Dana Corporation Announces Year-End Results
TOLEDO, Ohio, Feb. 13 Dana Corporation today
announced consolidated sales of $12.3 billion for the year ended Dec. 31,
2000, down 6 percent from 1999. Operating income for the year was $377
million, or $2.46 per share. After net non-recurring charges of $43 million,
reported net income for the year was $334 million, or $2.18 per share on a
diluted basis. In 1999, operating income totaled $678 million ($4.07 per
share) and reported net income was $513 million ($3.08 per share) after non-
recurring charges.
Sales for the fourth quarter of 2000 were $2.7 billion, down from
$3.2 billion for the same period last year. Operating earnings were
$2 million, or one cent per share on a diluted basis. The company also
reported net non-recurring charges of $86 million (58 cents per share),
compared to $144 million (87 cents per share) for the quarter in 1999.
The fourth-quarter charges include a portion of the previously announced
charge recorded by the company's 49-percent-owned Venezuelan affiliate,
provisions for additional downsizing and plant closures, integration expenses,
and costs associated with exiting several lines of business. As a result,
Dana reported a net loss of $84 million (57 cents per share) in the fourth
quarter, compared to break-even results during the same period in 1999.
Dana's results during the fourth quarter continued to be impacted by a
number of broad issues that affected the industry as a whole. These included
irregular and reduced production schedules for light trucks and sport utility
vehicles manufactured by several of Dana's largest customers, further
deterioration in the U.S. heavy truck market, continued aftermarket softness,
and weakness of the Euro.
"While these are the same factors that affected us in the third quarter,
the severity of production cuts and their impact on Dana were much greater
during the fourth quarter," said Dana Chairman and CEO Joe Magliochetti.
"Despite the convergence of so many negative factors impacting the markets
that we serve, we will not allow ourselves to accept the kind of financial
results we saw this quarter. We have taken and will continue to take decisive
actions to better position the company for the challenges we are facing in the
near term."
Recent actions taken by the company include:
- Workforce reductions totaling nearly 10,000 people;
- Closure of 11 facilities worldwide;
- Reduced capital spending except for new product support;
- Intensified efforts to reduce working capital expenditures;
- Consolidation of operations; and
- Aggressive pursuit of supplier cost reductions via e-business
initiatives.
"We've talked a lot about our transformation strategy to strengthen Dana
for the longer term," Mr. Magliochetti said. He noted that this involves:
- Focusing on core businesses that meet financial and strategic goals;
- Improving capital efficiency;
- Enhancing technology and expanding proprietary products;
- Rationalizing underperforming assets; and
- Outsourcing low-value commodities and sub-assemblies.
"While we are intensely focused on the near-term actions needed during
these challenging times, we must also seize the opportunity presented by these
conditions to quicken the pace of our transformation for the future," he said.
Dana will hold a conference call at 9 a.m. (EST) today to discuss its 2000
results. The call may be accessed via Dana's website ( http://www.dana.com ), where
it will be accompanied by a slide presentation, or by dialing (800) 275-3210.
Please dial into the conference 15 minutes prior to the call. A recording of
this conference call will be available after 1 p.m. (EST) today. To access
this recording, please dial (800) 537-8823.
Certain statements contained herein constitute "forward-looking"
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements involve assumptions, uncertainties, and risks; and
Dana's actual future results, performance, or achievements may differ
materially from those expressed or implied in these statements. Among the
factors that could affect Dana's actual results are the ability of its
vehicular customers and suppliers to achieve projected sales and production
levels, the cyclical nature of the vehicular industry, international economic
conditions, and the success of the company's recent short-term actions, as
well as its longer term transformation strategy. Additional factors are
discussed in Dana's public filings with the Securities and Exchange
Commission. Dana does not undertake to update any forward-looking statements
contained herein.
Dana Corporation is one of the world's largest suppliers to vehicle
manufacturers and their related aftermarkets. Founded in 1904 and based in
Toledo, Ohio, the company operates some 300 major facilities and employs more
than 75,000 people in 36 countries. The company reported sales of
$12.3 billion in 2000. Dana's Internet address is http://www.dana.com .
(in millions, except per share amounts)
Unaudited
Three Months Ended December 31
1999 2000
Sales $3,243 $2,688
Net Income (Loss) * (84)
Net Income (Loss) Per Common Share -
Basic * $(0.57)
Diluted * $(0.57)
Average Shares Outstanding -
For Basic EPS 165 148
For Diluted EPS 166 149
Audited
Year Ended December 31
1999 2000
Sales $13,159 $12,317
Net Income 513 334
Net Income Per Common Share -
Basic $3.10 $2.20
Diluted $3.08 $2.18
Average Shares Outstanding -
For Basic EPS 165 152
For Diluted EPS 166 153
Dana Corporation
Statement of Income (Unaudited)
December 31, 2000
(in millions, except per share amounts)
* Amount is less than $.5 and per share amounts are less than one-half
cent.
Three Months Ended December 31
1999 2000
Net sales $3,243 $2,688
Revenue from lease financing and other income 75 67
Total 3,318 2,755
Costs and expenses
Cost of sales 2,788 2,438
Selling, general and administrative expenses 317 287
Restructuring and integration charges 151 68
Interest expense 72 85
Total 3,328 2,878
Income before income taxes (10) (123)
Estimated taxes on income 15 36
Minority interest (3) (1)
Equity in earnings of affiliates (2) 4
Net income (loss) $ * $(84)
Net income (loss) per common share -
Basic * $(0.57)
Diluted * $(0.57)
Average shares outstanding -
For Basic EPS 165 148
For Diluted EPS 166 149
* Amount is less than $.5 and per share amounts are less than one-half
cent.
Dana Corporation
Statement of Income (Audited)
December 31, 2000
(in millions, except per share amounts)
Year Ended December 31
1999 2000
Net sales $13,159 $12,317
Revenue from lease financing and other income 194 374
Total 13,353 12,691
Costs and expenses
Cost of sales 10,964 10,599
Selling, general and administrative expenses 1,192 1,132
Restructuring and integration charges 181 173
Interest expense 279 323
Total 12,616 12,227
Income before income taxes 737 464
Estimated taxes on income (251) (171)
Minority interest (13) (13)
Equity in earnings of affiliates 40 54
Net income $513 $334
Net income per common share -
Basic $3.10 $2.20
Diluted $3.08 $2.18
Average shares outstanding -
For Basic EPS 165 152
For Diluted EPS 166 153
Dana Corporation
Condensed Balance Sheet (Audited)
December 31, 2000
(in millions)
December 31 December 31
Assets 1999 2000
Current assets
Cash and marketable securities $111 $179
Accounts receivable
Trade 1,935 1,548
Other 411 318
Inventories 1,784 1,564
Other current assets 560 714
Total current assets 4,801 4,323
Property, plant and equipment, net 3,450 3,509
Investment in leases 1,014 1,037
Investments and other assets 1,858 2,367
Total assets $11,123 $11,236
Liabilities and Shareholders' Equity
Accounts payable and other current liabilities $2,470 $2,386
Notes payable 1,418 1,945
Total current liabilities 3,888 4,331
Long-term debt 2,732 2,649
Deferred employee benefits and other
noncurrent liabilities 1,398 1,507
Minority interest 148 121
Shareholders' equity 2,957 2,628
Total liabilities and shareholders' equity $11,123 $11,236
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
December 31, 2000
(in millions)
Three Months Ended December 31
1999 2000
Net income (loss) $- $(84)
Depreciation and amortization 127 133
Loss (gain) on divestitures (5) 4
Working capital change 58 477
Other 126 29
Net cash from operating activities 306 559
Purchases of property, plant and equipment (245) (198)
Purchases of assets to be leased (162) 51
Payments received on leases 49 20
Net loans to customers 33 65
Acquisitions (6) (232)
Divestitures 36 9
Other (3) (92)
Net cash flows - investing activities (298) (377)
Net change in short-term debt (146) (44)
Proceeds from long-term debt 245 57
Payments on long-term debt (74) (116)
Dividends paid (52) (45)
Shares repurchased (57) -
Other 2 1
Net cash flows - financing activities (82) (147)
Net change in cash and cash equivalents (74) 35
Cash and cash equivalents - beginning of period 185 144
Cash and cash equivalents - end of period $111 $179
Dana Corporation
Condensed Statement of Cash Flows (Audited)
December 31, 2000
(in millions)
Year Ended December 31
1999 2000
Net income $513 $334
Depreciation and amortization 519 523
Gain on divestitures (5) (106)
Working capital change (464) 254
Other 45 (21)
Net cash from operating activities 608 984
Purchases of property, plant and equipment (807) (662)
Purchases of assets to be leased (480) (191)
Payments received on leases 200 146
Net loans to customers (53) (82)
Acquisitions (18) (511)
Divestitures 36 571
Other 21 (65)
Net cash flows - investing activities (1,101) (794)
Net change in short-term debt (341) 577
Proceeds from long-term debt 1,396 368
Payments on long-term debt (376) (504)
Dividends paid (206) (187)
Shares repurchased (100) (381)
Other 1 5
Net cash flows - financing activities 374 (122)
Net change in cash and cash equivalents (119) 68
Cash and cash equivalents - beginning of period 230 111
Cash and cash equivalents - end of period $111 $179
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Statement of Income (Unaudited)
December 31, 2000
(in millions)
Three Months Ended December 31
1999 2000
Net sales $3,243 $2,688
Other income 40 8
Total 3,283 2,696
Costs and expenses
Cost of sales 2,802 2,455
Selling, general and administrative expenses 276 238
Restructuring and integration charges 151 68
Interest expense 51 55
Total 3,280 2,816
Income (loss) before income taxes 3 (120)
Estimated taxes on income 1 35
Minority interest (3) (1)
Equity in earnings of affiliates (1) 2
Net income (loss) $ * $(84)
* Amount is less than $.5 and per share amounts are less than one-half
cent.
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Statement of Income (Unaudited)
December 31, 2000
(in millions)
Year Ended December 31
1999 2000
Net sales $13,159 $12,317
Other income 58 190
Total 13,217 12,507
Costs and expenses
Cost of sales 11,016 10,662
Selling, general and administrative expenses 1,074 1,007
Restructuring and integration charges 181 173
Interest expense 208 218
Total 12,479 12,060
Income before income taxes 738 447
Estimated taxes on income (273) (168)
Minority interest (13) (13)
Equity in earnings of affiliates 61 68
Net income $513 $334
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Balance Sheet (Unaudited)
December 31, 2000
(in millions)
December 31 December 31
Assets 1999 2000
Current assets
Cash and marketable securities $101 $149
Accounts receivable
Trade 1,935 1,505
Other 399 318
Inventories 1,784 1,564
Other current assets 418 535
Total current assets 4,637 4,071
Property, plant and equipment, net 3,064 3,069
Investments and other assets 1,801 2,026
Total assets $9,502 $9,166
Liabilities and Shareholders' Equity
Accounts payable and other current liabilities $2,423 $2,383
Notes payable 897 1,307
Total current liabilities 3,320 3,690
Long-term debt 1,862 1,574
Deferred employee benefits and other
noncurrent liabilities 1,216 1,155
Minority interest 147 119
Shareholders' equity 2,957 2,628
Total liabilities and shareholders' equity $9,502 $9,166
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Cash Flows (Unaudited)
December 31, 2000
(in millions)
Three Months Ended December 31
1999 2000
Net income (loss) $- $(84)
Depreciation and amortization 106 108
Loss (gain) on divestitures (5) 4
Working capital change 56 486
Other 76 12
Net cash from operating activities 233 526
Purchases of property, plant and equipment (163) (116)
Acquisitions (7) (232)
Divestitures 36 9
Other 25 6
Net cash flows - investing activities (109) (333)
Net change in short-term debt (82) (86)
Proceeds from long-term debt 15 9
Payments on long-term debt (31) (58)
Dividends paid (51) (45)
Shares repurchased (57) -
Net cash flows - financing activities (206) (180)
Net change in cash and cash equivalents (82) 13
Cash and cash equivalents - beginning of period 183 136
Cash and cash equivalents - end of period $101 $149
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Cash Flows (Unaudited)
December 31, 2000
(in millions)
Year Ended December 31
1999 2000
Net income $513 $334
Depreciation and amortization 429 427
Gain on divestitures (5) (106)
Working capital change (447) 284
Other (26) (89)
Net cash from operating activities 464 850
Purchases of property, plant and equipment (547) (434)
Acquisitions (18) (511)
Divestitures 36 571
Other 3 15
Net cash flows - investing activities (526) (359)
Net change in short-term debt (555) 424
Proceeds from long-term debt 1,017 9
Payments on long-term debt (220) (313)
Dividends paid (206) (187)
Shares repurchased (100) (381)
Other - 5
Net cash flows - financing activities (64) (443)
Net change in cash and cash equivalents (126) 48
Cash and cash equivalents - beginning of period 227 101
Cash and cash equivalents - end of period $101 $149
Dana Corporation
Quarterly Financial Information
Q4 - 2000 (Unaudited)
(in millions)
Sales EBIT Operating PAT
99 00 99 00 99 00
Automotive Systems Group $1,132 $1,042 $131 $60 $81 $47
Automotive Aftermarket Group 713 654 63 (8) 38 (5)
Heavy Truck Group 479 287 52 (5) 32 (4)
Engine Systems Group 321 285 18 8 12 6
Fluid Systems Group 313 269 31 20 19 12
Off-Highway Systems Group 193 137 9 5 6 3
Dana Commercial Credit - - - - 6 6
Other 92 14 (56) (60) (50) (63)
Total Operations 3,243 2,688 248 20 144 2
Restructuring and
nonrecurring items - - (198) (90) (144) (86)
Consolidated $3,243 $2,688 $50 $(70) $(0) $(84)
North America $2,547 $2,014 $282 $60 $171 $55
Europe 497 444 17 5 10 3
South America 132 136 5 4 (1) (5)
Asia Pacific 67 94 3 1 1 1
Dana Commercial Credit - - - - 6 7
Other - - (59) (50) (43) (59)
Total Operations 3,243 2,688 248 20 144 2
Restructuring and
nonrecurring items - - (198) (90) (144) (86)
Consolidated $3,243 $2,688 $50 $(70) $- $(84)
See Note 13 to Dana's 1999 Annual Report for further information
(http://WWW.Dana.Com)
FOR MORE INFORMATION
(http://WWW.Dana.Com) - Dial-For-Dana U.S. or Canada 800-537-8823; OH
800-472-8810
E-Mail Greg.Smietanski@Dana.com or Karen.Crawford@Dana.Com
Dana Investor Relations 419-535-4635
02/13/2001
Dana Corporation
Quarterly Financial Information
Q4 - 2000 (Unaudited)
(in millions)
Net Profit Net Assets
99 00 99 00
Automotive Systems Group $62 $25 $1,761 $2,097
Automotive Aftermarket Group 21 (22) 1,998 1,940
Heavy Truck Group 22 (11) 689 557
Engine Systems Group 7 - 1,136 1,082
Fluid Systems Group 14 7 757 673
Off-Highway Systems Group 2 - 546 438
Dana Commercial Credit 6 7 145 174
Other 10 (4) 208 19
Total Operations 144 2 7,240 6,980
Restructuring and
nonrecurring items (144) (86) - -
Consolidated $- $(84) $7,240 $6,980
North America $128 $15 $5,222 $4,730
Europe - (7) 1,267 1,542
South America (3) (8) 581 451
Asia Pacific (1) (3) 143 169
Dana Commercial Credit 6 6 145 174
Other 14 (1) (118) (86)
Total Operations 144 2 7,240 6,980
Restructuring and
nonrecurring items (144) (86) - -
Consolidated $- $(84) $7,240 $6,980
See Note 13 to Dana's 1999 Annual Report for further information
(http://WWW.Dana.Com)
FOR MORE INFORMATION
(http://WWW.Dana.Com) - Dial-For-Dana U.S. or Canada 800-537-8823; OH
800-472-8810
E-Mail Greg.Smietanski@Dana.com or Karen.Crawford@Dana.Com
Dana Investor Relations 419-535-4635
02/13/2001
Dana Corporation
Quarterly Financial Information
For Twelve Months Ending December 31, 2000 (Unaudited)
(in millions)
Operating
Sales EBIT PAT
99 00 99 00 99 00
Automotive Systems Group $4,461 $4,634 $538 $423 $343 $287
Automotive Aftermarket Group 3,039 2,850 307 125 188 77
Heavy Truck Group 1,904 1,598 208 126 127 76
Engine Systems Group 1,318 1,293 103 86 69 63
Fluid Systems Group 1,238 1,163 133 110 82 66
Off-Highway Systems Group 812 674 56 49 34 30
Dana Commercial Credit - - - - 34 35
Other 387 105 (194) (243) (199) (257)
Total Operations 13,159 12,317 1,151 676 678 377
Restructuring and
nonrecurring items - - (229) (25) (165) (43)
Consolidated $13,159 $12,317 $922 $651 $513 $334
North America $10,308 $9,449 $1,235 $804 $771 $525
Europe 2,051 1,947 99 74 57 44
South America 549 563 16 24 13 11
Asia Pacific 251 358 - 7 (1) 5
Dana Commercial Credit - - - - 34 35
Other - - (199) (233) (196) (243)
Total Operations 13,159 12,317 1,151 676 678 377
Restructuring and
nonrecurring items - - (229) (25) (165) (43)
Consolidated $13,159 $12,317 $922 $651 $513 $334
See Note 13 to Dana's 1999 Annual Report for further information
(http://WWW.Dana.Com)
FOR MORE INFORMATION
(http://WWW.Dana.Com) - Dial-For-Dana U.S. or Canada 800-537-8823; OH
800-472-8810
E-Mail Greg.Smietanski@Dana.com or Karen.Crawford@Dana.Com
Dana Investor Relations 419-535-4635
02/13/2001
Dana Corporation
Quarterly Financial Information
For Twelve Months Ending December 31, 2000 (Unaudited)
(in millions)
Net Profit Net Assets
99 00 99 00
Automotive Systems Group $271 $196 $1,761 $2,097
Automotive Aftermarket Group 127 2 1,998 1,940
Heavy Truck Group 91 41 689 557
Engine Systems Group 49 40 1,136 1,082
Fluid Systems Group 63 45 757 673
Off-Highway Systems Group 22 18 546 438
Dana Commercial Credit 34 35 145 174
Other 21 - 208 19
Total Operations 678 377 7,240 6,980
Restructuring and
nonrecurring items (165) (43) - -
Consolidated $513 $334 $7,240 $6,980
North America $612 $346 $5,222 $4,730
Europe 20 4 1,267 1,542
South America 3 - 581 451
Asia Pacific (10) (8) 143 169
Dana Commercial Credit 34 35 145 174
Other 19 - (118) (86)
Total Operations 678 377 7,240 6,980
Restructuring and
nonrecurring items (165) (43) - -
Consolidated $513 $334 $7,240 $6,980
See Note 13 to Dana's 1999 Annual Report for further information
(http://WWW.Dana.Com)
