Dana Holding Corporation Reports Third-Quarter Results

- Reported quarterly net income of $110 million and year-to-date net income of $148 million

- Posted adjusted EBITDA of $200 million on sales of $2.0 billion

- Achieved adjusted EBITDA margin of 10.2 percent

- Generated free cash flow of $50 million

- Portfolio of fuel-saving technologies continued to expand

Oct 27, 2011

MAUMEE, Ohio, Oct. 27, 2011 /PRNewswire/ -- Dana Holding Corporation (NYSE: DAN) today announced its third-quarter 2011 results. The company recorded third-quarter net income of $110 million, which included a $60 million gain from the sale of interests in two joint ventures to Getrag, and adjusted EBITDA of $200 million; these compared to $46 million and $148 million, respectively, for the prior-year period.  Year-to-date net income was $148 million, compared to $24 million in 2010.

(Logo: http://photos.prnewswire.com/prnh/19990903/DANA )

Sales for the quarter were $2.0 billion, up nearly 30 percent over the third quarter of 2010. Dana achieved an adjusted EBITDA margin of 10.2 percent, compared to 9.8 percent for the prior-year period.  Diluted adjusted earnings per share in the quarter were $0.45, compared to $0.28 in the prior-year period.

Dana generated free cash flow of $50 million during the third quarter. Additionally, the company received $136 million in cash from the sale of joint venture interests to Getrag. Global liquidity remains strong at $1.3 billion.

"Achieving our third-quarter targets reflects disciplined execution of the fundamentals – delivering quality product on time, controlling costs, and offering innovative technologies to help our customers improve fuel efficiency," said Dana President and Chief Executive Officer Roger J. Wood. "Order volumes remain strong overall, and we remain on track to meet our 2011 objectives."

Sales for the first nine months of the year were $5.7 billion, up $1.1 billion over the same period in 2010.  Adjusted EBITDA for the nine-month period was $582 million, up $172 million over the same period one year ago.    

Product Technologies

Improving fuel efficiency and reducing emissions continue to drive Dana's product development efforts.  Third-quarter highlights in this area included:

  • Dana and Bosch Rexroth AG completed their 50-50 joint venture to develop and manufacture advanced hydromechanical variable transmissions for off-highway vehicles. Test vehicles with this technology have shown fuel savings of up to 20 percent;
  • Dana launched the lightweight Spicer® 90S drive axle, developed specifically for commercial vehicles in the Indian market; and
  • Broad-based interest continued in Dana's battery cooling technologies, which are now part of 20 electric and hybrid-electric vehicles, as well as its fuel cell components.

Dana was recently recognized for two products that help improve fuel efficiency. The company received the 2011 North American Frost & Sullivan Technology Innovation Award for its heavy-duty Spicer Diamond™ Series driveshaft, which weighs up to 40 percent less than a traditional all-steel driveshaft. Dana's line of active warm-up units was also chosen as a finalist for the Automotive News PACE Awards.

Guidance for 2011

Dana updated its earnings guidance for 2011:

  • Adjusted EBITDA is now projected to be approximately $780 million versus the previous guidance of $765 million to $785 million; and
  • Diluted adjusted earnings per share are expected to total $1.65 to $1.70 compared to earlier guidance of $1.60 to $1.70 per diluted adjusted share.

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

Dana will discuss its second-quarter results in a conference call at 10 a.m. EDT today. Participants may listen to the conference call via audio streaming online or telephone. Slide viewing is available via Dana's investor website – www.dana.com/investors. United States and Canadian locations should dial 1-888-311-4590 and international locations should call 1-706-758-0054, and enter conference I.D. number 17756215.  Please ask for the "Dana Holding Corporation Financial Webcast."  Phone registration will be available starting at 9:30 a.m.  

An audio recording of the webcast will be available after 5 p.m. today; dial 1-855-859-2056 (U.S. or Canada) or 1-404-537-3406 (international) and enter Conference I.D. 17756215.  A webcast replay will be available after 5 p.m. today, and may be accessed via Dana's Investor website.

Non-GAAP Measures

This release refers to adjusted EBITDA, a non-GAAP financial measure that we have defined as earnings before interest, taxes, depreciation, amortization, non-cash equity grant expense, restructuring expense, and other nonrecurring items (gain/loss on debt extinguishment or divestitures, impairment, etc). 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 adjusted EBITDA, a performance measure that excludes depreciation and amortization, the comparability of results is enhanced. Management also believes that adjusted EBITDA is an important measure since the financial covenants in our debt agreements are based, in part, on adjusted EBITDA. Adjusted EBITDA should not be considered a substitute for net income (loss) before income taxes or other reported results prepared in accordance with GAAP.

Diluted adjusted EPS, another non-GAAP financial measure referenced in this release, is defined as adjusted net income divided by adjusted diluted shares.  We define adjusted net income as net income (loss) attributable to the parent company, excluding restructuring expense, amortization expense, and nonrecurring items (as used in adjusted EBITDA), net of any associated income tax effects.  We define adjusted diluted shares as diluted shares as determined in accordance with GAAP based on adjusted net income. This measure is considered useful for purposes of providing investors, analysts, and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to EPS reported by other companies.

Free cash flow is also a non-GAAP financial measure referenced in this release, which we have defined as cash provided by (used in) operating activities, excluding any bankruptcy claim-related payments, less purchases of property, plant, and equipment. This measure is useful in evaluating the operational cash flow of the company, inclusive of the spending required to maintain the operations.

The financial information accompanying this release provides reconciliations of adjusted EBITDA, diluted adjusted EPS, and free cash flow to the most directly comparable financial measures calculated and presented in accordance with GAAP.

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 driveline products (axles, driveshafts, and transmissions), power technologies (sealing and thermal-management products), and genuine service parts for light- and heavy-duty vehicle manufacturers. The company's customer base includes nearly every major vehicle manufacturer in the global automotive, commercial vehicle, and off-highway markets. Based in Maumee, Ohio, the company employs approximately 24,000 people in 26 countries and reported 2010 sales of $6.1 billion. For more information, please visit: www.dana.com.


DANA HOLDING CORPORATION

Consolidated Statement of Operations (Unaudited)

For the Three Months Ended September 30, 2011 and 2010








Three Months Ended

(In millions except per share amounts)


September 30,



2011


2010

Net sales


$ 1,952


$ 1,516

Costs and expenses





    Cost of sales


1,719


1,338

    Selling, general and administrative expenses


111


99

    Amortization of intangibles


20


15

    Restructuring charges, net


24


10

    Other income, net


77


10

Income before interest and income taxes


155


64

Interest expense


20


22

Income before income taxes


135


42

Income tax benefit (expense)


(29)


4

Equity in earnings of affiliates


6


1

Net income


112


47

    Less: Noncontrolling interests net income


2


1

Net income attributable to the parent company


110


46

Preferred stock dividend requirements


8


8

Net income available to common stockholders


$    102


$      38






Net income per share available to parent





    company common stockholders:





   Basic


$   0.69


$   0.27

   Diluted


$   0.51


$   0.22

Weighted-average common shares outstanding





   Basic


147


141

   Diluted


215


212





DANA HOLDING CORPORATION

Consolidated Statement of Operations (Unaudited)

For the Nine Months Ended September 30, 2011 and 2010








Nine Months Ended

(In millions except per share amounts)


September 30,



2011


2010

Net sales


$ 5,685


$ 4,550

Costs and expenses





    Cost of sales


5,004


4,063

    Selling, general and administrative expenses


317


292

    Amortization of intangibles


58


46

    Restructuring charges, net


65


60

    Other income, net


49


9

Income before interest and income taxes


290


98

Interest expense


59


68

Income before income taxes


231


30

Income tax expense


(91)


(10)

Equity in earnings of affiliates


17


7

Net income


157


27

    Less: Noncontrolling interests net income


9


3

Net income attributable to the parent company


148


24

Preferred stock dividend requirements


23


24

Net income available to common stockholders


$    125


$         -






Net income per share available to parent





    company common stockholders:





   Basic


$   0.85


$       -

   Diluted


$   0.69


$       -

Weighted-average common shares outstanding





   Basic


146


140

   Diluted


215


140





DANA HOLDING CORPORATION



Consolidated Balance Sheet (Unaudited)



As of September 30,  2011 and December 31, 2010









(In millions except share and per share amounts)







September 30,


December 31,

Assets

2011


2010

Current assets




Cash and cash equivalents

$               851


$          1,090

Marketable securities

                   50


                 54

Accounts receivable





Trade, less allowance for doubtful accounts





of $10 in 2011 and $11 in 2010

              1,097


               816


Other

                 174


               184

Inventories

                 827


               708

Other current assets

                   81


                 81



Total current assets

              3,080


            2,933

Goodwill

                 104


               104

Intangibles

                 427


               352

Investments and other assets

                 258


               238

Investments in affiliates

                 190


               123

Property, plant and equipment, net

              1,289


            1,351



Total assets

$            5,348


$          5,101







Liabilities and equity




Current liabilities




Notes payable, including current portion of long-term debt

$                 65


$             167

Accounts payable

              1,029


               779

Accrued payroll and employee benefits

                 157


               144

Accrued restructuring costs

                   29


                 28

Taxes on income

                   53


                 38

Other accrued liabilities

                 231


               251



Total current liabilities

              1,564


            1,407

Long-term debt

                 839


               780

Pension and postretirement obligations

                 708


               740

Other noncurrent liabilities

                 381


               388



Total liabilities

              3,492


            3,315

Commitments and contingencies




Parent company stockholders' equity





Preferred stock, 50,000,000 shares authorized






Series A, $0.01 par value, 2,500,000 shares outstanding

                 242


               242



Series B, $0.01 par value, 5,221,199 and 5,311,298






       shares outstanding

                 511


               520


Common stock, $0.01 par value, 450,000,000 shares authorized,






 147,149,436 and 144,126,032 outstanding

                     1


                   1


Additional paid-in capital

              2,641


            2,613


Accumulated deficit

            (1,064)


          (1,189)


Treasury stock, at cost (544,274 and 379,631 shares)

                   (7)


                 (4)


Accumulated other comprehensive loss

               (570)


             (496)



Total parent company stockholders' equity

              1,754


            1,687

Noncontrolling equity

                 102


                 99



Total equity

              1,856


            1,786



Total liabilities and equity

$            5,348


$          5,101





DANA HOLDING CORPORATION





Consolidated Statement of Cash Flows (Unaudited)





For the Three Months Ended September 30,  2011 and 2010











Three Months Ended

(In millions)


September 30,




2011


2010

Cash flows − operating activities





Net income


$ 112


$      47

Depreciation


53


57

Amortization of intangibles


23


19

Amortization of deferred financing charges and original issue discount


1


7

Loss on extinguishment of debt




3

Gain on sale of equity investments


(60)



Deferred income taxes


(1)


(4)

Pension contributions (in excess of) less than expense


(6)


4

Change in working capital


(11)


(43)

Other, net


(5)


5

Net cash flows provided by operating activities (1)


106


95







Cash flows − investing activities





Purchases of property, plant and equipment (1)


(56)


(36)

Proceeds from sale of equity investments


136



Other


17


8

Net cash flows provided by (used in) investing activities


97


(28)







Cash flows − financing activities





Net change in short-term debt


13



Proceeds from long-term debt


1


51

Repayment of long-term debt


(7)


(47)

Dividends paid to preferred stockholders


(8)


(16)

Dividends paid to noncontrolling interests


(2)


(4)

Other


1


1

Net cash flows used in financing activities


(2)


(15)







Net increase in cash and cash equivalents


201


52

Cash and cash equivalents − beginning of period


718


997

Effect of exchange rate changes on cash balances


(68)


36

Cash and cash equivalents − end of period


$ 851


$ 1,085













(1)     Free cash flow of $50 in 2011 and $59 in 2010 is the sum of net cash provided by operating

activities 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,  2011 and 2010












Nine Months Ended

(In millions)


September 30,




2011


2010

Cash flows − operating activities





Net income


$          157


$            27

Depreciation


            163


            180

Amortization of intangibles


              68


              57

Amortization of deferred financing charges and original issue discount


                5


              20

Loss on extinguishment of debt


              53


                7

Gain on sale of equity investments


            (60)



Deferred income taxes


                3


            (10)

Pension contributions (in excess of) less than expense


              (4)


              13

Loss on sale of business




                5

Reorganization-related tax claim payment (1)




            (75)

Change in working capital


          (183)


            (10)

Other, net


            (16)


                3

Net cash flows provided by operating activities (1)


            186


            217







Cash flows − investing activities





Purchases of property, plant and equipment (1)


          (127)


            (62)

Acquisition of businesses


          (163)



Payments to acquire interest in equity affiliate


          (124)



Proceeds from sale of equity investments


            136



Proceeds from sale of business


              15


            113

Other


                6


              10

Net cash flows provided by (used in) investing activities


          (257)


              61







Cash flows − financing activities





Net change in short-term debt


              25


              13

Proceeds from long-term debt


            764


              52

Repayment of long-term debt


          (879)


          (135)

Deferred financing payments


            (26)



Dividends paid to preferred stockholders


            (23)


            (32)

Dividends paid to noncontrolling interests


              (5)


              (6)

Other


                8


                2

Net cash flows used in financing activities


          (136)


          (106)







Net increase (decrease) in cash and cash equivalents


          (207)


            172

Cash and cash equivalents − beginning of period


         1,090


            888

Effect of exchange rate changes on cash balances


            (32)


              25

Cash and cash equivalents − end of period


$          851


$       1,085













(1)

Free cash flow of $59 in 2011 and $230 in 2010 is the sum of net cash provided by operating


activities (exclusive of reorganization-related claims payments) reduced by the purchases of


property, plant and equipment.









DANA HOLDING CORPORATION

Segment Sales & Segment EBITDA (Unaudited)




For the Three Months Ended September 30,  2011 and 2010














($ in millions)



Three Months Ended




September 30,

SALES



2011


2010

Light Vehicle Driveline



$    689


$    602

Power Technologies



256


235

Commercial Vehicle



611


394

Off-Highway



385


271

Structures



12


13

Other



(1)


1

Total Sales



$ 1,952


$ 1,516







Segment EBITDA






Light Vehicle Driveline



$      74


$      63

Power Technologies



31


33

Commercial Vehicle



61


41

Off-Highway



42


23

Structures






Total Segment EBITDA



208


160

  Corporate expense and other items, net



(8)


(12)

Adjusted EBITDA



$    200


$    148





DANA HOLDING CORPORATION



Segment Sales & Segment EBITDA (Unaudited)



For the Nine Months Ended September 30,  2011 and 2010













($ in millions)



Nine Months Ended




September 30,

SALES



2011


2010

Light Vehicle Driveline



$ 2,016


$ 1,771

Power Technologies  



792


697

Commercial Vehicle



1,669


1,089

Off-Highway



1,172


815

Structures



36


175

Other





3

Total Sales



$ 5,685


$ 4,550







Segment EBITDA






Light Vehicle Driveline



$    200


$    169

Power Technologies



108


95

Commercial Vehicle



159


104

Off-Highway



134


69

Structures



1


8

Total Segment EBITDA



602


445

  Corporate expense and other items, net



(20)


(35)

Adjusted EBITDA



$    582


$    410





DANA HOLDING CORPORATION






Reconciliation of Segment and Adjusted EBITDA to  



Income Before Income Taxes (Unaudited)





For the Three Months Ended September 30,  2011 and 2010



















(In millions)



Three Months Ended




September 30,




2011


2010

Segment EBITDA



$ 208


$ 160

Corporate expense and other items, net



(8)


(12)

Adjusted EBITDA



200


148

Depreciation



(53)


(57)

Amortization of intangibles



(23)


(19)

Restructuring



(24)


(10)

Loss on extinguishment of debt





(3)

Gain on sale of equity investments



60



Other expenses



(5)



Loss on sale of assets and impairments



(5)


(1)

Stock compensation expense



(1)


(4)

Foreign exchange on intercompany loans






and market value adjustments on forwards


(1)


2

Interest expense



(20)


(22)

Interest income



7


8

Income before income taxes



$ 135


$   42





DANA HOLDING CORPORATION






Reconciliation of Segment and Adjusted EBITDA to  



Income Before Income Taxes (Unaudited)





For the Nine Months Ended September 30,  2011 and 2010









(In millions)



Nine Months Ended




September 30,




2011


2010

Segment EBITDA



$ 602


$ 445

Corporate expense and other items, net



(20)


(35)

Adjusted EBITDA



582


410

Depreciation



(163)


(180)

Amortization of intangibles



(68)


(57)

Restructuring



(65)


(60)

Loss on extinguishment of debt



(53)


(7)

Gain on sale of equity investments



60



Other expenses



(9)



Loss on sale of assets and impairments



(6)


(7)

Stock compensation expense



(5)


(9)

Foreign exchange on intercompany loans,






Venezuelan currency devaluation and






market value adjustments on forwards



(3)


(13)

Interest expense



(59)


(68)

Interest income



20


21

Income before income taxes



$ 231


$   30





DANA HOLDING CORPORATION






Diluted Adjusted EPS






For the Three Months Ended September 30, 2011 and 2010








(In millions except per share amounts)









Three Months Ended




September 30,




2011


2010






Net income attributable to parent company


$  110


$    46

Restructuring charges (1)



23


11

Amortization of intangibles (1)



20


17

Non-recurring items (1)



(56)


(15)

Adjusted net income



$    97


$    59













Diluted shares - as reported



215


212

Adjusted diluted shares



215


212













Diluted adjusted EPS



$ 0.45


$ 0.28







(1) Amounts are net of associated tax effect.









DANA HOLDING CORPORATION






Diluted Adjusted EPS






For the Nine Months Ended September 30, 2011 and 2010









(In millions except per share amounts)









Nine Months
Ended




September 30,




2011


2010






Net income (loss) attributable to parent company


$  148


$    24

Restructuring charges (1)



61


54

Amortization of intangibles (1)



58


51

Non-recurring items (1)





(6)

Adjusted net income



$  267


$  123













Diluted shares - as reported



215


140

Potentially dilutive shares





6

Conversion of preferred stock





66

Adjusted diluted shares



215


212













Diluted adjusted EPS



$ 1.24


$ 0.58







(1) Amounts are net of associated tax effect.








SOURCE Dana Holding Corporation

For further information: Investor Contact - Lillian Etzkorn, +1-419-887-5160, Media Contact - Chuck Hartlage, +1-419-887-5123


print Print   email Email      rss RSS