Dana Corporation Reports Third-Quarter 2005 Results
PRNewswire-FirstCall
TOLEDO, Ohio
(NYSE:DCN)
Jan 17, 2006
TOLEDO, Ohio, Jan. 17 /PRNewswire-FirstCall/ -- Dana Corporation (NYSE: DCN) today reported financial results for both the quarter and nine months ended Sept. 30, 2005, and announced that it will file its Form 10-Q for the third quarter of 2005 later today. The filing and delivery of this report will eliminate any defaults related to late filing of the third-quarter financial statements under the company's financing agreements.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
Sales for the third quarter of 2005 were $2,396 million, compared to $2,114 million during the same period in 2004. The company recorded a net loss of $1,272 million, or $8.50 per share, for the quarter, compared to net income of $42 million, or 28 cents per share in the third quarter of 2004. Results for the quarter and nine months ended Sept. 30, 2004 have been restated, as previously disclosed in the 2004 Form 10-K/A filed on Dec. 30, 2005.
The third-quarter 2005 net loss included two significant unusual items that were previously announced. These two non-cash items account for 94 percent of the reported net loss:
-- The company provided a valuation allowance, as announced on Oct. 10,
2005, against its net U.S. deferred tax assets during the third
quarter. The one-time impact of providing this allowance was a
reduction in net income of $918 million in the period, which represents
the restated net U.S. deferred tax assets at the beginning of the third
quarter and also includes $13 million for a similar allowance against
the company's U.K. tax assets. The valuation allowance was recorded
because, based on its current outlook, Dana believes it is no longer
more likely than not that the company will be able to utilize these tax
assets. This action does not affect the company's ability to use these
tax assets later if justified by future profitability in the U.S. and
U.K.
-- Additionally, on Oct. 20, 2005, the company announced its intention to
divest its non-core engine hard parts, fluid products, and pump
products businesses. An impairment charge to reduce the book value of
certain assets of these businesses of $275 million after tax was
recorded in the third quarter. Additional charges will be recorded in
the fourth quarter of 2005 in connection with the classification of
these businesses as discontinued operations.
In the third quarter of 2005, the company also recorded an aggregate charge of approximately $16 million, or 11 cents per share, related to the sale of its domestic fuel rail business and the dissolution of its engine bearings joint venture with The Daido Metal Company.
The balance of the third-quarter 2005 loss - totaling $63 million - was from operations. The comparable number for the third quarter of 2004 was $39 million after adjusting for unusual charges and results of discontinued operations.
The comparison of quarterly operating income year-on-year was impacted significantly by taxes. The third-quarter 2004 results included a significant tax benefit. By contrast, third-quarter 2005 results reflect tax expense on income of foreign operations, despite the fact that there was a consolidated loss before tax. This is due to the fact that the company no longer provides deferred tax benefits against U.S. losses.
Interest expense was $11 million lower in the third quarter of 2005 than in the comparable period in 2004 due to lower average debt levels.
As disclosed in the company's segment information, on an EBIT basis the Heavy Vehicle Technologies and Systems Group earned $16 million in the third quarter of 2005, compared to $41 million during the same period in 2004. The principal reasons for this decline were substantially higher steel costs and production inefficiencies within the Commercial Vehicle business. Additionally, the Off-Highway business experienced higher costs associated with the ongoing realignment of its manufacturing facilities.
On an EBIT basis, the Automotive Systems Group's earnings declined to $41 million in the third quarter of 2005 from $65 million during the same period last year. In addition to the adverse effects of higher material costs and continuing pricing pressures, results in this business unit were also negatively impacted by start-up losses at a new manufacturing facility in its actuation systems joint venture.
Nine-Month Results
Sales for the nine months ended Sept. 30, 2005 were $7,505 million which compares to $6,755 million for the same period in 2004. For the first nine months of 2005, the company reported a net loss of $1,226 million compared to net income of $200 million for the same period in 2004. The primary reasons for the difference in the year-on-year change in net income were the unusual items that occurred in the third quarter.
On an EBIT basis the Heavy Vehicle Technologies and Systems Group earned $81 million in the first nine months of 2005, compared to $125 million during the same period in 2004. The Automotive Systems Group earnings declined to $179 million in the first nine months of 2005 from $270 million during the same period last year. Material costs were chiefly responsible for the lower income in both business units.
"Obviously, our results are far from acceptable, particularly the operating loss," said Dana Chairman and CEO Mike Burns. "Many of the challenges we are facing on the automotive side, including higher material costs and lower production levels, are industry-wide issues. However, the reduced income in our Heavy Vehicle unit reflects not only material cost increases, but also internal operating inefficiencies, which we are moving aggressively to address.
"Specifically, within our Commercial Vehicle business, we have announced a series of actions to reposition our operations and balance capacity to enhance our efficiency," Mr. Burns added. "I am also confident in the capabilities of our newly appointed Heavy Vehicle Products President, Nick Stanage. Nick's outstanding combination of leadership ability and technical knowledge promises to serve this business and our customers well as we move forward."
Mr. Burns said Dana is continuing to improve focus and increase performance in all of its businesses, as evidenced by recent announcements regarding strategic divestitures, consolidation of facilities, and workforce reductions. "At the same time, we can't just work the cost side," he said. "We must also continue to grow our revenue base. And to this end, we continue to add to our backlog of profitable new business."
Conference Call Scheduled Today at 10 a.m.
Dana will discuss its third-quarter 2005 and nine-month results, as well as matters related to the company's restated financial statements, during a conference call and supporting webcast at 10 a.m. (ET) today. The call may be accessed via Dana's web site (http://www.dana.com/), or by dialing (877) 340- DANA (3262) in the U.S. and Canada, or (706) 758-9313 elsewhere. Callers must reference Conference I.D. #4076436. An audio recording of this conference call will be available after 2 p.m. (ET) today. To access this recording, please dial (800) 642-1687 in the U.S. and Canada, or (706) 645-9291 elsewhere, and enter the Conference I.D. number referenced above. A webcast replay of the call will also be available after 4 p.m. today and will be accessible via the Dana web site. Individuals may also print the supporting slide presentation available in PDF format by visiting the investor page at: http://www.dana.com/.
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 billion in 2004. Dana's Internet address is: http://www.dana.com/.
Use of Non-GAAP Financial Information
This release contains information about Dana's financial results which is not presented in accordance with accounting principles generally accepted in the United States (GAAP). Specifically, the release contains information about Dana's financial results presented on an EBIT basis and includes tables that show the company's results with Dana Credit Corporation (DCC) accounted for on an equity basis, rather than on a consolidated basis. Management believes that the presentation of the EBIT financial measures provides useful information to investors due to the impact of the unusual tax items on the company's three- and nine-month results in 2005. Management also believes that the presentation of results with DCC on an equity basis is useful because that is how management evaluates Dana's operating segments. This is done because DCC is not homogenous with Dana's manufacturing operations, its financing activities do not support the sales of the other operating segments, and its financial and performance measures are inconsistent with those of the other operating segments. Moreover, the financial covenants in Dana's bank facility are measured with DCC accounted for on an equity basis. For the non- GAAP measures presented in this release, there is supplementary information at the end showing the most directly comparable financial measures calculated and presented in accordance with GAAP and a quantitative reconciliation of the differences between the non-GAAP financial measures and the most directly comparable GAAP financial measures.
Forward-Looking Statements
Statements in this release which are not entirely historical 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. However, forward-looking statements are inherently subject to risks and uncertainties and Dana's actual results could differ materially from those that are anticipated or projected due to a number of factors. These factors include the cyclical nature of the vehicular markets we serve, particularly the heavy-duty commercial vehicle market; changes in the competitive environment in our markets due, in part, to outsourcing and consolidation by our customers; changes in national and international economic conditions that affect our markets, such as increased fuel prices and legislation regulating vehicle emissions; potential adverse effects on our operations and business from terrorism or hostilities; the strength of other currencies in the overseas countries in which we do business relative to the U.S. dollar; increases in our commodity costs (including steel, other raw materials, and energy) that we cannot recoup in our product pricing; our success in implementing our cost-savings, lean manufacturing and VA/VE (value added/value engineering) programs; changes in business relationships with our major customers and in the timing, size and continuation of their programs; the ability of our customers to maintain their market positions and achieve their projected sales and production levels; the ability of our suppliers to maintain their projected production levels and furnish critical components for our products, as well as other necessary goods and services; competitive pressures on our sales from other vehicle component suppliers; price reduction pressures from our customers; our ability to negotiate new or modified financing agreements prior to the expiration of the waivers under our existing agreements; our ability to complete our previously announced strategic actions as contemplated (including the divestiture of our non-core engine hard parts, fluid products and pump products businesses; the operational restructuring in our Automotive Systems Group and our Commercial Vehicle business; the dissolution of our Mexican joint venture, Spicer S.A. de C.V.; and the finalization of our Chinese joint venture, Dongfeng Axle Co., Ltd.); and other factors set out in our public filings with the Securities and Exchange Commission. Forward-looking statements in this release speak only as of the date of the release. Dana does not undertake to update such forward- looking statements.
Dana Corporation
Financial Summary (Unaudited)
(in millions, except per share amounts)
Three Months Ended Nine Months Ended
Sept 30 Sept 30
2005 2004 2005 2004
Restated Restated
Sales $2,396 $2,114 $7,505 $6,755
Income (loss) from continuing
operations $(1,274) $54 $(1,232) $165
Income (loss) from discontinued
operations - (12) - 35
Effect of change in accounting 2 - 6 -
Net income (loss) $(1,272) $42 $(1,226) $200
Income (loss) from continuing
operations $(1,274) $54 $(1,232) $165
Impairment and restructuring
charges 275 5 275 5
Losses on divestitures 16 - 16 -
Valuation allowance against
deferred tax assets 920 920
Gain associated with the sale
of assets to a newly formed
joint venture - (13) - (13)
Net gains associated with DCC
asset sales - (7) (4) (25)
Charge related to Ohio tax
legislation - - 5 -
Income (loss) from continuing
operations, excluding unusual
items $(63) $39 $(20) $132
Income (loss) from discontinued
operations $ - $(12) $ - $ 35
Adjustment of deferred tax
allowance related to
aftermarket sale - 20 - -
Costs related to sale of
aftermarket businesses - 10 - 13
Income from discontinued
operations,
excluding unusual items $ - $ 18 $ - $ 48
Diluted earnings (loss) per share:
Income (loss) from continuing
operations $(8.51) $0.36 $(8.24) $1.10
Effect of change in accounting 0.01 - 0.04 -
Income(loss) from discontinued
operations - (0.08) - 0.23
Net income $(8.50) $0.28 $(8.20) $1.33
Income (loss) from continuing
operations, excluding
unusual items $(0.42) $0.26 $(0.13) $0.87
Income (loss) from discontinued
operations, excluding unusual
items - 0.12 - 0.32
Net income, excluding unusual
items (0.42) 0.38 (0.13) 1.19
Effect of change in accounting 0.01 - 0.04 -
Income (loss) from Unusual
items (8.09) (0.10) (8.11) 0.14
Net income (loss) $(8.50) $0.28 $(8.20) $1.33
Dana Corporation
Reconciliation of Earnings before interest
and taxes (EBIT) for the Segments to
Income before income taxes (Unaudited)
(in millions)
Three Months Nine Months
Ended Sept 30, Ended Sept 30,
2005 2004 2005 2004
Restated Restated
Segment income (loss)
ASG $41 $65 $179 $270
HVTSG 16 41 81 125
57 106 260 395
Other (75) (65) (201) (174)
Segment income (loss) from
continuing operations $(18) $41 $59 $221
Unusual items excluded from
performance measures
Total operations (306) (6) (297) (15)
Discontinued operations 16 20
Interest expense, excluding DCC (34) (42) (102) (120)
Interest income, excluding DCC 8 1 24 7
DCC pre-tax loss (1) (42) (12) (49)
Income (loss) before income taxes $(351) $(32) $(328) $64
Dana Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Three Months Ended Nine Months Ended
Sept 30 Sept 30
2005 2004 2005 2004
Restated Restated
Net sales $2,396 $2,114 $7,505 $6,755
Revenue from lease
financing and other income 11 (8) 67 27
2,407 2,106 7,572 6,782
Costs and expenses
Cost of sales 2,290 1,964 7,072 6,186
Selling, general and
administrative expenses 136 121 413 375
Impairment charges 290 290 -
Interest expense 42 53 125 157
2,758 2,138 7,900 6,718
Income (loss) before income
taxes (351) (32) (328) 64
Income tax benefit
(expense) (929) 83 (925) 85
Minority interest 1 (3) (5) (9)
Equity in earnings
of affiliates 5 6 26 25
Income (loss) from
continuing operations (1,274) 54 (1,232) 165
Effect of change in
accounting 2 - 6 -
Income (loss) from
discontinued operations (12) - 35
Net income (loss) $(1,272) $42 $(1,226) $200
Basic earnings per share
Income (loss) from
continuing operations $(8.51) $0.36 $(8.24) $1.11
Effect of change in
accounting 0.01 - 0.04 -
Income (loss) from
discontinued operations - (0.08) - 0.23
Net income (loss) $(8.50) $0.28 $(8.20) $1.34
Diluted earnings per share
Income (loss) from
continuing operations $(8.51) $0.36 $(8.24) $1.10
Effect of change in
accounting 0.01 - 0.04 -
Income (loss) from
discontinued operations - (0.08) - 0.23
Net income (loss) $(8.50) $0.28 $(8.20) $1.33
Average shares outstanding -
For Basic EPS 150 149 150 149
For Diluted EPS 151 151 151 151
Dana Corporation
Condensed Balance Sheet (Unaudited)
(in millions)
September 30 December 31
2005 2004
Restated
Assets
Current assets
Cash and cash equivalents $ 730 $ 634
Accounts receivable
Trade 1,454 1,254
Other 274 437
Inventories 878 898
Other current assets 146 200
Total current assets 3,482 3,423
Investment in leases 256 281
Investments and other assets 2,397 3,144
Property, plant and
equipment, net 1,742 2,171
Total assets $7,877 $9,019
Liabilities and Shareholders'
Equity
Current liabilities
Notes payable $2,304 $ 155
Accounts payable 1,322 1,330
Other current liabilities 1,082 1,188
Total current
liabilities 4,708 2,673
Long-term debt 280 2,054
Deferred employee benefits
and other noncurrent
liabilities 1,747 1,759
Minority interest 85 122
Shareholders' equity 1,057 2,411
Total liabilities and
shareholders' equity $7,877 $9,019
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Three Months Nine Months
Ended Sept. 30 Ended Sept. 30
2005 2004 2005 2004
Restated Restated
Net income (loss) $(1,272) $42 $(1,226) $200
Depreciation and amortization 64 90 227 273
Impairments 290 24 290 24
(Gain) loss on asset sales 19 (32) 14 (57)
Effect of change in accounting (2) (6)
Working capital decrease
(increase) 22 (249) (193) (378)
Deferred taxes 763 (31) 728 (72)
Other (35) 46 (134) (47)
Net cash flows -
operating activities (151) (110) (300) (57)
Purchases of property, plant
and equipment (69) (66) (193) (214)
Payments received from leases
and partnerships 32 2 70 10
Proceeds from divestitures and
asset sales 39 166 176 318
Other 70 10 27 (22)
Net cash flows -
investing activities 40 112 80 92
Net change in short-term debt 181 28 406 181
Payments on long-term debt - (101) (45) (405)
Proceeds from long-term debt 21 - 21 5
Dividends paid (18) (17) (54) (53)
Other (9) 3 (12) 16
Net cash flows -
financing activities 175 (87) 316 (256)
Net change in cash and cash
equivalents 64 (85) 96 (221)
Net change in cash -
discontinued operations - - - 2
Cash and cash equivalents -
beginning of period 666 597 634 731
Cash and cash equivalents - end
of period $730 $512 $730 $512
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Three Months Ended Nine Months Ended
Sept. 30 Sept. 30
2005 2004 2005 2004
Restated Restated
Net sales $2,396 $2,114 $7,505 $6,755
Other income (expense) (1) 23 41 37
2,395 2,137 7,546 6,792
Costs and expenses
Cost of sales 2,293 1,970 7,083 6,205
Selling, general and
administrative expenses 128 115 387 353
Impairment charges 290 290
Interest expense 34 42 102 120
2,745 2,127 7,862 6,678
Income (loss) before income
taxes (350) 10 (316) 114
Income tax benefit (expense) (932) 29 (946) (7)
Minority interest 1 (3) (5) (9)
Equity in earnings
of affiliates 7 18 35 67
Income (loss) from continuing
operations (1,274) 54 (1,232) 165
Change in accounting 2 6
Income (loss) from discontinued
operations (12) 35
Net income (loss) $(1,272) $42 $(1,226) $200
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Balance Sheet (Unaudited)
(in millions)
September 30 December 31
2005 2004
Assets Restated
Current assets
Cash and cash equivalents $ 707 $ 619
Accounts receivable
Trade 1,454 1,253
Other 277 438
Inventories 878 898
Other current assets 123 170
Total current assets 3,439 3,378
Investment in leases
Investments and other
assets 2,650 3,338
Property, plant and
equipment, net 1,690 2,033
------ ------
Total assets $7,779 $8,749
Liabilities and Shareholders' Equity
Current liabilities
Notes payable $2,157 $289
Accounts payable 1,322 1,330
Other current liabilities 1,193 1,236
Total current liabilities 4,672 2,855
Long-term debt 225 1,611
Deferred employee benefits
and other noncurrent
liabilities 1,742 1,752
Minority interest 83 120
Shareholders' equity 1,057 2,411
Total liabilities and
shareholders' equity $7,779 $8,749
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Three Months Nine Months
Ended Sept. 30 Ended Sept. 30
2005 2004 2005 2004
Restated Restated
Net income (loss) $(1,272) $42 $(1,226) $200
Depreciation and amortization 60 84 214 249
Impairments 290 3 290 3
(Gain) loss on asset sales 19 (20) 14 (23)
Effect of change in accounting (2) - (6) -
Working capital decrease
(increase) 47 (258) (170) (386)
Deferred taxes 773 (18) 734 (68)
Other (72) 55 (73) (26)
Net cash flows -
operating activities (157) (112) (223) (51)
Purchases of property, plant
and equipment (67) (72) (191) (210)
Proceeds from divestitures and
asset sales 30 3 53 34
Other 69 16 27 (32)
Net cash flows -
investing activities 32 (53) (111) (208)
Net change in short-term debt 202 173 488 356
Payments on long-term debt - (5) (6) (239)
Proceeds from long-term debt 6 6 -
Dividends paid (18) (17) (54) (53)
Other (9) 3 (12) 16
Net cash flows -
financing activities 181 154 422 80
Net change in cash and cash
equivalents 56 (11) 88 (179)
Net change in cash -
discontinued operations - - - 2
Cash and cash equivalents -
beginning of period 651 498 619 664
Cash and cash equivalents - end
of period $707 $487 $707 $487
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Three Months Ended September 30, 2005
Dana
with DCC
on Equity Elimination Dana
Basis DCC Entries Consolidated
Net sales $2,396 $ $ $2,396
Other income (expense) (1) 19 (7) 11
2,395 19 (7) 2,407
Costs and expenses
Cost of sales 2,293 (3) 2,290
Selling, general and
administrative expenses 128 11 (3) 136
Impairment charges 290 290
Interest expense 34 9 (1) 42
2,745 20 (7) 2,758
Income (loss) before income
taxes (350) (1) - (351)
Income tax benefit (expense) (932) 3 (929)
Minority interest 1 1
Equity in earnings
of affiliates 7 1 (3) 5
Income from continuing
operations (1,274) 3 (3) (1,274)
Effect of change in
accounting 2 2
Net income $(1,272) $ 3 $ (3) $(1,272)
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)
Nine Months Ended September 30, 2005
Dana
with DCC
on Equity Elimination Dana
Basis DCC Entries Consolidated
Net sales $7,505 $ $ $7,505
Other income (expense) 41 49 (23) 67
7,546 49 (23) 7,572
Costs and expenses
Cost of sales 7,083 (11) 7,072
Selling, general and
administrative expenses 387 33 (7) 413
Impairment charges 290 290
Interest expense 102 28 (5) 125
7,862 61 (23) 7,900
Income (loss) before income
taxes (316) (12) - (328)
Income tax benefit (expense) (946) 21 (925)
Minority interest (5) (5)
Equity in earnings -
of affiliates 35 7 (16) 26
Income from continuing
operations (1,232) 16 (16) (1,232)
Effect of change in
accounting 6 - 6
Net income $(1,226) $ 16 $ (16) $(1,226)
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 September 30, 2004
(Restated)
Dana
with DCC
on Equity Elimination Dana
Basis DCC Entries Consolidated
Net sales $2,114 $ $ $2,114
Other income (expense) 23 (20) (11) (8)
2,137 (20) (11) 2,106
Costs and expenses
Cost of sales 1,970 (6) 1,964
Selling, general and
administrative expenses 115 11 (5) 121
Interest expense 42 11 53
2,127 22 (11) 2,138
Income before income taxes 10 (42) 0 (32)
Income tax benefit (expense) 29 54 83
Minority interest (3) (3)
Equity in earnings
of affiliates 18 - (12) 6
Income from continuing
operations 54 12 (12) 54
Income from discontinued
operations (12) (12)
Net income $ 42 $ 12 $ (12) $ 42
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)
Nine Months Ended September 30, 2004
(Restated)
Dana
with DCC
on Equity Elimination Dana
Basis DCC Entries Consolidated
Net sales $6,755 $ $ $6,755
Other income (expense) 37 26 (36) 27
6,792 26 (36) 6,782
Costs and expenses
Cost of sales 6,205 (19) 6,186
Selling, general and
administrative expenses 353 38 (16) 375
Interest expense 120 37 - 157
6,678 75 (35) 6,718
Income (loss) before income
taxes 114 (49) (1) 64
Income tax benefit (expense) (7) 91 1 85
Minority interest (9) (9)
Equity in earnings
of affiliates 67 4 (46) 25
Income from continuing
operations 165 46 (46) 165
Income from discontinued
operations 35 35
Net income $ 200 $ 46 $ (46) $ 200
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)
September 30, 2005
Dana
with DCC
on Equity Elimination Dana
Basis DCC Entries Consolidated
Current assets
Cash and cash
equivalents $ 707 $ 23 $ $ 730
Accounts receivable
Trade 1,454 1,454
Other 277 285 (288) 274
Inventories 878 878
Other current assets 123 183 (160) 146
Total current assets 3,439 491 (448) 3,482
Investment in leases - 664 (408) 256
Investments and other
assets 2,650 - (253) 2,397
Property, plant and
equipment, net 1,690 8 44 1,742
Total assets $7,779 $1,163 $(1,065) $7,877
Liabilities and Shareholders' Equity
Current liabilities
Notes payable $2,157 $ 431 $(284) $2,304
Accounts payable 1,322 - 1,322
Other current
liabilities 1,193 53 (164) 1,082
Total current
liabilities 4,672 484 (448) 4,708
Long-term debt 225 55 280
Deferred employee
benefits and other
noncurrent liabilities 1,742 305 (300) 1,747
Minority interest 83 2 85
Shareholders' equity 1,057 317 (317) 1,057
Total liabilities and
shareholders' equity $7,779 $1,163 $(1,065) $7,877
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 (Restated)
Dana
with DCC
on Equity Elimination Dana
Basis DCC Entries Consolidated
Assets
Current assets
Cash and cash
equivalents $ 619 $ 15 $ $ 634
Accounts receivable
Trade 1,254 1,254
Other 437 208 (208) 437
Inventories 898 898
Other current assets 170 137 (107) 200
Total current assets 3,378 360 (315) 3,423
Investment in leases 411 (130) 281
Investments and other
assets 3,338 467 (661) 3,144
Property, plant and
equipment, net 2,033 8 130 2,171
Total assets $8,749 $1,246 $(976) $9,019
Liabilities and Shareholders' Equity
Current liabilities
Notes payable $289 $68 $(202) $155
Accounts payable 1,330 1,330
Other current
liabilities 1,236 67 (115) 1,188
Total current
liabilities 2,855 135 (317) 2,673
Long-term debt 1,611 443 2,054
Deferred employee benefits
and other noncurrent
liabilities 1,752 311 (304) 1,759
Minority interest 120 2 122
Shareholders' equity 2,411 355 (355) 2,411
Total liabilities and
shareholders' equity $8,749 $1,246 $(976) $9,019
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 (Unaudited)
(in millions)
Three Months Ended September 30, 2005
Dana
with DCC
on Equity Elimination Dana
Basis DCC Entries Consolidated
Net income $(1,272) $ 3 $ (3) $(1,272)
Depreciation and
amortization 60 4 - 64
Loss on divestitures and
asset sales 19 - - 19
Effect of change in
accounting (2) (2)
Impairments 290 290
Working capital decrease
(increase) 47 (46) 21 22
Deferred taxes 773 (10) - 763
Other (72) 34 3 (35)
Net cash flows -
operating activities (157) (15) 21 (151)
Purchases of property, plant
and equipment (67) (2) - (69)
Payments received on leases
and partnerships - 32 - 32
Proceeds from Asset sales 30 9 - 39
Other 69 (31) - 38
Net cash flows -
investing activities 32 8 - 40
Net change in short-term
debt 202 - (21) 181
Proceeds from long-term
debt 6 15 21
Payments on long-term debt - - - -
Dividends paid (18) - - (18)
Other (9) - - (9)
Net cash flows -
financing activities 181 15 (21) 175
Net change in cash and cash
equivalents 56 8 - 64
Cash and cash equivalents -
beginning of period 651 15 - 666
Cash and cash equivalents -
end of period $707 $23 $ - $ 730
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 (Unaudited)
(in millions)
Nine Months Ended September 30, 2005
Dana
with DCC
on Equity Elimination Dana
Basis DCC Entries Consolidated
Net income $(1,226) $ 16 $ (16) $(1,226)
Depreciation and amortization 214 13 - 227
Loss on divestitures and asset
sales 14 - - 14
Effect of change in accounting (6) (6)
Impairments 290 290
Working capital increase (170) (104) 81 (193)
Deferred taxes 734 (6) - 728
Other (73) (27) (34) (134)
Net cash flows -
operating activities (223) (108) 31 (300)
Purchases of property, plant
and equipment (191) (2) (193)
Payments received on leases
and partnerships - 70 - 70
Proceeds from Asset sales 53 122 - 175
Other 27 1 - 28
Net cash flows -
investing activities (111) 191 - 80
Net change in short-term debt 488 (1) (81) 406
Proceeds from long-term debt 6 15 - 21
Payments on long-term debt (6) (39) - (45)
Dividends paid (54) (50) 50 (54)
Other (12) (12)
Net cash flows -
financing activities 422 (75) (31) 316
Net change in cash and cash
equivalents 88 8 - 96
Cash and cash equivalents -
beginning of period 619 15 - 634
Cash and cash equivalents - end
of period $707 $ 23 $ - $730
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
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Three Months Ended September 30, 2004
(Restated)
Dana
with DCC
on Equity Elimination Dana
Basis DCC Entries Consolidated
Net income $ 42 $ 12 $ (12) $ 42
Depreciation and amortization 84 6 - 90
Loss on divestitures and asset
sales (20) (12) - (32)
Impairments 3 21 24
Working capital decrease
(increase) (258) (141) 150 (249)
Deferred taxes (18) (13) - (31)
Other 55 (16) 7 46
Net cash flows -
operating activities (112) (143) 145 (110)
Purchases of property, plant
and equipment (72) (1) - (73)
Payments received on leases
and partnerships - 2 - 2
Proceeds from Asset sales 3 163 - 166
Other 16 3 - 17
Net cash flows -
investing activities (53) 165 - 112
Net change in short-term debt 173 - (145) 28
Payments on long-term debt (5) (96) - (101)
Dividends paid (17) - - (17)
Other 3 - - 3
Net cash flows -
financing activities 154 (96) (145) (87)
Net change in cash and cash
equivalents (11) (74) - (85)
Cash and cash equivalents -
beginning of period 498 99 - 597
Cash and cash equivalents -
end of period $487 $ 25 $ - $ 512
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
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Nine Months Ended September 30, 2004
(Restated)
Dana
with DCC
on Equity Elimination Dana
Basis DCC Entries Consolidated
Net income $ 200 $ 46 $ (46) $ 200
Depreciation and amortization 249 24 - 273
Loss on divestitures and asset
sales (23) (34) - (57)
Impairments 3 21 24
Working capital decrease
(increase) (386) (142) 150 (378)
Deferred taxes (68) (4) - (72)
Other (26) (62) 41 (47)
Net cash flows -
operating activities (51) (151) 145 (57)
Purchases of property, plant
and equipment (210) (7) 3 (214)
Payments received on leases
and partnerships 10 - 10
Proceeds from Asset sales 34 287 (3) 318
Other (32) 10 - (22)
Net cash flows -
investing activities (208) 300 - 92
Net change in short-term debt 356 (30) (145) 181
Proceeds from long-term debt - 5 5
Payments on long-term debt (239) (166) - (405)
Dividends paid (53) - - (53)
Other 16 - - 16
Net cash flows -
financing activities 80 (191) (145) (256)
Net change in cash and cash
equivalents (179) (42) - (221)
Net change in cash -
discontinued operations 2 2
Cash and cash equivalents -
beginning of period 665 66 - 731
Cash and cash equivalents -
end of period $ 488 $ 24 $ - $512
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.
Three Months Ended September 30,
Inter- Net
External Segment Operating Profit
2005 Sales Sales EBIT PAT (Loss)
ASG $1,745 $39 $41 $29 $(13)
HVTSG 642 2 16 10 (9)
DCC 3 3
Other 9 12 (75) (105) (44)
Total operations 2,396 53 (18) (63) (63)
Valuation adjustment against
deferred tax asset (920) (920)
Effect of change in accounting 2 2
Unusual items excluded from
performance measures (306) (291) (291)
Consolidated $2,396 $53 $(324) $(1,272) $(1,272)
2004 - Restated
ASG $1,534 $49 $65 $44 $9
HVTSG 559 1 41 26 10
DCC 4 4
Other 21 15 (65) (34) 17
Total continuing operations 2,114 65 41 40 40
Discontinued operations 29 17 17
Unusual items excluded from
performance measures (6) (15) (15)
Consolidated $2,114 $65 $64 $42 $42
Nine Months Ended September 30,
Inter- Net
External Segment Operating Profit
2005 Sales Sales EBIT PAT (Loss)
ASG $5,467 $110 $179 $128 $14
HVTSG 2,014 4 81 50 (3)
DCC 12 12
Other 24 42 (201) (210) (43)
Total operations 7,505 156 59 (20) (20)
Valuation adjustment against
deferred tax asset (920) (920)
Effect of change in accounting 6 6
Unusual items excluded from
performance measures (297) (292) (292)
Consolidated $7,505 $156 $(238) $(1,226) $(1,226)
2004 - Restated
ASG $4,966 $141 $270 $184 $85
HVTSG 1,719 3 125 77 34
DCC 16 16
Other 70 48 (174) (145) (3)
Total continuing operations 6,755 192 221 132 132
Discontinued operations 86 48 48
Unusual items excluded from
performance measures (15) 20 20
Consolidated $6,755 $192 $292 $200 $200
Three Months Ended September 30,
Inter- Net
External Segment Operating Profit
2005 Sales Sales EBIT PAT (Loss)
North America $1,476 $33 $(38) $(28) $(58)
Europe 452 30 31 22 12
South America 259 61 33 20 15
Asia Pacific 209 12 19 12 7
DCC 3 3
Other (63) (92) (42)
Total operations 2,396 136 (18) (63) (63)
Valuation adjustment to deferred
tax asset (920) (920)
Effect of change in accounting 2 2
Unusual items excluded from
performance measures (306) (291) (291)
Consolidated $2,396 $136 $(324) $(1,272) $(1,272)
2004 - Restated
North America $1,382 $33 $15 $9 $(15)
Europe 397 23 30 22 15
South America 172 56 28 17 14
Asia Pacific 163 14 9 6 2
DCC 4 4
Other (41) (18) 20
Total continuing operations 2,114 126 41 40 40
Discontinued operations 29 17 17
Unusual items excluded from
performance measures (6) (15) (15)
Consolidated $2,114 $126 $64 $42 $42
Nine Months Ended September 30,
Inter- Net
External Segment Operating Profit
2005 Sales Sales EBIT PAT (Loss)
North America $4,687 $93 $(23) $(18) $(105)
Europe 1,507 91 118 82 54
South America 713 187 87 54 41
Asia Pacific 598 37 51 33 20
DCC 12 12
Other (174) (183) (42)
Total operations 7,505 408 59 (20) (20)
Valuation adjustment against net
deferred tax assets (920) (920)
Effect of change in accounting 6 6
Unusual items excluded from
performance measures (297) (292) (292)
Consolidated $7,505 $408 $(238) $(1,226) $(1,226)
2004 - Restated
North America $4,553 $100 $166 $103 $23
Europe 1,255 74 94 67 44
South America 454 150 73 45 37
Asia Pacific 493 38 32 21 9
DCC 16 16
Other (144) (120) 3
Total continuing operations 6,755 362 221 132 132
Discontinued operations 86 48 48
Unusual items excluded from
performance measures (15) 20 20
Consolidated $6,755 $362 $292 $200 $200
FCMN Contact: michelle.hards@dana.com
Photo: http://www.newscom.com/cgi-bin/prnh/19990903/DANASOURCE: Dana Corporation
CONTACT: Investor Relations: Michelle L. Hards, +1-419-535-4636,
michelle.hards@dana.com, or Media Relations: Todd M. Romain, +1-419-535-4727,
todd.romain@dana.com, both of Dana Corporation
Web site: http://www.dana.com/
Company News On-Call: http://www.prnewswire.com/comp/226839.html