Dana Corporation Announces Second-Quarter Results
Dana Corporation Announces Second-Quarter Results
DANA CORPORATION LOGO
Dana Corporation logo. (PRNewsFoto)[DM]
TOLEDO, OH USA 09/03/1999
TOLEDO, Ohio, July 17 Dana Corporation today
announced that its sales for the second quarter of 2001 were $2.8 billion,
down from $3.3 billion for the same period last year. Net income, excluding
non-recurring items, totaled $26 million, or 17 cents per share for the
quarter, compared with $154 million, or $1.01 per share, during the second
quarter of 2000. Net income for the quarter, including non-recurring items,
totaled $14 million, or 10 cents per share. This compares with net income of
$145 million, or 95 cents per share, in the second quarter of 2000.
Dana's six-month consolidated sales were $5.5 billion, down from
$6.8 billion over the same period last year. Net income, excluding non-
recurring items over the period, was $27 million, or 18 cents per share,
compared with $315 million, or $2.01 per share, in 2000. After net, non-
recurring charges, the company incurred a net loss of $13 million, or 8 cents
per share, during the first six months of 2001. This compares with net income
of $390 million, or $2.50 per share in 2000, which included net, non-recurring
income of $75 million, or 49 cents per share.
"The second quarter was another challenging period for our industry, which
is well below last year's strong pace," said Dana Chairman and CEO Joe
Magliochetti. "Nevertheless, we were pleased to see the improvement in our
results from the first quarter to second quarter in a number of areas.
"Despite erratic light vehicle production schedules, our largest business
unit, the Automotive Systems Group, showed a marked improvement in
profitability reflecting the success of our cost reduction actions and
workforce reductions," he said.
"Similarly, our Commercial Vehicle Systems unit grew its profits, despite
lower sales to the heavy truck market," he added. "And perhaps most
encouraging was the improved performance of our Automotive Aftermarket Group,
which is significant considering the number of challenges it has faced over
the past year.
"Looking ahead to the second half of 2001, we expect to continue
benefiting from our rightsizing efforts. However, we're less optimistic today
about the rate of recovery in the North American OE markets than we were at
the outset of the year," Mr. Magliochetti said. "Certain new vehicle
inventory levels remain high and several major customers have announced
extended summer production shutdowns. This will have a continuing impact on
the industry during the third quarter, but we are encouraged by the present
outlook for the fourth quarter."
Dana Chief Financial Officer Bob Richter said, "In addition to our cost
reduction measures, we continued our focus on managing for cash, as evidenced
by further reductions in inventory levels and continued progress in our
divestiture program."
During the second quarter, Dana divested three operations resulting in a
one-time, net after-tax charge of $8 million, or 6 cents per share. These
operations include the company's Marion, Ohio, forging facility; and the
assets of its Dallas, Texas, and Washington, Mo., Fluid Systems operations.
Yesterday, Dana completed the sale of its Chelsea Power Take-Off business
to Parker Hannifin Corporation . As a result of the sale, Dana will
record a one-time, after-tax gain of approximately $20 million, or 13 cents
per share, in the third quarter of 2001.
"As we've said previously, we will use proceeds from divestitures and
other positive cash flow to reduce debt," Mr. Richter said. "However, we will
also explore ways to better balance the maturity of our debt portfolio and
reduce our exposure to fluctuations in the euro-dollar exchange rate."
(in millions, except per share amounts)
Unaudited
Three Months Ended June 30
2000 2001
Sales $3,296 $2,768
Net Income, excluding non-
recurring items 154 26
Net Income, including non-
recurring items 145 14
Net Income Per Common Share,
excluding non-recurring items
Diluted 1.01 0.17
Net Income Per Common Share,
including non-recurring items
Basic 0.95 0.10
Diluted 0.95 0.10
Average Shares Outstanding -
For Basic EPS 152 148
For Diluted EPS 153 149
Unaudited
Six Months Ended June 30
2000 2001
Sales $6,764 $5,499
Net Income, excluding non-
recurring items 315 27
Net Income (loss), including
non-recurring items 390 (13)
Net Income Per Common Share,
excluding non-recurring items
Diluted 2.01 0.18
Net Income (loss) Per Common
Share, including non-recurring items
Basic 2.51 (0.08)
Diluted 2.50 (0.08)
Average Shares Outstanding -
For Basic EPS 155 148
For Diluted EPS 156 149
Dana Corporation
Statement of Income (Unaudited)
June 30, 2001
(in millions, except per share amounts)
Three Months Ended June 30
2000 2001
Net sales $3,296 $2,768
Revenue from lease financing
and other income 42 29
Total 3,338 2,797
Costs and expenses
Cost of sales 2,778 2,414
Selling, general and
administrative expenses 272 271
Restructuring and
integration charges 15 4
Interest expense 78 79
Total 3,143 2,768
Income before income taxes 195 29
Estimated taxes on income (68) (16)
Minority interest (4) (4)
Equity in earnings
of affiliates 22 5
Net income $145 $14
Net income per common share -
Basic $0.95 $0.10
Diluted $0.95 $0.10
Average shares outstanding -
For Basic EPS 152 148
For Diluted EPS 153 149
Dana Corporation
Statement of Income (Unaudited)
June 30, 2001
(in millions, except per share amounts)
Six Months Ended June 30
2000 2001
Net sales $6,764 $5,499
Revenue from lease financing
and other income 258 51
Total 7,022 5,550
Costs and expenses
Cost of sales 5,679 4,857
Selling, general and
administrative expenses 570 533
Restructuring and
integration charges 34 26
Interest expense 157 163
Total 6,440 5,579
Income (loss) before income
taxes 582 (29)
Estimated taxes on income (216) 7
Minority interest (9) (5)
Equity in earnings
of affiliates 33 14
Net income (loss) $390 $(13)
Net income (loss) per common share -
Basic $2.51 $(0.08)
Diluted $2.50 $(0.08)
Average shares outstanding -
For Basic EPS 155 148
For Diluted EPS 156 149
Dana Corporation
Condensed Balance Sheet (Unaudited)
June 30, 2001
(in millions)
December 31 June 30
Assets 2000 2001
Current assets
Cash and marketable
securities $179 $153
Accounts receivable
Trade 1,548 1,705
Other 318 416
Inventories 1,564 1,375
Other current assets 714 576
Total current assets 4,323 4,225
Property, plant and equipment, net 3,509 3,470
Investment in leases 1,037 1,083
Investments and other assets 2,367 2,260
Total assets $11,236 $11,038
Liabilities and Shareholders' Equity
Accounts payable and other
current liabilities $2,386 $2,453
Notes payable 1,945 2,021
Total current liabilities 4,331 4,474
Long-term debt 2,649 2,467
Deferred employee benefits
and other noncurrent liabilities 1,507 1,603
Minority interest 121 114
Shareholders' equity 2,628 2,380
Total liabilities and
shareholders' equity $11,236 $11,038
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
June 30, 2001
(in millions)
Three Months Ended June 30
2000 2001
Net income $145 $14
Depreciation and
amortization 128 135
Loss on divestitures - 8
Working capital change 12 27
Other (59) 57
Net cash from operating activities 226 241
Purchases of property,
plant and equipment (168) (114)
Purchases of assets to be
leased (59) (56)
Payments received on leases 51 9
Net loans to customers (100) 25
Acquisitions - (21)
Divestitures - 11
Other 13 92
Net cash flows - investing
activities (263) (54)
Net change in short-term debt 326 (58)
Proceeds from long-term debt 11 1
Payments on long-term debt (100) (81)
Dividends paid (48) (46)
Shares repurchased (70) -
Other 1 -
Net cash flows - financing
activities 120 (184)
Net change in cash and cash
equivalents 83 3
Cash and cash equivalents -
beginning of period 104 150
Cash and cash equivalents -
end of period $187 $153
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
June 30, 2001
(in millions)
Six Months Ended June 30
2000 2001
Net income (loss) $390 $(13)
Depreciation and
amortization 260 271
Loss (gain) on divestitures (97) 20
Working capital change (126) (38)
Other (96) 113
Net cash from operating activities 331 353
Purchases of property,
plant and equipment (334) (238)
Purchases of assets to be
leased (71) (86)
Payments received on leases 65 19
Net loans to customers (106) 85
Acquisitions (205) (21)
Divestitures 524 26
Other 44 112
Net cash flows - investing
activities (83) (103)
Net change in short-term debt 563 38
Proceeds from long-term debt 11 44
Payments on long-term debt (333) (267)
Dividends paid (96) (92)
Shares repurchased (320) -
Other 3 1
Net cash flows - financing
activities (172) (276)
Net change in cash and cash
equivalents 76 (26)
Cash and cash equivalents -
beginning of period 111 179
Cash and cash equivalents -
end of period $187 $153
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Statement of Income (Unaudited)
June 30, 2001
(in millions)
Three Months Ended June 30
2000 2001
Net sales $3,296 $2,768
Other income (expense) 6 (12)
Total 3,302 2,756
Costs and expenses
Cost of sales 2,794 2,429
Selling, general and
administrative expenses 249 245
Restructuring and
integration charges 15 4
Interest expense 52 49
Total 3,110 2,727
Income before income taxes 192 29
Estimated taxes on income (70) (17)
Minority interest (4) (3)
Equity in earnings
of affiliates 27 5
Net income $145 $14
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Statement of Income (Unaudited)
June 30, 2001
(in millions)
Six Months Ended June 30
2000 2001
Net sales $6,764 $5,499
Other income (expense) 181 (25)
Total 6,945 5,474
Costs and expenses
Cost of sales 5,710 4,890
Selling, general and
administrative expenses 524 482
Restructuring and
integration charges 34 26
Interest expense 108 104
Total 6,376 5,502
Income (loss) before income taxes 569 (28)
Estimated taxes on income (217) 6
Minority interest (8) (5)
Equity in earnings
of affiliates 46 14
Net income (loss) $390 $(13)
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Balance Sheet (Unaudited)
June 30, 2001
(in millions)
December 31 June 30
Assets 2000 2001
Current assets
Cash and marketable securities $149 $146
Accounts receivable
Trade 1,505 1,705
Other 318 362
Inventories 1,564 1,375
Other current assets 535 552
Total current assets 4,071 4,140
Property, plant and equipment, net 3,069 3,039
Investments and other assets 2,026 1,933
Total assets $9,166 $9,112
Liabilities and Shareholders' Equity
Accounts payable and other
current liabilities $2,383 $2,388
Notes payable 1,307 1,542
Total current liabilities 3,690 3,930
Long-term debt 1,574 1,428
Deferred employee benefits
and other noncurrent liabilities 1,155 1,262
Minority interest 119 112
Shareholders' equity 2,628 2,380
Total liabilities and
shareholders' equity $9,166 $9,112
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Cash Flows (Unaudited)
June 30, 2001
(in millions)
Three Months Ended June 30
2000 2001
Net income $145 $14
Depreciation and amortization 104 109
Loss on divestitures - 8
Working capital change 21 19
Other (38) 20
Net cash from operating
activities 232 170
Purchases of property,
plant and equipment (121) (90)
Acquisitions - (21)
Divestitures - 11
Other 3 14
Net cash flows - investing
activities (118) (86)
Net change in short-term debt 133 (7)
Proceeds from long-term
debt
Payments on long-term debt (61) (20)
Dividends paid (48) (46)
Shares repurchased (70)
Other 1 (1)
Net cash flows - financing activities (45) (74)
Net change in cash and cash
equivalents 69 10
Cash and cash equivalents -
beginning of period 100 136
Cash and cash equivalents -
end of period $169 $146
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Cash Flows (Unaudited)
June 30, 2001
(in millions)
Six Months Ended June 30
2000 2001
Net income (loss) $390 $(13)
Depreciation and
amortization 214 219
Loss (gain) on divestitures (97) 20
Working capital change (98) (55)
Other (96) 51
Net cash from operating
activities 313 222
Purchases of property,
plant and equipment (237) (164)
Acquisitions (205) (21)
Divestitures 524 26
Other 33 21
Net cash flows - investing
activities 115 (138)
Net change in short-term debt 295 176
Proceeds from long-term debt - 10
Payments on long-term debt (242) (182)
Dividends paid (96) (92)
Shares repurchased (320) -
Other 3 1
Net cash flows - financing
activities (360) (87)
Net change in cash and cash
equivalents 68 (3)
Cash and cash equivalents -
beginning of period 101 149
Cash and cash equivalents -
end of period $169 $146
Dana Corporation
Quarterly Financial Information
Q2 - 2001 (Unaudited)
(in millions)
Sales EBIT Operating PAT
00 01 00 01 00 01
Automotive Systems Group $1,209 $1,022 $141 $81 $93 $51
Automotive Aftermarket Group 720 673 38 16 24 10
Commercial Vehicle Systems 452 300 47 12 29 7
Engine Systems Group 367 310 35 8 25 6
Fluid Systems Group 315 280 36 25 22 15
Off-Highway Systems Group 220 165 20 8 12 5
Dana Commercial Credit - - - - 9 6
Other 13 18 (61) (57) (60) (74)
Total Operations 3,296 2,768 256 93 154 26
Restructuring and
nonrecurring items - - (15) (17) (9) (12)
Consolidated $3,296 $2,768 $241 $76 $145 $14
North America $2,552 $2,114 $282 $128 $181 $77
Europe 520 439 27 16 16 9
South America 141 133 8 6 7 (1)
Asia Pacific 83 82 2 (1) 1 -
Dana Commercial Credit - - - - 9 6
Other - - (63) (56) (60) (65)
Total Operations 3,296 2,768 256 93 154 26
Restructuring and
nonrecurring items - - (15) (17) (9) (12)
Consolidated $3,296 $2,768 $241 $76 $145 $14
See Note 13 to Dana's 2000 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
Dana Corporation
Quarterly Financial Information
Q2 - 2001 (Unaudited)
(in millions)
Net Profit Net Assets
00 01 00 01
Automotive Systems Group $71 $30 $1,913 $1,919
Automotive Aftermarket Group 6 (6) 2,023 1,728
Commercial Vehicle Systems 19 (1) 626 458
Engine Systems Group 18 - 1,164 1,070
Fluid Systems Group 17 9 724 635
Off-Highway Systems Group 8 2 524 470
Dana Commercial Credit 9 6 162 180
Other 6 (14) 112 188
Total Operations 154 26 7,248 6,648
Restructuring and
nonrecurring items (9) (12) - -
Consolidated $145 $14 $7,248 $6,648
North America $136 $34 $5,037 $4,392
Europe 6 - 1,421 1,434
South America 4 (4) 535 533
Asia Pacific (2) (3) 129 165
Dana Commercial Credit 9 6 162 180
Other 1 (7) (36) (56)
Total Operations 154 26 7,248 6,648
Restructuring and
nonrecurring items (9) (12) - -
Consolidated $145 $14 $7,248 $6,648
See Note 13 to Dana's 2000 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
Dana Corporation
Quarterly Financial Information
For Six Months Ended June 30, 2001 (Unaudited)
(in millions)
Sales EBIT Operating PAT
00 01 00 01 00 01
Automotive Systems Group $2,439 $1,993 $274 $136 $179 $90
Automotive Aftermarket Group 1,453 1,310 97 2 60 1
Commercial Vehicle Systems 966 619 104 21 63 12
Engine Systems Group 748 638 65 21 44 16
Fluid Systems Group 628 563 71 48 44 29
Off-Highway Systems Group 450 342 41 21 25 13
Dana Commercial Credit - - - - 21 12
Other 80 34 (114) (112) (121) (146)
Total Operations 6,764 5,499 538 137 315 27
Restructuring and
nonrecurring items - - 131 (63) 75 (40)
Consolidated $6,764 $5,499 $669 $74 $390 $(13)
North America $5,270 $4,148 $588 $204 $369 $120
Europe 1,063 928 58 36 35 28
South America 269 260 10 7 8 (5)
Asia Pacific 162 163 3 1 2 -
Dana Commercial Credit - - - - 21 12
Other - - (121) (111) (120) (128)
Total Operations 6,764 5,499 538 137 315 27
Restructuring and
nonrecurring items - - 131 (63) 75 (40)
Consolidated $6,764 $5,499 $669 $74 $390 $(13)
See Note 13 to Dana's 2000 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
Dana Corporation
Quarterly Financial Information
For Six Months Ended June 30, 2001 (Unaudited)
(in millions)
Net Profit Net Assets
00 01 00 01
Automotive Systems Group $135 $47 $1,913 $1,919
Automotive Aftermarket Group 27 (32) 2,023 1,728
Commercial Vehicle Systems 44 (4) 626 458
Engine Systems Group 31 2 1,164 1,070
Fluid Systems Group 33 17 724 635
Off-Highway Systems Group 17 6 524 470
Dana Commercial Credit 21 12 162 180
Other 7 (21) 112 188
Total Operations 315 27 7,248 6,648
Restructuring and
nonrecurring items 75 (40) - -
Consolidated $390 $(13) $7,248 $6,648
North America $277 $32 $5,037 $4,392
Europe 15 7 1,421 1,434
South America 4 (11) 535 533
Asia Pacific (4) (5) 129 165
Dana Commercial Credit 21 12 162 180
Other 2 (8) (36) (56)
Total Operations 315 27 7,248 6,648
Restructuring and
nonrecurring items 75 (40) - -
Consolidated $390 $(13) $7,248 $6,648
See Note 13 to Dana's 2000 Annual Report for further information
( http://WWW.Dana.Com )