Dana Holding Corporation Reports First-Quarter 2009 Results, Announces Debt Repurchase Program

Market weakness drives 47-percent sales decline compared to first quarter of 2008

Operations aggressively right-sizing to new production levels

2009 plan on track despite weak global markets

TOLEDO, Ohio, May 7 Dana Holding Corporation today announced its first-quarter 2009 results.

 
  First-quarter highlights included:

  --  Sales of $1,216 million, a 47-percent decrease compared with 2008,
      primarily related to lower vehicle production across all market
      segments.
  --  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.

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

Dana will discuss its first-quarter results in a conference call at 10:30 a.m. EDT 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. # 95720792). International locations should call 1-706-758-0054 (Conference I.D. # 95720792). Please ask for the Dana Holding Corporation Financial Webcast and Conference Call. Phone registration will be available beginning at 10 a.m. EDT. 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 95720792. A webcast replay will also be available after 5 p.m. today, and may be accessed via the Dana Investor Web site.