Dana Holding Corporation Reports Solid Third-Quarter 2009 Results

Continued Cost Savings, Operational Improvements, and Successful Equity Offering Contribute to Strong Liquidity, Improved Balance Sheet

PRNewswire
MAUMEE, Ohio
(NYSE:DAN)
Nov 3, 2009

MAUMEE, Ohio, Nov. 3 /PRNewswire-FirstCall/ --

  • EBITDA of $101 million, up $7 million over second quarter
  • Sales of $1,329 million, a 12-percent increase over prior quarter
  • Positive free cash flow nearly doubled to $145 million
  • Successful equity offering raises $250 million
  • Net debt reduced by 67% to $182 million
  • Available liquidity increased by 39% to $920 million

Dana Holding Corporation (NYSE: DAN) today announced continued improved results for the third-quarter of 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )

Earnings before interest, taxes, depreciation, amortization, and restructuring (EBITDA) was $101 million, up $7 million from the prior quarter. The improvement was primarily driven by increased production volumes and operational improvements.

The company narrowed its third-quarter net loss to $38 million, compared to a loss of $256 million during the same period last year. Third-quarter sales of $1,329 million, while down 31 percent from the same period last year, increased by $139 million compared with the prior quarter. The increase in sales over the past quarter was the result of an improving industry across most segments and regions.

Successful Equity Offering Raises $250 Million for Debt Repayment, Growth Opportunities

Dana recently completed a successful public offering of common stock that raised approximately $250 million, including $33 million in proceeds from the sale of additional shares sold in October. The company intends to use the net proceeds from the offering for general corporate purposes, including restructuring of operations, and to maintain flexibility for future growth. Additionally, in accordance with its credit agreement, the company used approximately 50 percent of the proceeds to repay debt.

At September 30, 2009, cash balances had increased to $814 million, compared to $553 million at June 30, 2009. Total available liquidity rose by 39 percent to $920 million, while net debt was reduced to $182 million, a 67-percent decrease from the second quarter.

"We are pleased that our cost savings and operational improvements continued to take hold during the third quarter," said Dana President and CEO Jim Sweetnam. "In combination with the successful equity offering, these improvements have provided us with strong liquidity and an improved balance sheet. "While there is certainly more to do, we are well positioned for growth opportunities moving forward."

Restructuring Actions Leading to Higher Margins

Despite reduced production volumes during the first nine months of 2009, Dana's cost reductions and pricing improvements resulted in significant margin improvement over the same period one year ago. Third-quarter 2009 gross margin was 6.2 percent, compared with 2.5 percent in the same period in 2008.

The increase in positive free cash flow, $145 million compared with $73 million during the second quarter, was driven by continued improvements in EBITDA and management of working capital.

Nine-Month Results

Sales for the nine months ended September 30, 2009, were $3,735 million, which compares with $6,574 million for the same period in 2008. For the first nine months of 2009, the company reported a net loss of $195 million compared with net income of $281 million for the same period in 2008. The nine-month 2008 results include a net gain of $754 million recognized in connection with the company's emergence from bankruptcy and application of fresh start accounting. EBITDA for the first nine months of 2009 was $211 million, compared with EBITDA of $345 million during the same period in 2008.

In addition, cost reduction efforts contributed to a more than $200 million increase in year-to-date cost reductions compared with 2008.

"We remain on target to achieve our 2009 objectives for cost reductions, pricing improvements, and cash generation," Sweetnam added. "At a macro level, we are seeing a very gradual improvement in the broader economy, which supports our outlook for modest near-term recovery in the majority of our global markets."

Dana to Host Third-Quarter Conference Call at 10:30 a.m. Today

Dana will discuss its third-quarter results in a conference call at 10:30 a.m. EST today. Participants may listen to the audio portion of the conference call either through audio streaming online or by telephone. Slide viewing is only available online via a link provided on the Dana Investor Web site. To dial into the conference call, domestic locations should call 1-888-311-4590 (Conference I.D. # 36174063). International locations should call 1-706-758-0054 (Conference I.D. # 36174063). Please ask for the Dana Holding Corporation Financial Webcast and Conference Call. Phone registration will be available beginning at 10 a.m. EST. An audio recording of the call will be available after 5 p.m. To access this recording, please dial 1-800-642-1687 (U.S. or Canada) or 1-706-645-9291 (international) and enter the conference I.D. number 36174063. A webcast replay will also be available after 5 p.m. today, and may be accessed via the Dana Investor Web site.

Non-GAAP Measures

In connection with Dana's emergence from bankruptcy on January 31, 2008, and the application of fresh start accounting in accordance with the provisions of the American Institute of Certified Public Accountants' Statement of Position 90-7, the post-emergence results of the successor company for the eight months ended September 30, 2008 and the pre-emergence results of the predecessor company for the one month ended January 31, 2008 are presented separately as successor and predecessor results in the financial statements presented in accordance with generally accepted accounting principles (GAAP). This presentation is required by GAAP as the successor company is considered to be a new entity and the results of the new entity reflect the application of fresh start accounting. For the readers' convenience and interest in this earnings release, we have combined the separate successor and predecessor periods to derive combined results for the nine months ended September 30, 2008. The financial information accompanying this release provides the separate successor and predecessor GAAP results for the applicable periods, along with the combined results described above for the first nine months of 2008.

This release refers to EBITDA, which we've defined to be earnings before interest, taxes, depreciation, amortization and restructuring. EBITDA is a non-GAAP financial measure, and the measure currently being used by Dana as the primary measure of its reportable operating segment performance. EBITDA was selected as the primary measure for operating segment performance as well as a relevant measure of Dana's overall performance given the enhanced comparability and usefulness after application of fresh start accounting. The most significant impact to Dana's ongoing results of operations as a result of applying fresh start accounting is higher depreciation and amortization.

By using EBITDA, which is a performance measure that excludes depreciation and amortization, the comparability of results is enhanced. Management also believes that EBITDA is an important measure since the financial covenants of our primary debt agreements are EBITDA-based, and our management incentive performance programs are based, in part, on EBITDA. Because it is a non-GAAP measure, EBITDA should not be considered a substitute for net income or other reported results prepared in accordance with GAAP. The financial information accompanying this release provides a reconciliation of EBITDA for the periods presented to the reported income (loss) from continuing operations before income taxes, which is a GAAP measure.

Forward-Looking Statements

Certain statements and projections contained in this news release are, by their nature, forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

Dana's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss important risk factors that could affect our business, results of operations and financial condition. The forward-looking statements in this news release speak only as of this date. Dana does not undertake any obligation to revise or update publicly any forward-looking statement for any reason.

About Dana Holding Corporation

Dana is a world leader in the supply of axles; driveshafts; and structural, sealing, and thermal-management products; as well as genuine service parts. The company's customer base includes virtually every major vehicle manufacturer in the global automotive, commercial vehicle, and off-highway markets. Based in Maumee, Ohio, the company employs approximately 23,000 people in 26 countries and reported 2008 sales of $8.1 billion. For more information, please visit: www.dana.com.

    DANA HOLDING CORPORATION
    Consolidated Statement of Operations (Unaudited)
    For the Three Months Ended September 30, 2009 and 2008


                                                       Three Months
                                                          Ended
                                                       September 30,
                                                       -------------
                                                        2009    2008
                                                        ----    ----
     Net sales                                        $1,329  $1,929
     Costs and expenses
         Cost of sales                                 1,247   1,881
         Selling, general and administrative expenses     73      87
         Amortization of intangibles                      18      18
         Realignment charges, net                         14      16
         Impairment of goodwill                                  105
         Impairment of intangible assets                           3
         Other income, net                                10       2
                                                         ---     ---
     Loss from continuing operations before interest,
      reorganization items and income taxes              (13)   (179)
     Interest expense                                     36      37
     Reorganization items                                          1
                                                         ---     ---
     Loss from continuing operations before income
      taxes                                              (49)   (217)
     Income tax benefit (expense)                          9     (24)
     Equity in earnings of affiliates                      2     (13)
                                                         ---     ---
     Loss from continuing operations                     (38)   (254)
     Loss from discontinued operations                            (1)
                                                         ---     ---
     Net loss                                            (38)   (255)
          Less: Noncontrolling interests net income                1
                                                         ---     ---
     Net loss attributable to the parent company         (38)   (256)
     Preferred stock dividend requirements                 8       8
                                                         ---     ---
     Net loss available to common stockholders          $(46)  $(264)
                                                        ====   =====

     Loss per share from continuing operations
      attributable to parent company stockholders:
        Basic                                         $(0.45) $(2.64)
        Diluted                                       $(0.45) $(2.64)
     Loss per share from discontinued operations
      attributable to parent company stockholders:
        Basic                                             $-  $(0.02)
        Diluted                                           $-  $(0.02)
     Net loss per share attributable to parent
      company stockholders:
        Basic                                         $(0.45) $(2.66)
        Diluted                                       $(0.45) $(2.66)
     Average common shares outstanding
        Basic                                            101     100
        Diluted                                          101     100



    DANA HOLDING CORPORATION
    Consolidated Statement of Operations (Unaudited)
    For the Nine Months Ended September 30, 2009 and 2008

                             Dana   Combined (1)        Dana     Prior Dana
                             ----   ------------        ----     ----------
                                                   Eight Months   One Month
                              Nine Months Ended       Ended         Ended
                                September 30,     September 30,  January 31,
                                -------------
                              2009          2008        2008         2008
                              ----          ----        ----         ----
     Net sales              $3,735        $6,574      $5,823         $751
     Costs and expenses
       Cost of sales         3,598         6,274       5,572          702
       Selling, general and
        administrative
        expenses               217           270         236           34
       Amortization of
        intangibles             53            49          49
       Realignment charges,
        net                     93            73          61           12
       Impairment of goodwill                180         180
       Impairment of
        intangible assets        6            10          10
       Other income, net       100            62          54            8
                               ---           ---         ---          ---
     Income (loss) from
      continuing operations
      before interest,
      reorganization items
      and income taxes        (132)         (220)       (231)          11
     Interest expense          108           107          99            8
     Reorganization items       (2)          120          22           98
     Fresh start accounting
      adjustments                          1,009                    1,009
                              -----        -----       -----        -----
     Income (loss) from
      continuing operations
      before income taxes     (238)          562        (352)         914
     Income tax benefit
      (expense)                 39          (255)        (56)        (199)
     Equity in earnings
      of affiliates             (2)           (8)        (10)           2
                               ---           ---         ---          ---
     Income (loss) from
      continuing operations   (201)          299        (418)         717
     Loss from discontinued
      operations                             (10)         (4)          (6)
                              ----           ---         ---          ---
     Net income (loss)        (201)          289        (422)         711
       Less: Noncontrolling
        interests net income
        (loss)                  (6)            8           6            2
                               ---           ---         ---          ---
     Net income (loss)
      attributable to the
      parent company          (195)          281        (428)         709
     Preferred stock
      dividend requirements     24            21          21
                               ---           ---         ---          ---
     Net income (loss)
      available to common
      stockholders           $(219)         $260       $(449)        $709
                             =====          ====       =====         ====

     Income (loss) per share
      from continuing
      operations attributable
      to parent company
      stockholders:
        Basic               $(2.17)                   $(4.45)       $4.77
        Diluted             $(2.17)                   $(4.45)       $4.75
     Loss per share from
      discontinued
      operations
      attributable to
      parent company
      stockholders:
        Basic                   $-                    $(0.04)      $(0.04)
        Diluted                 $-                    $(0.04)      $(0.04)
     Net income (loss)
      per share attributable
      to parent company
      stockholders:
        Basic               $(2.17)                   $(4.49)       $4.73
        Diluted             $(2.17)                   $(4.49)       $4.71
     Average common shares
      outstanding
        Basic                  100                       100          150
        Diluted                100                       100          150

     (1) See "Non-GAAP Measures" in body of press release for comments
     regarding the presentation of combined information for the nine months
     ended September 30, 2008.



    DANA HOLDING CORPORATION
    Consolidated Balance Sheet (Unaudited)
    As of September 30, 2009 and December 31, 2008

                                                   September 30,  December 31,
     Assets                                                2009          2008
                                                           ----          ----
     Current assets
     Cash and cash equivalents                             $814          $777
     Accounts receivable
       Trade, less allowance for doubtful accounts
          of $19 in 2009 and $23 in 2008                    800           827
       Other                                                158           170
     Inventories
       Raw materials                                        309           394
       Work in process and finished goods                   370           521
     Other current assets                                    75            58
                                                            ---           ---
         Total current assets                             2,526         2,747

     Goodwill                                               113           108
     Intangibles                                            508           569
     Investments and other assets                           242           207
     Investments in affiliates                              135           135
     Property, plant and equipment, net                   1,738         1,841
                                                          -----         -----
         Total assets                                    $5,262        $5,607
                                                         ======        ======

     Liabilities and equity
     Current liabilities
     Notes payable, including current portion of
      long-term debt                                        $30           $70
     Accounts payable                                       643           824
     Accrued payroll and employee benefits                  122           120
     Accrued realignment costs                               30            65
     Taxes on income                                         65            93
     Other accrued liabilities                              276           274
                                                            ---           ---
         Total current liabilities                        1,166         1,446

     Long-term debt                                         966         1,181
     Deferred employee benefits and other non-current
      liabilities                                           867           845
     Commitments and contingencies
                                                          -----         -----
         Total liabilities                                2,999         3,472

     Parent company stockholders' equity
       Preferred stock, 50,000,000 shares authorized
         Series A, $0.01 par value, 2,500,000
          issued and outstanding                            242           242
         Series B, $0.01 par value, 5,400,000
          issued and outstanding                            529           529
       Common stock, $.01 par value, 450,000,000 authorized,
         134,164,308 issued and outstanding                   1             1
       Additional paid-in capital                         2,545         2,321
       Accumulated deficit                                 (925)         (706)
       Accumulated other comprehensive loss                (228)         (359)
                                                           ----          ----
         Total parent company stockholders' equity        2,164         2,028
     Noncontrolling interests                                99           107
                                                            ---           ---
         Total equity                                     2,263         2,135
                                                          -----         -----
         Total liabilities and equity                    $5,262        $5,607
                                                         ======        ======



    DANA HOLDING CORPORATION
    Consolidated Statement of Cash Flows (Unaudited)
    For the Three Months Ended September 30, 2009 and 2008

                                                      Three Months
                                                          Ended
                                                      September 30,
                                                      -------------
                                                      2009    2008
                                                      ----    ----
     Cash flows - operating activities
     Net loss                                         $(38)  $(255)
     Depreciation                                       79      74
     Amortization of intangibles                        22      22
     Amortization of deferred financing charges and
      original issue discount                            9       6
     Impairment of goodwill and other intangible
      Assets                                                   108
     Deferred income taxes                              (5)     (1)
     Loss on extinguishment of debt                      5
     Reorganization:
       Reorganization items net of cash payments                (1)
       Payment of claims (1)                                    (3)
     Change in working capital                          84     (59)
     Other, net                                          9      27
                                                       ---     ---
     Net cash flows provided by (used in) operating
      activities (1)                                   165     (82)
                                                       ---     ---

     Cash flows - investing activities
     Purchases of property, plant and equipment (1)    (20)    (72)
     Proceeds from sale of businesses and assets         1
     Other                                                       4
                                                       ---     ---
     Net cash flows used in investing activities       (19)    (68)
                                                       ---     ---

     Cash flows - financing activities
     Net change in short-term debt                      (1)     14
     Deferred financing payments                                (1)
     Proceeds from long-term debt                        2
     Repayment of long-term debt                      (115)     (4)
     Proceeds from issuance of common stock            217
     Dividends paid to preferred stockholders                   (7)
     Dividends paid to noncontrolling interests         (3)     (1)
     Other                                              (1)      8
                                                       ---     ---
     Net cash flows provided by financing
      activities                                        99       9
                                                       ---     ---

     Net increase (decrease) in cash and cash
      equivalents                                      245    (141)
     Cash and cash equivalents - beginning of
      period                                           553   1,191
     Effect of exchange rate changes on cash
      balances                                          16     (43)
                                                       ---     ---
     Cash and cash equivalents - end of period        $814  $1,007
                                                      ====  ======


    (1) Free cash flow of $145 in 2009 and ($151) in 2008 is the sum of net
    cash provided by (used in) operating activities (excluding claims
    payments) reduced by the purchases of property, plant and equipment.



    DANA HOLDING CORPORATION
    Consolidated Statement of Cash Flows (Unaudited)
    For the Nine Months Ended September 30, 2009 and 2008

                              Dana  Combined (1)        Dana    Prior Dana
                              ----  ------------        ----    ----------
                                                   Eight Months   One Month
                              Nine Months Ended       Ended         Ended
                                September 30,     September 30, January 31,
                                -------------
                              2009          2008        2008         2008
                              ----          ----        ----         ----
     Cash flows - operating
      activities
     Net loss                $(201)         $289       $(422)        $711
     Depreciation              231           217         194           23
     Amortization of
      intangibles               64            60          60
     Amortization of inventory
      valuation                               49          49
     Amortization of
      deferred financing
      charges and original
      issue discount            27            17          17
     Impairment of goodwill
      and other intangible
      assets                     6           190         190
     Deferred income taxes     (31)          173         (18)         191
     Gain on extinguishment
      of debt                  (35)
     Reorganization:
       Reorganization items
        net of cash
        payments                (4)           55         (24)          79
       Payment of claims (2)                (100)       (100)
       Payments to VEBAs (2)                (788)       (733)         (55)
       Gain on settlement of
        liabilities subject to
        compromise                           (27)                     (27)
       Fresh start adjustments            (1,009)                  (1,009)
     Pension contributions
      in excess of expense      (5)          (32)        (32)
     Change in working
      capital                   49          (213)       (152)         (61)
     Other, net                (13)           64          38           26
                               ---           ---         ---          ---
     Net cash flows provided
      by (used in) operating
      activities (2)            88        (1,055)       (933)        (122)
                                --        ------        ----         ----

     Cash flows - investing
      activities purchases of
      property, plant and
      equipment (2)            (74)         (164)       (148)         (16)
     Proceeds from sale of
      businesses and assets      3             5                        5
     Change in restricted cash                93                       93
     Other                                    (5)                      (5)
                               ---           ---        ----          ---
     Net cash flows provided
      by (used in) investing
      activities               (71)          (71)       (148)          77
                               ---           ---        ----          ---

     Cash flows - financing
      activities
     Net change in short-
      term debt                (36)          (92)        (74)         (18)
     Advance received on
      corporate facility
      sale                      11
     Proceeds from Exit
      Facility debt                        1,430          80        1,350
     Deferred financing
      payments                  (1)          (42)         (2)         (40)
     Proceeds from long-term
      debt                       5
     Repayment of long-term
      debt                    (197)          (11)        (11)
     Proceeds from issuance
      of common stock          217
     Dividends paid to
      preferred stockholders                 (18)        (18)
     Dividends paid to
      noncontrolling
      interests                 (5)           (6)         (6)
     Repayment of debtor-in-
      possession facility                   (900)                    (900)
     Payment of DCC Medium Term
      Notes                                 (136)                    (136)
     Original issue discount
      payment                               (114)                    (114)
     Issuance of Series A and
      Series B preferred stock               771                      771
     Other                      (1)                        1           (1)
                               ---           ---         ---          ---
     Net cash flows provided
      by (used in) financing
      activities                (7)          882         (30)         912
                               ---           ---         ---          ---

     Net increase (decrease)
      in cash and cash
      equivalents               10          (244)     (1,111)         867
     Cash and cash
      equivalents - beginning
      of period                777         1,271       2,147        1,271
     Effect of exchange rate
      changes on cash
      balances                  27           (24)        (29)           5
     Net change in cash of
      discontinued
      operations                               4                        4
                              ----          ----      ------         ----
     Cash and cash
      equivalents - end of
      period                  $814        $1,007      $1,007       $2,147
                              ====        ======      ======       ======


    (1) See "Non-GAAP Measures" in body of press release for comments
    regarding the presentation of combined information for the nine months
    ended September 30, 2008.

    (2) Free cash flow of $14 in 2009 and ($331) in 2008 is the sum of net
    cash provided by (used in) operating activities (excluding claims
    payments) reduced by the purchases of property, plant and equipment.



    DANA HOLDING CORPORATION
    Segment Sales & EBITDA
    For the Three Months Ended September 30, 2009 and 2008

                                                            Three Months
                                                                Ended
                                                            September 30,
                                                            -------------
    SALES                                                    2009    2008
                                                             ----    ----
      Light Vehicle Driveline                                $547    $671
      Sealing                                                 140     175
      Thermal                                                  45      60
      Structures                                              157     192
      Commercial Vehicle                                      256     405
      Off-Highway                                             184     424
      Other                                                             2
                                                           ------  ------
      Total Sales                                          $1,329  $1,929
                                                           ======  ======

    EBITDA
      Light Vehicle Driveline                                 $46     $20
      Sealing                                                  11      14
      Thermal                                                   3      (2)
      Structures                                               11       5
      Commercial Vehicle                                       26       7
      Off-Highway                                              11      17
                                                              ---     ---
    Segment EBITDA                                            108      61
      Shared services and administrative                       (5)     (6)
      Other expense, net                                       (2)     (5)
      Foreign exchange not in segments                                 (3)
                                                             ----     ---
    EBITDA                                                   $101     $47
                                                             ====     ===



    DANA HOLDING CORPORATION
    Segment Sales and EBITDA
    For the Nine Months Ended September 30, 2009 and 2008

                             Dana  Combined (1)         Dana    Prior Dana
                             ----  ------------         ----    ----------
                                                   Eight Months   One Month
                             Nine Months Ended        Ended         Ended
                               September 30,      September 30,  January 31,
                               -------------
    SALES                    2009          2008         2008         2008
                             ----          ----         ----         ----
      Light Vehicle
       Driveline           $1,426        $2,376       $2,095         $281
      Sealing                 377           571          507           64
      Thermal                 126           217          189           28
      Structures              403           717          627           90
      Commercial Vehicle      763         1,251        1,121          130
      Off-Highway             640         1,436        1,279          157
      Other                                   6            5            1
                           ------           ---          ---          ---
      Total Sales          $3,735        $6,574       $5,823         $751
                           ======        ======       ======         ====

    EBITDA
      Light Vehicle
       Driveline              $79          $106          $96          $10
      Sealing                  11            56           50            6
      Thermal                   3             7            4            3
      Structures               20            49           45            4
      Commercial Vehicle       53            53           47            6
      Off-Highway              27           106           92           14
                              ---           ---          ---          ---
    Segment EBITDA            193           377          334           43
      Shared services and
       administrative         (15)          (19)         (16)          (3)
      Other income
       (expense), net          30           (10)          (8)          (2)
      Foreign exchange
       not in segments          3            (3)          (3)
                              ---           ---          ---          ---
    EBITDA                   $211          $345         $307          $38
                             ====          ====         ====          ===

    (1) See "Non-GAAP Measures" in body of press release for comments
    regarding the presentation of combined information for the nine months
    ended September 30, 2008.



    DANA HOLDING CORPORATION
    Segment EBITDA Reconciliation (Unaudited)
    Reconciliation of Segment EBITDA to Income (Loss)
    from Continuing Operations Before Income Taxes
    For the Three Months Ended September 30, 2009 and 2008

                                                           Three Months
                                                               Ended
                                                           September 30,
                                                           -------------
                                                            2009   2008
                                                            ----   ----
    Segment EBITDA                                          $108    $61
      Shared services and administrative                      (5)    (6)
      Other expense, net                                      (2)    (5)
      Foreign exchange not in segments                               (3)
                                                             ---    ---
    EBITDA                                                   101     47
      Depreciation                                           (79)   (74)
      Amortization                                           (22)   (22)
      Realignment                                            (14)   (16)
      Impairment                                                   (108)
      Reorganization items, net                                      (1)
      Loss on extinguishment of debt                          (5)
      Strategic transaction expenses                          (2)    (4)
      Loss on sale of assets, net                             (1)    (5)
      Stock compensation expense                              (3)    (1)
      Foreign exchange on intercompany loans
       and market value adjustments on hedges                  6     (7)
      Interest expense                                       (36)   (37)
      Interest income                                          6     11
                                                             ---    ---
      Loss from continuing operations
       before income taxes                                  $(49) $(217)
                                                            ====  =====



    DANA HOLDING CORPORATION
    Segment EBITDA Reconciliation (Unaudited)
    Reconciliation of Segment EBITDA to Income (Loss)
    from Continuing Operations Before Income Taxes
    For the Nine Months Ended September 30, 2009 and 2008

                               Dana  Combined (1)         Dana   Prior Dana
                               ----  ------------         ----   ----------
                                                    Eight Months   One Month
                               Nine Months Ended       Ended         Ended
                                 September 30,     September 30,  January 31,
                                 -------------
                               2009          2008         2008         2008
                               ----          ----         ----         ----
    Segment EBITDA             $193          $377         $334          $43
      Shared services and
       administrative           (15)          (19)         (16)          (3)
      Other income
       (expense), net            30           (10)          (8)          (2)
      Foreign exchange not
       in segments                3            (3)          (3)
                                ---           ---          ---          ---
    EBITDA                      211           345          307           38
      Depreciation             (231)         (217)        (194)         (23)
      Amortization              (64)         (109)        (109)
      Realignment               (93)          (73)         (61)         (12)
      DCC EBIT                                 (2)          (2)
      Impairment                 (6)         (190)        (190)
      Reorganization items,
       net                        2          (120)         (22)         (98)
      Gain on extinguishment
       of debt                   35
      Strategic transaction
       expenses                  (4)           (7)          (7)
      Loss on sale of
       assets, net               (2)           (7)          (7)
      Stock compensation
       expense                   (7)           (4)          (4)
      Foreign exchange on
       intercompany loans
       and market value
       adjustments on hedges     11             4                         4
      Interest expense         (108)         (107)         (99)          (8)
      Interest income            18            40           36            4
      Fresh start accounting
       adjustments                          1,009                     1,009
                                ---         -----          ---        -----
      Income (loss) from
       continuing operations
       before income taxes    $(238)         $562        $(352)        $914
                              =====          ====        =====         ====

    (1)  See "Non-GAAP Measures" in body of press release for comments
     regarding the presentation of combined information for the nine months
     ended September 30, 2008.


Photo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA

SOURCE: Dana Holding Corporation

Web site: http://www.dana.com/


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