Dana Corporation Announces First-Quarter Results
TOLEDO, Ohio, April 18 Dana Corporation today
announced that its sales for the first quarter of 2001 were $2.7 billion, down
from $3.5 billion for the same period last year. Operating earnings per share
totaled one cent on a diluted basis, exceeding consensus estimates.
The company also reported net non-recurring charges of $28 million
(19 cents per share). These charges included a one-time loss associated with
the sale of the Mr. Gasket aftermarket operations, as well as charges related
to facility closures and permanent workforce reductions. The resulting net
loss reported for the quarter was $27 million (18 cents per share). This
compares to net income of $245 million in the first quarter of last year,
which included a net non-recurring gain of $85 million.
"As we expected, the first quarter was very much like the fourth quarter
of 2000. We were 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 some of
our largest customers and continued weakness in the aftermarket and the North
American heavy-truck market," said Dana Chairman and CEO Joe Magliochetti.
"With the lower light-truck production levels affecting certain vehicles
with significant Dana content, the profitability of our Automotive Systems
Group declined from the fourth quarter. This was largely offset by the
effects of our on-going cost-reduction initiatives, as well as improved
performance in other business units.
"We are particularly proud that our Commercial Vehicle Systems group,
formerly known as the Heavy Truck Group, was profitable in a still depressed
heavy-truck market. During the quarter, this group completed a substantial
streamlining of its operations. This is consistent with our objective to
right-size all of our businesses to correspond with lower production
projections," Mr. Magliochetti said.
"Looking ahead to the second quarter, we anticipate that our original
equipment markets will continue to be erratic as the OEMs work to balance
their production and inventories with demand. We also do not see any signs of
near-term recovery in the aftermarket. Consequently, it is imperative that we
continue to focus on appropriately scaling all of our operations and better
leveraging our assets," he added.
Dana Chief Financial Officer Bob Richter said, "In addition to these
operational measures, we continued our focus on managing for cash. We also
significantly strengthened our liquidity. We established a five-year,
$400 million accounts receivable securitization program to provide an
additional, cost-effective source of financing. We also increased the size of
our revolving credit facilities by $250 million to a total of $1.25 billion.
These actions greatly enhance our financial flexibility going forward."
(in millions, except
per share amounts)
Unaudited
Three Months Ended March 31
2000 2001
Sales $3,468 $2,731
Net Income(Loss) 245 (27)
Net Income(Loss)
Per Common Share- Shares
Income Outstanding EPS
Basic $1.55 $(0.18) (26,956,390.49) 147,915,156 $(0.182242)
Diluted $1.54 $(0.18) (26,956,390.49) 148,757,269 $(0.181211)
From Dana Corp. Common Stock Report
Average Shares
Outstanding -
For Basic EPS 158 148
For Diluted EPS 159 149
Dana Corporation
Statement of Income (Unaudited)
March 31, 2001
(in millions, except per share amounts)
Three Months Ended March 31
2000 2001
Net sales $3,468 $2,731
Revenue from lease financing
and other income 217 22
Total 3,685 2,753
Costs and expenses
Cost of sales 2,902 2,443
Selling, general and
administrative expenses 299 261
Restructuring and
integration charges 19 22
Interest expense 79 85
Total 3,299 2,811
Income (loss) before income taxes 386 (58)
Estimated taxes on income (148) 24
Minority interest (4) (2)
Equity in earnings
of affiliates 11 9
Net income (loss) $245 $(27)
Net income (loss) per common share -
Basic $1.55 $(0.18)
Diluted $1.54 $(0.18)
Average shares outstanding -
For Basic EPS 158 148
For Diluted EPS 159 149
Dana Corporation
Condensed Balance Sheet (Unaudited)
March 31, 2001
(in millions)
December 31 March 31
Assets 2000 2001
Current assets
Cash and marketable securities $179 $150
Accounts receivable
Trade 1,548 1,744
Other 318 376
Inventories 1,564 1,445
Other current assets 714 568
Total current assets 4,323 4,283
Property, plant and equipment, net 3,509 3,388
Investment in leases 1,037 1,063
Investments and other assets 2,367 2,338
Total assets $11,236 $11,072
Liabilities and Shareholders'
Equity
Accounts payable and other
current liabilities $2,386 $2,406
Notes payable 1,945 2,111
Total current liabilities 4,331 4,517
Long-term debt 2,649 2,422
Deferred employee benefits
and other noncurrent liabilities 1,507 1,573
Minority interest 121 121
Shareholders' equity 2,628 2,439
Total liabilities and
shareholders' equity $11,236 $11,072
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
March 31, 2001
(in millions)
Three Months Ended March 31
2000 2001
Net income (loss) $245 $(27)
Depreciation and amortization 132 136
Loss (gain) on divestitures (97) 12
Working capital change (138) (65)
Other (37) 56
Net cash from operating activities 105 112
Purchases of property, plant and
equipment (166) (124)
Purchases of assets to be leased (12) (30)
Payments received on leases 14 10
Net loans to customers (6) 60
Acquisitions (205) -
Divestitures 524 15
Other 31 20
Net cash flows - investing activities 180 (49)
Net change in short-term debt 237 96
Proceeds from long-term debt - 43
Payments on long-term debt (233) (186)
Dividends paid (48) (46)
Shares repurchased (250) -
Other 2 1
Net cash flows - financing activities (292) (92)
Net change in cash and cash equivalents (7) (29)
Cash and cash equivalents - beginning of period 111 179
Cash and cash equivalents - end of period $104 $150
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Statement of Income (Unaudited)
March 31, 2001
(in millions)
Three Months Ended March 31
2000 2001
Net sales $3,468 $2,731
Other income (expense) 174 (13)
Total 3,642 2,718
Costs and expenses
Cost of sales 2,917 2,461
Selling, general and
administrative expenses 275 237
Restructuring and
integration charges 19 22
Interest expense 55 55
Total 3,266 2,775
Income (loss) before income taxes 376 (57)
Estimated taxes on income (146) 23
Minority interest (4) (2)
Equity in earnings
of affiliates 19 9
Net income (loss) $245 $(27)
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Balance Sheet (Unaudited)
March 31, 2001
(in millions)
December 31 March 31
Assets 2000 2001
Current assets
Cash and marketable securities $149 $136
Accounts receivable
Trade 1,505 1,745
Other 318 282
Inventories 1,564 1,445
Other current assets 535 517
Total current assets 4,071 4,125
Property, plant and equipment, net 3,069 2,954
Investments and other assets 2,026 1,979
Total assets $9,166 $9,058
Liabilities and Shareholders' Equity
Accounts payable and other
current liabilities $2,383 $2,349
Notes payable 1,307 1,534
Total current liabilities 3,690 3,883
Long-term debt 1,574 1,369
Deferred employee benefits
and other noncurrent liabilities 1,155 1,248
Minority interest 119 119
Shareholders' equity 2,628 2,439
Total liabilities and
shareholders' equity $9,166 $9,058
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Cash Flows (Unaudited)
March 31, 2001
(in millions)
Three Months Ended March 31
2000 2001
Net income (loss) $245 $(27)
Depreciation and amortization 110 111
Loss (gain) on divestitures (97) 12
Working capital change (118) (74)
Other (59) 30
Net cash from operating activities 81 52
Purchases of property, plant and
equipment (116) (74)
Acquisitions (205) -
Divestitures 524 15
Other 30 7
Net cash flows - investing activities 233 (52)
Net change in short-term debt 162 183
Proceeds from long-term debt - 10
Payments on long-term debt (181) (162)
Dividends paid (48) (46)
Shares repurchased (250) -
Other 2 2
Net cash flows - financing activities (315) (13)
Net change in cash and cash equivalents (1) (13)
Cash and cash equivalents - beginning of period 101 149
Cash and cash equivalents - end of period $100 $136
Dana Corporation
Quarterly Financial Information
Q1 - 2001 (Unaudited)
(in millions)
Sales EBIT Operating PAT
00 01 00 01 00 01
Automotive Systems Group $1,230 $972 $133 $55 $85 $39
Automotive Aftermarket Group 733 637 59 (14) 36 (9)
Commercial Vehicle Systems 514 319 57 9 35 5
Engine Systems Group 381 328 30 13 19 9
Fluid Systems Group 313 282 35 23 21 14
Off-Highway Systems Group 230 177 21 12 13 7
Dana Commercial Credit 12 7
Other 67 16 (54) (54) (61) (71)
Total Operations 3,468 2,731 281 44 160 1
Restructuring and
nonrecurring items - - 146 (46) 85 (28)
Consolidated $3,468 $2,731 $427 $(2) $245 $(27)
North America $2,717 $2,034 $306 $76 $188 $43
Europe 543 489 31 21 19 19
South America 128 127 2 2 2 (4)
Asia Pacific 80 81 1 1 1 1
Dana Commercial Credit - - - - 12 7
Other - - (59) (56) (62) (65)
Total Operations 3,468 2,731 281 44 160 1
Restructuring and
nonrecurring items - - 146 (46) 85 (28)
Consolidated $3,468 $2,731 $427 $(2) $245 $(27)
See Note 13 to Dana's 2000 Annual Report for further information
(http://WWW.Dana.Com)
Dana Corporation
Quarterly Financial Information
Q1 - 2001 (Unaudited)
(in millions)
Net Profit Net Assets
00 01 00 01
Automotive Systems Group $64 $16 $1,913 $2,001
Automotive Aftermarket Group 21 (26) 2,022 1,741
Commercial Vehicle Systems 25 (3) 658 507
Engine Systems Group 13 2 1,185 1,088
Fluid Systems Group 16 8 744 657
Off-Highway Systems Group 9 4 537 479
Dana Commercial Credit 12 7 156 173
Other - (7) 37 41
Total Operations 160 1 7,252 6,687
Restructuring and
nonrecurring items 85 (28) - -
Consolidated $245 $(27) $7,252 $6,687
North America $141 $(3) $5,111 $4,506
Europe 8 7 1,419 1,485
South America - (7) 533 413
Asia Pacific (2) (2) 131 162
Dana Commercial Credit 12 7 156 173
Other 1 (1) (98) (52)
Total Operations 160 1 7,252 6,687
Restructuring and
nonrecurring items 85 (28) - -
Consolidated $245 $(27) $7,252 $6,687
