7th
May 2009 - Dana Reports First
Quarter 2009 Results - Announces Debt Repurchase Program
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Market
weakness drives 47-percent sales decline compared to first
quarter of 2008 |
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Operations aggressively right-sizing to new production
levels |
|
▫ |
2009
plan on track despite weak global markets |
Dana Holding Corporation
has announced its first-quarter 2009 results.
First-quarter highlights
included:
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Sales of
$1,216 million, a 47-percent decrease
compared with 2008, primarily related to lower vehicle
production across all market segments. |
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Net loss of
$160 million, compared with first-quarter
2008 net income of
$663 million. The 2008 results included a
one-time gain of
$754 million after taxes, related to
emergence and adoption of fresh start accounting. Excluding
the one-time gain, the comparable first-quarter 2008 net
loss was
$91 million. |
| ▫ |
Earnings before
interest, taxes, depreciation, amortization, and
restructuring (EBITDA) of
$16 million, compared with
$134 million in 2008. The negative impacts
associated with volume declines were partially offset by
improved operational performance and pricing. |
| ▫ |
A cash balance
of
$549 million and total liquidity of
$687 million at
March 31, 2009. Net debt was
$679 million. |
Declining Global
Markets Weaken Results
"Our first-quarter
results were hit hard by the continued global recession," said Dana
Chairman & CEO John Devine. "Despite this backdrop, we
are making good progress on improving our business through cost
reductions, right-sizing our operations, and improving margins and
working capital. During the first quarter, we reduced our global
workforce by nearly 5,000 employees and reduced fixed costs, achieving
total cost reductions of approximately $300 million.
"These efforts have
helped preserve adequate liquidity," Devine added. "At the same time, we
also are securing profitable new business with global customers, which
will benefit Dana moving forward."
The effects of the
current economic downturn continued during the first quarter of 2009.
First-quarter North American light vehicle production decreased by 51
percent compared with the same period last year. Outside North
America, light vehicle production declined by 34 percent.
Quarterly North American production of Class 8 trucks was down 40
percent and production of medium-duty trucks declined by 44 percent
compared with the same period one year ago. Dana's off-highway sales
decreased by 47 percent globally compared with the first quarter of
2008.
Dana Initiates Debt
Repurchase Program
Dana also announced today
that it is initiating a Dutch auction tender program to repurchase up to
10 percent of the existing $1.26 billion under its Term
Loan Facility. The company anticipates that the repurchase activity
under this program will be completed later this month.
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
Toledo, Ohio, the company employs approximately 24,000
people in 26 countries and reported 2008 sales of $8.1 billion.
Source:
Dana Corporation Press Release