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. Companies : Dana
Dana Corporation recorded a net loss of $1,272 million in Third-Quarter 2005 Jan. 17, 2006 -- Dana Corporation (NYSE: DCN) 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. 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." Dana Corporation, GETRAG GmbH & Cie KG to Jointly Develop Electronic Torque- Transfer Devices Jan. 11, 2006 -- Dana Corporation (NYSE: DCN) and GETRAG GmbH & Cie KG announced today that they have expanded their strategic alliance to jointly develop electronically controlled limited- slip differentials and electronic torque couplings. Under terms of the agreement, engineers from Dana and GETRAG will be working in both the United States and Europe to develop advanced torque- transfer products. The electronically activated devices will be used in Dana axles and GETRAG axles, transaxles, and power-transfer units, which in turn will be applied in both light-truck and passenger-car platforms. Dana announced in 2000 that it had acquired a 30-percent equity stake in GETRAG GmbH & Cie KG, the parent company of the GETRAG group of companies, and a 49-percent share of GETRAG's North American operations. In 2004 the two companies bought a 60-percent share of Volvo Car Corporation's operations in Koping, Sweden, to form GETRAG All Wheel Drive AB. Dana Corporation to Consolidate Production in Thermal Products Group Dec. 14, 2006 -- Dana Corporation (NYSE: DCN) today announced it will consolidate the North American operations of its Thermal Products group by mid 2006 to reduce operating and overhead costs and strengthen competitiveness. Dana facilities in Danville, Ind.; Sheffield, Pa.; and Burlington, Ont. with a total of 200 people will be closed. Production from these locations will be moved to Dana plants in St. Clair, Mich., and Cambridge, Ont. The restructuring charges related to these closures are expected to be immaterial. Some people from Danville, Sheffield, and Burlington will be placed at other Dana facilities, and the company will make employment counseling, unemployment benefits, skills training, and outplacement support available to the other affected employees. Dana Corporation Reports Fourth-Quarter and Full-Year Results Aftermarket Divestiture and Related Actions Improve Balance Sheet, Cost Structure Toledo, Ohio -- Feb 23, 2005 -Dana Corporation (NYSE: DCN) today announced its fourth-quarter and full-year 2004 results. During the fourth quarter, Dana took a series of actions aimed at strengthening its long-term competitiveness and repositioning the company to better serve its global original equipment customers. These actions, which together resulted in unusual charges of $195 million after tax, included: Completing the divestiture of the automotive aftermarket businesses previously held for sale; Announcing two facility closures and other manufacturing realignments; and Repurchasing approximately $900 million of long-term debt. “The aftermarket divestiture, our realignment actions, and the debt repurchase significantly improved our balance sheet and financial flexibility. Our efforts were recognized by two leading credit agencies, which returned us to investment grade in December,” said Dana Chairman and CEO Mike Burns. “In addition, year-over-year sales and net income, excluding unusual items, were both up significantly despite a challenging operating environment. “Certainly, we’re not yet where we’d like to be. But the improvements to our balance sheet and operational performance were important steps in the continuing transformation of Dana, and I am proud of what our people accomplished in 2004.” Dana Announces Addition of Vice President of Global Logistics Toledo, Ohio - Feb 28, 2005 - Dana Corporation (NYSE: DCN) today announced that George D. Wilkinson has joined the company as vice president of Global Logistics. Mr. Wilkinson will be responsible for developing, implementing, and managing Dana’s global logistics strategy. Within this context, he will maintain authority and responsibility for all transportation within Dana Corporation. Additionally George will develop a transportation function, which will be designed to more effectively and efficiently manage all aspects of the company's global transportation. George brings extensive knowledge and a strong track record to this critical new position,” said Paul Miller, vice president of Purchasing for Dana Corporation. “We look forward to integrating his extensive logistics and business expertise with our existing organization and working collectively to advance Dana’s status as an increasingly lean, customer-focused organization.” Dana Corporation and Dongfeng Motor Co., Ltd. Sign Joint-Venture Agreement to Produce Commercial Vehicle Axles in China Toledo, Ohio - Mar 10, 2005 - Dana Corporation (NYSE: DCN) and Dongfeng Motor Co. Ltd. today signed an agreement to form a joint-venture company to develop and produce commercial vehicle axles in China. The 50/50 joint venture will be called Dongfeng Dana Axle Co. Ltd. Driveshafts and other products for commercial vehicles may be added to the joint venture following its establishment.
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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 every year. A leading supplier of axle,
driveshaft, engine, frame, chassis, and transmission technologies, Dana
employs 46,000 people in 28 countries. The company is based in Toledo,
Ohio, and reported sales of $9.1 billion in 2004.