited Year Ended December 31 1999 2000 Sales $13,159 $12,317 Net Income 513 334 Net Income Per Common Share - Basic $3.10 $2.20 Diluted $3.08 $2.18 Average Shares Outstanding - For Basic EPS 165 152 For Diluted EPS 166 153 Dana Corporation Statement of Income (Unaudited) December 31, 2000 (in millions, except per share amounts) * Amount is less than $.5 and per share amounts are less than one-half cent. Three Months Ended December 31 1999 2000 Net sales $3,243 $2,688 Revenue from lease financing and other income 75 67 Total 3,318 2,755 Costs and expenses Cost of sales 2,788 2,438 Selling, general and administrative expenses 317 287 Restructuring and integration charges 151 68 Interest expense 72 85 Total 3,328 2,878 Income before income taxes (10) (123) Estimated taxes on income 15 36 Minority interest (3) (1) Equity in earnings of affiliates (2) 4 Net income (loss) $ * $(84) Net income (loss) per common share - Basic * $(0.57) Diluted * $(0.57) Average shares outstanding - For Basic EPS 165 148 For Diluted EPS 166 149 * Amount is less than $.5 and per share amounts are less than one-half cent. Dana Corporation Statement of Income (Audited) December 31, 2000 (in millions, except per share amounts) Year Ended December 31 1999 2000 Net sales $13,159 $12,317 Revenue from lease financing and other income 194 374 Total 13,353 12,691 Costs and expenses Cost of sales 10,964 10,599 Selling, general and administrative expenses 1,192 1,132 Restructuring and integration charges 181 173 Interest expense 279 323 Total 12,616 12,227 Income before income taxes 737 464 Estimated taxes on income (251) (171) Minority interest (13) (13) Equity in earnings of affiliates 40 54 Net income $513 $334 Net income per common share - Basic $3.10 $2.20 Diluted $3.08 $2.18 Average shares outstanding - For Basic EPS 165 152 For Diluted EPS 166 153 Dana Corporation Condensed Balance Sheet (Audited) December 31, 2000 (in millions) December 31 December 31 Assets 1999 2000 Current assets Cash and marketable securities $111 $179 Accounts receivable Trade 1,935 1,548 Other 411 318 Inventories 1,784 1,564 Other current assets 560 714 Total current assets 4,801 4,323 Property, plant and equipment, net 3,450 3,509 Investment in leases 1,014 1,037 Investments and other assets 1,858 2,367 Total assets $11,123 $11,236 Liabilities and Shareholders' Equity Accounts payable and other current liabilities $2,470 $2,386 Notes payable 1,418 1,945 Total current liabilities 3,888 4,331 Long-term debt 2,732 2,649 Deferred employee benefits and other noncurrent liabilities 1,398 1,507 Minority interest 148 121 Shareholders' equity 2,957 2,628 Total liabilities and shareholders' equity $11,123 $11,236 Dana Corporation Condensed Statement of Cash Flows (Unaudited) December 31, 2000 (in millions) Three Months Ended December 31 1999 2000 Net income (loss) $- $(84) Depreciation and amortization 127 133 Loss (gain) on divestitures (5) 4 Working capital change 58 477 Other 126 29 Net cash from operating activities 306 559 Purchases of property, plant and equipment (245) (198) Purchases of assets to be leased (162) 51 Payments received on leases 49 20 Net loans to customers 33 65 Acquisitions (6) (232) Divestitures 36 9 Other (3) (92) Net cash flows - investing activities (298) (377) Net change in short-term debt (146) (44) Proceeds from long-term debt 245 57 Payments on long-term debt (74) (116) Dividends paid (52) (45) Shares repurchased (57) - Other 2 1 Net cash flows - financing activities (82) (147) Net change in cash and cash equivalents (74) 35 Cash and cash equivalents - beginning of period 185 144 Cash and cash equivalents - end of period $111 $179 Dana Corporation Condensed Statement of Cash Flows (Audited) December 31, 2000 (in millions) Year Ended December 31 1999 2000 Net income $513 $334 Depreciation and amortization 519 523 Gain on divestitures (5) (106) Working capital change (464) 254 Other 45 (21) Net cash from operating activities 608 984 Purchases of property, plant and equipment (807) (662) Purchases of assets to be leased (480) (191) Payments received on leases 200 146 Net loans to customers (53) (82) Acquisitions (18) (511) Divestitures 36 571 Other 21 (65) Net cash flows - investing activities (1,101) (794) Net change in short-term debt (341) 577 Proceeds from long-term debt 1,396 368 Payments on long-term debt (376) (504) Dividends paid (206) (187) Shares repurchased (100) (381) Other 1 5 Net cash flows - financing activities 374 (122) Net change in cash and cash equivalents (119) 68 Cash and cash equivalents - beginning of period 230 111 Cash and cash equivalents - end of period $111 $179 Dana Corporation (Including Dana Credit Corporation on an Equity Basis) Statement of Income (Unaudited) December 31, 2000 (in millions) Three Months Ended December 31 1999 2000 Net sales $3,243 $2,688 Other income 40 8 Total 3,283 2,696 Costs and expenses Cost of sales 2,802 2,455 Selling, general and administrative expenses 276 238 Restructuring and integration charges 151 68 Interest expense 51 55 Total 3,280 2,816 Income (loss) before income taxes 3 (120) Estimated taxes on income 1 35 Minority interest (3) (1) Equity in earnings of affiliates (1) 2 Net income (loss) $ * $(84) * Amount is less than $.5 and per share amounts are less than one-half cent. Dana Corporation (Including Dana Credit Corporation on an Equity Basis) Statement of Income (Unaudited) December 31, 2000 (in millions) Year Ended December 31 1999 2000 Net sales $13,159 $12,317 Other income 58 190 Total 13,217 12,507 Costs and expenses Cost of sales 11,016 10,662 Selling, general and administrative expenses 1,074 1,007 Restructuring and integration charges 181 173 Interest expense 208 218 Total 12,479 12,060 Income before income taxes 738 447 Estimated taxes on income (273) (168) Minority interest (13) (13) Equity in earnings of affiliates 61 68 Net income $513 $334 Dana Corporation (Including Dana Credit Corporation on an Equity Basis) Condensed Balance Sheet (Unaudited) December 31, 2000 (in millions) December 31 December 31 Assets 1999 2000 Current assets Cash and marketable securities $101 $149 Accounts receivable Trade 1,935 1,505 Other 399 318 Inventories 1,784 1,564 Other current assets 418 535 Total current assets 4,637 4,071 Property, plant and equipment, net 3,064 3,069 Investments and other assets 1,801 2,026 Total assets $9,502 $9,166 Liabilities and Shareholders' Equity Accounts payable and other current liabilities $2,423 $2,383 Notes payable 897 1,307 Total current liabilities 3,320 3,690 Long-term debt 1,862 1,574 Deferred employee benefits and other noncurrent liabilities 1,216 1,155 Minority interest 147 119 Shareholders' equity 2,957 2,628 Total liabilities and shareholders' equity $9,502 $9,166 Dana Corporation (Including Dana Credit Corporation on an Equity Basis) Condensed Statement of Cash Flows (Unaudited) December 31, 2000 (in millions) Three Months Ended December 31 1999 2000 Net income (loss) $- $(84) Depreciation and amortization 106 108 Loss (gain) on divestitures (5) 4 Working capital change 56 486 Other 76 12 Net cash from operating activities 233 526 Purchases of property, plant and equipment (163) (116) Acquisitions (7) (232) Divestitures 36 9 Other 25 6 Net cash flows - investing activities (109) (333) Net change in short-term debt (82) (86) Proceeds from long-term debt 15 9 Payments on long-term debt (31) (58) Dividends paid (51) (45) Shares repurchased (57) - Net cash flows - financing activities (206) (180) Net change in cash and cash equivalents (82) 13 Cash and cash equivalents - beginning of period 183 136 Cash and cash equivalents - end of period $101 $149 Dana Corporation (Including Dana Credit Corporation on an Equity Basis) Condensed Statement of Cash Flows (Unaudited) December 31, 2000 (in millions) Year Ended December 31 1999 2000 Net income $513 $334 Depreciation and amortization 429 427 Gain on divestitures (5) (106) Working capital change (447) 284 Other (26) (89) Net cash from operating activities 464 850 Purchases of property, plant and equipment (547) (434) Acquisitions (18) (511) Divestitures 36 571 Other 3 15 Net cash flows - investing activities (526) (359) Net change in short-term debt (555) 424 Proceeds from long-term debt 1,017 9 Payments on long-term debt (220) (313) Dividends paid (206) (187) Shares repurchased (100) (381) Other - 5 Net cash flows - financing activities (64) (443) Net change in cash and cash equivalents (126) 48 Cash and cash equivalents - beginning of period 227 101 Cash and cash equivalents - end of period $101 $149 Dana Corporation Quarterly Financial Information Q4 - 2000 (Unaudited) (in millions) Sales EBIT Operating PAT 99 00 99 00 99 00 Automotive Systems Group $1,132 $1,042 $131 $60 $81 $47 Automotive Aftermarket Group 713 654 63 (8) 38 (5) Heavy Truck Group 479 287 52 (5) 32 (4) Engine Systems Group 321 285 18 8 12 6 Fluid Systems Group 313 269 31 20 19 12 Off-Highway Systems Group 193 137 9 5 6 3 Dana Commercial Credit - - - - 6 6 Other 92 14 (56) (60) (50) (63) Total Operations 3,243 2,688 248 20 144 2 Restructuring and nonrecurring items - - (198) (90) (144) (86) Consolidated $3,243 $2,688 $50 $(70) $(0) $(84) North America $2,547 $2,014 $282 $60 $171 $55 Europe 497 444 17 5 10 3 South America 132 136 5 4 (1) (5) Asia Pacific 67 94 3 1 1 1 Dana Commercial Credit - - - - 6 7 Other - - (59) (50) (43) (59) Total Operations 3,243 2,688 248 20 144 2 Restructuring and nonrecurring items - - (198) (90) (144) (86) Consolidated $3,243 $2,688 $50 $(70) $- $(84) See Note 13 to Dana's 1999 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 02/13/2001 Dana Corporation Quarterly Financial Information Q4 - 2000 (Unaudited) (in millions) Net Profit Net Assets 99 00 99 00 Automotive Systems Group $62 $25 $1,761 $2,097 Automotive Aftermarket Group 21 (22) 1,998 1,940 Heavy Truck Group 22 (11) 689 557 Engine Systems Group 7 - 1,136 1,082 Fluid Systems Group 14 7 757 673 Off-Highway Systems Group 2 - 546 438 Dana Commercial Credit 6 7 145 174 Other 10 (4) 208 19 Total Operations 144 2 7,240 6,980 Restructuring and nonrecurring items (144) (86) - - Consolidated $- $(84) $7,240 $6,980 North America $128 $15 $5,222 $4,730 Europe - (7) 1,267 1,542 South America (3) (8) 581 451 Asia Pacific (1) (3) 143 169 Dana Commercial Credit 6 6 145 174 Other 14 (1) (118) (86) Total Operations 144 2 7,240 6,980 Restructuring and nonrecurring items (144) (86) - - Consolidated $- $(84) $7,240 $6,980 See Note 13 to Dana's 1999 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 02/13/2001 Dana Corporation Quarterly Financial Information For Twelve Months Ending December 31, 2000 (Unaudited) (in millions) Operating Sales EBIT PAT 99 00 99 00 99 00 Automotive Systems Group $4,461 $4,634 $538 $423 $343 $287 Automotive Aftermarket Group 3,039 2,850 307 125 188 77 Heavy Truck Group 1,904 1,598 208 126 127 76 Engine Systems Group 1,318 1,293 103 86 69 63 Fluid Systems Group 1,238 1,163 133 110 82 66 Off-Highway Systems Group 812 674 56 49 34 30 Dana Commercial Credit - - - - 34 35 Other 387 105 (194) (243) (199) (257) Total Operations 13,159 12,317 1,151 676 678 377 Restructuring and nonrecurring items - - (229) (25) (165) (43) Consolidated $13,159 $12,317 $922 $651 $513 $334 North America $10,308 $9,449 $1,235 $804 $771 $525 Europe 2,051 1,947 99 74 57 44 South America 549 563 16 24 13 11 Asia Pacific 251 358 - 7 (1) 5 Dana Commercial Credit - - - - 34 35 Other - - (199) (233) (196) (243) Total Operations 13,159 12,317 1,151 676 678 377 Restructuring and nonrecurring items - - (229) (25) (165) (43) Consolidated $13,159 $12,317 $922 $651 $513 $334 See Note 13 to Dana's 1999 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 02/13/2001 Dana Corporation Quarterly Financial Information For Twelve Months Ending December 31, 2000 (Unaudited) (in millions) Net Profit Net Assets 99 00 99 00 Automotive Systems Group $271 $196 $1,761 $2,097 Automotive Aftermarket Group 127 2 1,998 1,940 Heavy Truck Group 91 41 689 557 Engine Systems Group 49 40 1,136 1,082 Fluid Systems Group 63 45 757 673 Off-Highway Systems Group 22 18 546 438 Dana Commercial Credit 34 35 145 174 Other 21 - 208 19 Total Operations 678 377 7,240 6,980 Restructuring and nonrecurring items (165) (43) - - Consolidated $513 $334 $7,240 $6,980 North America $612 $346 $5,222 $4,730 Europe 20 4 1,267 1,542 South America 3 - 581 451 Asia Pacific (10) (8) 143 169 Dana Commercial Credit 34 35 145 174 Other 19 - (118) (86) Total Operations 678 377 7,240 6,980 Restructuring and nonrecurring items (165) (43) - - Consolidated $513 $334 $7,240 $6,980 See Note 13 to Dana's 1999 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 02/13/2001
SOURCE Dana Corporation
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