Dana Corporation Reports Third-Quarter Earnings
TOLEDO, Ohio, Oct. 20, 2004 -- Dana Corporation today announced third-quarter sales of $2.1 billion, compared to $1.9 billion during the same period last year. Net income for the quarter totaled $40 million, or 27 cents per share, compared to $61 million, or 41 cents per share, for the period in 2003.
Net unusual charges for the quarter totaled $20 million. This amount includes net gains resulting from the sale of Dana's interest in certain assets and technology to a joint venture with the Knorr-Bremse Group and the company's continued program of divesting assets of its Dana Credit Corporation (DCC) operation. These gains were more than offset by charges primarily associated with the sale of Dana's automotive aftermarket businesses, including the reversal of an anticipated tax benefit of $20 million which was recognized in the second quarter of 2004. Based on our current expectations of the effect of the transaction, which is now anticipated to close in November, recognition of this tax benefit is no longer warranted.
Excluding unusual items, third-quarter 2004 net income was $60 million, or 40 cents per share, compared to $43 million, or 29 cents per share for the period last year. Third-quarter 2004 results, however, included the impact from several positive tax developments, including the adjustment of the company's effective tax rate for the year to 31 percent. The reduction in the effective rate reflects, among other items, credits for research and development costs. In addition, a tax benefit of $24 million was recorded to recognize the utilization of capital loss carryforwards related to the settlement of certain issues with tax authorities, as well as adjustments associated with the finalization of the prior-year's tax returns.
"Setting aside taxes, it was an otherwise disappointing quarter, largely because of the increasing cost of raw materials," said Dana Chairman and CEO Mike Burns. "The increase in steel costs alone totaled $22 million after tax, net of recoveries from our customers.
"We had expected that the bottom-line impact of the commodity price increases would be offset by the stronger performance in our heavy-vehicle business and continuing cost-reduction efforts," he added. "But, the magnitude of the raw material increases, coupled with a decrease in light- vehicle production volumes, hit us harder than expected."
Nine-Month Results
Dana's nine-month consolidated sales were $6.8 billion, up from $5.9 billion during the same period last year. Net income during the first three quarters of 2004 was $215 million, or $1.43 per share, including $15 million in unusual net gains. This compares to net income of $154 million, or $1.04 per share, including $33 million in unusual net gains during the initial nine months of 2003.
"Looking at the year-to-date results, we were reasonably satisfied with the performance from our Heavy Vehicle Technologies and Systems Group, which benefited from a solid commercial vehicle market in North America, and strong global off-highway vehicle production," Mr. Burns said. "It was a different story in our Automotive Systems Group. Although their sales were up, about 30 percent of the sales increase resulted from currency translation and new programs in our structures group, which are only beginning to contribute to the bottom line. Additionally, the automotive group bore the brunt of the increased steel costs."
Looking Ahead
On Oct. 12, Dana revised its expectation for 2004 earnings per share, excluding unusual items, from $1.90 per share to a range of $1.60 to $1.65 per share. The full-year effect of unusual items, such as the sale of DCC assets and the divestiture of the company's automotive aftermarket businesses, cannot reasonably be quantified at this time and was excluded from this guidance.
"We believe that raw material costs will continue to adversely affect us, at least in the near term," Mr. Burns said. "As we move into 2005, however, we can expect more of an offsetting benefit from our cost reduction programs. These include the consolidation of our purchasing function, the accelerated deployment of lean manufacturing techniques, and the standardization of administrative processes throughout the company.
"At the same time, we are not solely focused on cutting costs," he said. "We are equally committed to growing our top line faster - we've added significantly to our book of new business over the last three months, the heavy-truck and off-highway markets continue to grow, and we are focused on expanding our global footprint."
Quarterly Conference Call Scheduled Today at 10 a.m.
Dana will discuss its third-quarter results in a conference call at 10 a.m. (EDT) today. The call may be accessed via Dana's web site ( http://www.dana.com/ ), where it will be accompanied by a brief slide presentation, or by dialing (800) 275-3210. Please dial into the conference five minutes prior to the call. An audio recording of this conference call will be available after 2 p.m. today. To access this recording, please dial (800) 537-8823. A webcast replay of the call will be available after 4 p.m. today and will be accessible via the Dana web site.
Dana Corporation is a global leader in the design, engineering, and manufacture of value-added products and systems for automotive, commercial, and off-highway vehicles. Delivering on a century of innovation, the company's continuing operations employ approximately 45,000 people worldwide dedicated to advancing the science of mobility. Founded in 1904 and based in Toledo, Ohio, Dana operates technology, manufacturing, and customer-service facilities in 30 countries. Sales from continuing operations totaled $7.9 billion in 2003. Dana's Internet address is: http://www.dana.com/ .
Dana Corporation
Financial Summary (Unaudited)
(in millions, except per share amounts)
Three Months Ended
September 30 Percent
2004 2003 Change
Sales $2,114 $1,880 12%
Income from continuing operations $51 $37 38%
Income (loss) from discontinued
operations (11) 24 -146%
Net income $40 $61 -34%
Income from continuing operations $51 $37 38%
Gain associated with the sale of assets
to a newly formed joint venture (13)
Net gains associated with DCC
asset sales (2) (9) -78%
Gain on repurchase of notes (9)
Restructuring charges 5
Income from continuing operations,
excluding unusual items $41 $19 116%
Income (loss) from discontinued
automotive aftermarket business $(11) $24 -146%
Adjustment of deferred tax allowance
related to aftermarket sale 20
Costs relating to sale of
aftermarket businesses 10
Income from discontinued operations,
excluding unusual items $19 $24 -21%
Diluted earnings per share:
Income from continuing operations $0.34 $0.25 36%
Income (loss) from discontinued
operations (0.07) 0.16 -144%
Net income $0.27 $0.41 -34%
Income from continuing operations,
excluding unusual items $0.27 $0.13 108%
Income from discontinued operations,
excluding unusual items 0.13 0.16 -19%
Net income, excluding unusual items 0.40 0.29 38%
Unusual items (0.13) 0.12 -208%
Net income $0.27 $0.41 -34%
Dana Corporation
Financial Summary (Unaudited)
(in millions, except per share amounts)
Nine Months Ended
September 30 Percent
2004 2003 Change
Sales $6,756 $5,868 15%
Income from continuing operations $178 $119 50%
Income from discontinued operations 37 35 6%
Net income $215 $154 40%
Income from continuing operations $178 $119 50%
Gain associated with the sale of assets
to a newly formed joint venture (13)
Net gains associated with DCC
asset sales (20) (26) -23%
Gain on repurchase of notes (9)
Restructuring charges 5
Income from continuing operations,
excluding unusual items $150 $84 79%
Income from discontinued automotive
aftermarket business $37 $43 -14%
Loss from engine management business (8)
Income from discontinued operations 37 35 6%
Loss on engine management sale 2
Costs relating to sale of
aftermarket businesses 13
Income from discontinued operations,
excluding unusual items $50 $37 35%
Diluted earnings per share:
Income from continuing operations $1.18 $0.80 48%
Income from discontinued operations 0.25 0.24 4%
Net income $1.43 $1.04 38%
Income from continuing operations,
excluding unusual items $0.99 $0.56 77%
Income from discontinued operations,
excluding unusual items 0.33 0.25 32%
Net income, excluding unusual items 1.32 0.81 63%
Unusual items 0.11 0.23 -52%
Net income $1.43 $1.04 38%
Dana Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Three Months Ended September 30
2004 2003
Net sales $2,114 $1,880
Revenue from lease financing
and other income (expense) (7) 41
2,107 1,921
Costs and expenses
Cost of sales 1,955 1,731
Selling, general and
administrative expenses 123 115
Interest expense 62 55
2,140 1,901
Income (loss) before income taxes (33) 20
Income tax benefit 81 13
Minority interest (3) (1)
Equity in earnings of affiliates 6 5
Income from continuing operations 51 37
Income (loss) from discontinued
operations (11) 24
Net income $40 $61
Basic earnings per share
Income from continuing operations $0.35 $0.25
Income (loss) from discontinued
operations (0.07) 0.16
Net income $0.28 $0.41
Diluted earnings per share
Income from continuing operations $0.34 $0.25
Income (loss) from discontinued
operations (0.07) 0.16
Net income $0.27 $0.41
Average shares outstanding -
For Basic EPS 149 148
For Diluted EPS 151 149
Dana Corporation
Condensed Statement of Income (Unaudited)
(in millions, except per share amounts)
Nine Months Ended September 30
2004 2003
Net sales $6,756 $5,868
Revenue from lease financing
and other income 32 113
6,788 5,981
Costs and expenses
Cost of sales 6,161 5,370
Selling, general and
administrative expenses 381 392
Interest expense 164 169
6,706 5,931
Income before income taxes 82 50
Income tax benefit 78 34
Minority interest (9) (4)
Equity in earnings of affiliates 27 39
Income from continuing operations 178 119
Income from discontinued operations 37 35
Net income $215 $154
Basic earnings per share
Income from continuing operations $1.20 $0.80
Income from discontinued operations 0.25 0.24
Net income $1.45 $1.04
Diluted earnings per share
Income from continuing operations $1.18 $0.80
Income from discontinued operations 0.25 0.24
Net income $1.43 $1.04
Average shares outstanding -
For Basic EPS 149 148
For Diluted EPS 151 149
Dana Corporation
Condensed Balance Sheet (Unaudited)
(in millions)
September 30 December 31
Assets 2004 2003
Current assets
Cash and cash equivalents $512 $731
Accounts receivable
Trade 1,351 1,048
Other 287 326
Inventories 846 743
Assets of discontinued operations 1,332 1,254
Other current assets 555 431
Total current assets 4,883 4,533
Investment in leases 419 622
Investments and other assets 2,473 2,252
Property, plant and equipment, net 1,933 2,210
Total assets $9,708 $9,617
Liabilities and Shareholders' Equity
Current liabilities
Notes payable $313 $493
Accounts payable 1,266 1,076
Liabilities of discontinued
operations 336 307
Other current liabilities 1,073 1,089
Total current liabilities 2,988 2,965
Long-term debt 2,542 2,605
Deferred employee benefits and other
noncurrent liabilities 1,832 1,901
Minority interest 107 96
Shareholders' equity 2,239 2,050
Total liabilities and
shareholders' equity $9,708 $9,617
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Three Months Ended September 30
2004 2003
Net income $40 $61
Depreciation and amortization 90 92
Asset impairment 22 9
Gain on divestitures, asset
sales and note repurchases (40) (7)
Working capital increase (249) (33)
Deferred taxes (23) (15)
Other 41 10
Net cash flows - operating activities (119) 117
Purchases of property, plant and equipment (66) (73)
Payments received on leases 2 5
Net loan repayments from customers 1
Asset sales 169 27
Other 19 24
Net cash flows - investing activities 124 (16)
Net change in short-term debt 28 88
Payments on and repurchases
of long-term debt (101) (182)
Dividends paid (17) (2)
Other (1)
Net cash flows - financing activities (90) (97)
Net change in cash and cash equivalents (85) 4
Net change in cash - discontinued operations
Cash and cash equivalents - beginning
of period 597 632
Cash and cash equivalents - end of period $512 $636
Dana Corporation
Condensed Statement of Cash Flows (Unaudited)
(in millions)
Nine Months Ended September 30
2004 2003
Net income $215 $154
Depreciation and amortization 273 294
Asset impairment 24 18
Gain on divestitures, asset
sales and note repurchases (65) (29)
Working capital increase (413) (317)
Deferred taxes (64) (28)
Other (34) (7)
Net cash flows - operating activities (64) 85
Purchases of property, plant
and equipment (208) (215)
Payments received on leases 8 21
Net loan repayments from customers 2 12
Divestitures 145
Asset sales 324 206
Other (21) 33
Net cash flows - investing activities 105 202
Net change in short-term debt 181 (9)
Proceeds from long-term debt 5
Payments on and repurchases
of long-term debt (405) (225)
Dividends paid (53) (5)
Other 10 16
Net cash flows - financing activities (262) (223)
Net change in cash and cash equivalents (221) 64
Net change in cash - discontinued
operations 2 1
Cash and cash equivalents - beginning
of period 731 571
Cash and cash equivalents - end of period $512 $636
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Three Months Ended September 30
2004 2003
Net sales $2,114 $1,880
Other income 23 32
2,137 1,912
Costs and expenses
Cost of sales 1,961 1,741
Selling, general and
administrative expenses 114 101
Interest expense 51 40
2,126 1,882
Income before income taxes 11 30
Income tax benefit (expense) 30 (9)
Minority interest (3) (1)
Equity in earnings of affiliates 13 17
Income from continuing operations 51 37
Income (loss) from discontinued operations (11) 24
Net income $40 $61
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Income (Unaudited)
(in millions)
Nine Months Ended September 30
2004 2003
Net sales $6,756 $5,868
Other income 43 72
6,799 5,940
Costs and expenses
Cost of sales 6,183 5,404
Selling, general and
administrative expenses 357 341
Interest expense 128 122
6,668 5,867
Income before income taxes 131 73
Income tax expense (8) (21)
Minority interest (9) (4)
Equity in earnings of affiliates 64 71
Income from continuing operations 178 119
Income from discontinued operations 37 35
Net income $215 $154
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Condensed Balance Sheet (Unaudited)
(in millions)
September 30 December 31
Assets 2004 2003
Current assets
Cash and cash equivalents $487 $664
Accounts receivable
Trade 1,351 1,048
Other 270 300
Inventories 846 743
Assets of discontinued operations 1,332 1,254
Other current assets 533 399
Total current assets 4,819 4,408
Investments and other assets 2,661 2,580
Property, plant and equipment, net 1,916 2,014
Total assets $9,396 $9,002
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $382 $260
Accounts payable 1,266 1,076
Liabilities of discontinued
operations 336 307
Other current liabilities 1,160 1,235
Total current liabilities 3,144 2,878
Long-term debt 2,084 2,087
Deferred employee benefits and
other noncurrent liabilities 1,824 1,893
Minority interest 105 94
Shareholders' equity 2,239 2,050
Total liabilities and
shareholders' equity $9,396 $9,002
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Three Months Ended September 30
2004 2003
Sources
Net income $40 $61
Depreciation 85 78
Asset sales 7 1
Working capital decrease (increase) (236) 3
(104) 143
Uses
Capital spend (65) (76)
Dividends (17) (2)
Restructuring cash payments (16) (28)
Deferred taxes 21 5
Investment in and undistributed
earnings of equity affiliates (16) (18)
Net changes in other accounts 18 24
(75) (95)
Cash change in net debt $(179) $48
Dana Corporation
(Including Dana Credit Corporation on an Equity Basis)
Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Nine Months Ended September 30
2004 2003
Sources
Net income $215 $154
Depreciation 250 249
Asset sales 40 44
Divestitures - 145
Working capital increase (351) (219)
154 373
Uses
Capital spend (204) (209)
Dividends (53) (5)
Restructuring cash payments (65) (92)
Deferred taxes (29) (1)
Investment in and undistributed
earnings of equity affiliates (80) (77)
Net changes in other accounts (17) 59
(448) (325)
Cash change in net debt $(294) $48
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Three Months Ended September 30, 2004
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Net sales $2,114 $ $ $2,114
Other income (expense) 23 (20) (10) (7)
2,137 (20) (10) 2,107
Costs and expenses
Cost of sales 1,961 (6) 1,955
Selling, general and
administrative expenses 114 12 (3) 123
Interest expense 51 12 (1) 62
2,126 24 (10) 2,140
Income (loss) before income taxes 11 (44) - (33)
Income tax benefit 30 51 81
Minority interest (3) (3)
Equity in earnings of affiliates 13 (7) 6
Income from continuing operations 51 7 (7) 51
Income from discontinued operations (11) (11)
Net income $40 $7 $(7) $40
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Nine Months Ended September 30, 2004
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Net sales $6,756 $ $ $6,756
Other income 43 26 (37) 32
6,799 26 (37) 6,788
Costs and expenses
Cost of sales 6,183 (22) 6,161
Selling, general and
administrative expenses 357 38 (14) 381
Interest expense 128 37 (1) 164
6,668 75 (37) 6,706
Income (loss) before income taxes 131 (49) - 82
Income tax benefit (expense) (8) 86 78
Minority interest (9) (9)
Equity in earnings of affiliates 64 4 (41) 27
Income from continuing operations 178 41 (41) 178
Income from discontinued operations 37 37
Net income $215 $41 $(41) $215
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Three Months Ended September 30, 2003
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Net sales $1,880 $ $ $1,880
Other income 32 27 (18) 41
1,912 27 (18) 1,921
Costs and expenses
Cost of sales 1,741 (10) 1,731
Selling, general and
administrative expenses 101 22 (8) 115
Interest expense 40 15 55
1,882 37 (18) 1,901
Income (loss) before income taxes 30 (10) - 20
Income tax benefit (expense) (9) 22 13
Minority interest (1) (1)
Equity in earnings of affiliates 17 5 (17) 5
Income from continuing operations 37 17 (17) 37
Income from discontinued operations 24 24
Net income $61 $17 $(17) $61
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Condensed Consolidating Statement of Income (Unaudited)
(in millions)
Nine Months Ended September 30, 2003
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Net sales $5,868 $ $ $5,868
Other income 72 101 (60) 113
5,940 101 (60) 5,981
Costs and expenses
Cost of sales 5,404 (34) 5,370
Selling, general and
administrative expenses 341 77 (26) 392
Interest expense 122 47 169
5,867 124 (60) 5,931
Income (loss) before income taxes 73 (23) - 50
Income tax benefit (expense) (21) 55 34
Minority interest (4) (4)
Equity in earnings of affiliates 71 16 (48) 39
Income from continuing operations 119 48 (48) 119
Income from discontinued operations 35 35
Net income $154 $48 $(48) $154
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Condensed Consolidating Balance Sheet (Unaudited)
(in millions)
September 30, 2004
Dana with Elimi- Dana
DCC on nation Consoli-
Assets Equity Basis DCC Entries dated
Current assets
Cash and cash equivalents $487 $25 $ $512
Accounts receivable
Trade 1,351 1,351
Other 270 169 (152) 287
Inventories 846 846
Assets of discontinued
operations 1,332 1,332
Other current assets 533 156 (134) 555
Total current assets 4,819 350 (286) 4,883
Investment in leases 419 419
Investments and other assets 2,661 467 (655) 2,473
Property, plant and
equipment, net 1,916 17 - 1,933
Total assets $9,396 $1,253 $(941) $9,708
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $382 $76 $(145) $313
Accounts payable 1,266 1,266
Liabilities of
discontinued operations 336 336
Other current liabilities 1,160 55 (142) 1,073
Total current liabilities 3,144 131 (287) 2,988
Long-term debt 2,084 458 2,542
Deferred employee benefits
and other noncurrent
liabilities 1,824 330 (322) 1,832
Minority interest 105 2 107
Shareholders' equity 2,239 332 (332) 2,239
Total liabilities and
shareholders' equity $9,396 $1,253 $(941) $9,708
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Condensed Consolidating Balance Sheet (Unaudited)
(in millions)
December 31, 2003
Dana with Elimi- Dana
DCC on nation Consoli-
Assets Equity Basis DCC Entries dated
Current assets
Cash and cash equivalents $664 $67 $ $731
Accounts receivable
Trade 1,048 1,048
Other 300 26 326
Inventories 743 743
Assets of discontinued
operations 1,254 1,254
Other current assets 399 212 (180) 431
Total current assets 4,408 305 (180) 4,533
Investment in leases 802 (180) 622
Investments and other
assets 2,580 559 (887) 2,252
Property, plant and
equipment, net 2,014 16 180 2,210
Total assets $9,002 $1,682 $(1,067) $9,617
Liabilities and
Shareholders' Equity
Current liabilities
Notes payable $260 $233 $ $493
Accounts payable 1,076 1,076
Liabilities of
discontinued operations 307 307
Other current liabilities 1,235 34 (180) 1,089
Total current liabilities 2,878 267 (180) 2,965
Long-term debt 2,087 518 2,605
Deferred employee benefits
and other noncurrent
liabilities 1,893 604 (596) 1,901
Minority interest 94 2 96
Shareholders' equity 2,050 291 (291) 2,050
Total liabilities and
shareholders' equity $9,002 $1,682 $(1,067) $9,617
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Three Months Ended September 30, 2004
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Sources
Net income $40 $7 $(7) $40
Depreciation 85 5 90
Asset sales 7 162 169
Working capital decrease (increase) (236) 1 2 (233)
(104) 175 (5) 66
Uses
Capital spend (65) (1) (66)
Dividends (17) (17)
Restructuring cash payments (16) (16)
Deferred taxes 21 (44) (23)
Investment in and undistributed
earnings of equity affiliates (16) (34) 7 (43)
Net changes in other accounts 18 (74) 143 87
(75) (153) 150 (78)
Cash change in net debt $(179) $22 $145 $(12)
Analysis of components of decrease
in net debt:
Net change in short-term debt $173 $ $(145) $28
Net payments on long-term debt (5) (96) (101)
Change in cash - continuing operations 11 74 85
Cash change in net debt 179 (22) (145) 12
Non-cash changes in net debt 35 1 36
Total change in net debt $214 $(21) $(145) $48
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Nine Months Ended September 30, 2004
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Sources
Net income $215 $41 $(41) $215
Depreciation 250 23 273
Asset sales 40 287 (3) 324
Working capital increase (351) 3 (348)
154 351 (41) 464
Uses
Capital spend (204) (7) 3 (208)
Dividends (53) (53)
Restructuring cash payments (65) (65)
Deferred taxes (29) (35) (64)
Investment in and undistributed
earnings of equity affiliates (80) (4) 41 (43)
Net changes in other accounts (17) (156) 142 (31)
(448) (202) 186 (464)
Cash change in net debt $(294) $149 $145 $-
Analysis of components of increase
(decrease) in net debt:
Net change in short-term debt $356 $(30) $(145) $181
Net payments on long-term debt (239) (161) (400)
Change in cash - continuing
operations 177 42 219
Cash change in net debt 294 (149) (145) -
Non-cash changes in net debt 2 (26) (24)
Total change in net debt $296 $(175) $(145) $(24)
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Three Months Ended September 30, 2003
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Sources
Net income $61 $17 $(17) $61
Depreciation 78 14 92
Asset sales 1 30 (4) 27
Divestitures -
Working capital decrease (increase) 3 (4) (4) (5)
143 57 (25) 175
Uses
Capital spend (76) (1) 4 (73)
Dividends (2) (2)
Restructuring cash payments (28) (28)
Deferred taxes 5 (20) (15)
Investment in and undistributed
earnings of equity affiliates (18) (5) 17 (6)
Net changes in other accounts 24 21 4 49
(95) (5) 25 (75)
Cash change in net debt $48 $52 $- $100
Analysis of components of decrease
in net debt:
Net change in short-term debt $92 $ $ $92
Repurchases of long-term debt (140) (140)
Proceeds from swap settlement 18 18
Net payments on long-term debt (15) (52) (67)
Change in cash - continuing
operations (3) (3)
Cash change in net debt (48) (52) - (100)
Non-cash changes in net debt (53) (1) (54)
Total change in net debt $(101) $(53) $- $(154)
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Dana Corporation
Consolidating Cash Flow Impact on Net Debt (Unaudited)
(in millions)
Nine Months Ended September 30, 2003
Dana with Elimi- Dana
DCC on nation Consoli-
Equity Basis DCC Entries dated
Sources
Net income $154 $48 $(48) $154
Depreciation 249 45 294
Asset sales 44 167 (5) 206
Divestitures 145 145
Working capital increase (219) (8) 2 (225)
373 252 (51) 574
Uses
Capital spend (209) (9) 3 (215)
Dividends (5) (5)
Restructuring cash payments (92) (92)
Deferred taxes (1) (27) (28)
Investment in and undistributed
earnings of equity affiliates (77) (16) 48 (45)
Net changes in other accounts 59 32 91
(325) (20) 51 (294)
Cash change in net debt $48 $232 $- $280
Analysis of components of increase
(decrease) in net debt:
Net change in short-term debt $87 $(96) $ $(9)
Repurchases of long-term debt (140) (140)
Proceeds from swap settlement 18 18
Net payments on long-term debt (15) (70) (85)
Change in cash - continuing
operations 2 (66) (64)
Cash change in net debt (48) (232) - (280)
Non-cash changes in net debt (17) (33) (50)
Total change in net debt $(65) $(265) $- $(330)
This consolidating statement provides a reconciliation of the
amounts presented for Dana with Dana Credit Corporation (DCC) on
an equity basis to amounts reported for Dana Corporation on a
fully consolidated basis.
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Quarter Ended September 30, 2004
(in millions)
Inter-Segment
External Sales Sales EBIT
04 03 04 03 04 03
Automotive Systems Group $1,535 $1,392 $48 $40 $67 $82
Heavy Vehicle Technologies and
Systems Group 562 471 8 17 42 38
Dana Commercial Credit
Other 17 17 3 2 (59) (65)
Continuing Operations 2,114 1,880 59 59 50 55
Discontinued Operations 29 40
Unusual Items Excluded from
Performance Measurement (6) 12
Consolidated $2,114 $1,880 $59 $59 $73 $107
North America $1,383 $1,289 $29 $19 $17 $54
Europe 408 336 29 19 33 28
South America 171 122 55 42 29 21
Asia Pacific 152 133 8 1 7 13
Dana Commercial Credit
Other (36) (61)
Continuing Operations 2,114 1,880 121 81 50 55
Discontinued Operations 29 40
Unusual Items Excluded from
Performance Measurement (6) 12
Consolidated $2,114 $1,880 $121 $81 $73 $107
Information for Discontinued
Operations 540 530 5 3
The performance and net assets of Clevite are now included in ASG.
See Notes 20 and 21 in Dana's 2003 Annual Report for further information
( http://www.dana.com/ ).
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Quarter Ended September 30, 2004
(in millions)
Operating
PAT Net Profit Net Assets
04 03 04 03 04 03
Automotive Systems Group $46 $52 $10 $17 $3,092 $3,006
Heavy Vehicle Technologies and
Systems Group 26 23 10 9 682 635
Dana Commercial Credit 4 6 4 6 332 323
Other (35) (62) 17 (13) 110 20
Continuing Operations 41 19 41 19 4,216 3,984
Discontinued Operations 19 24 19 24
Unusual Items Excluded from
Performance Measurement (20) 18 (20) 18
Consolidated $40 $61 $40 $61 $4,216 $3,984
North America $10 $32 $(14) $1 $2,294 $2,245
Europe 24 16 16 7 1,141 1,078
South America 17 13 15 10 350 279
Asia Pacific 5 9 1 4 159 179
Dana Commercial Credit 4 6 4 6 332 323
Other (19) (57) 19 (9) (60) (120)
Continuing Operations 41 19 41 19 4,216 3,984
Discontinued Operations 19 24 19 24
Unusual Items Excluded from
Performance Measurement (20) 18 (20) 18
Consolidated $40 $61 $40 $61 $4,216 $3,984
Information for Discontinued
Operations 986 929
The performance and net assets of Clevite are now included in ASG.
See Notes 20 and 21 in Dana's 2003 Annual Report for further information
( http://www.dana.com/ ).
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Nine Months Ended September 30, 2004
(in millions)
Inter-Segment
External Sales Sales EBIT
04 03 04 03 04 03
Automotive Systems Group $4,966 $4,396 $141 $111 $279 $246
Heavy Vehicle Technologies and
Systems Group 1,732 1,425 26 58 132 93
Dana Commercial Credit
Other 58 47 6 5 (164) (164)
Continuing Operations 6,756 5,868 173 174 247 175
Discontinued Operations 84 71
Unusual Items Excluded from
Performance Measurement (15) 5
Consolidated $6,756 $5,868 $173 $174 $316 $251
North America $4,554 $4,085 $81 $66 $181 $167
Europe 1,288 1,074 90 59 101 84
South America 454 315 149 122 74 47
Asia Pacific 460 394 22 2 25 37
Dana Commercial Credit
Other (134) (160)
Continuing Operations 6,756 5,868 342 249 247 175
Discontinued Operations 84 71
Unusual Items Excluded from
Performance Measurement (15) 5
Consolidated $6,756 $5,868 $342 $249 $316 $251
Information for Discontinued
Operations 1,607 1,680 14 11
The performance and net assets of Clevite are now included in ASG.
See Notes 20 and 21 in Dana's 2003 Annual Report for further information
( http://www.dana.com/ ).
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Nine Months Ended September 30, 2004
(in millions)
Operating
PAT Net Profit Net Assets
04 03 04 03 04 03
Automotive Systems Group $189 $175 $93 $79 $3,092 $3,006
Heavy Vehicle Technologies and
Systems Group 81 57 39 18 682 635
Dana Commercial Credit 16 18 16 18 332 323
Other (136) (166) 2 (31) 110 20
Continuing Operations 150 84 150 84 4,216 3,984
Discontinued Operations 50 37 50 37
Unusual Items Excluded from
Performance Measurement 15 33 15 33
Consolidated $215 $154 $215 $154 $4,216 $3,984
North America $112 $104 $34 $17 $2,294 $2,245
Europe 72 64 48 40 1,141 1,078
South America 45 29 38 22 350 279
Asia Pacific 17 24 7 13 159 179
Dana Commercial Credit 16 18 16 18 332 323
Other (112) (155) 7 (26) (60) (120)
Continuing Operations 150 84 150 84 4,216 3,984
Discontinued Operations 50 37 50 37
Unusual Items Excluded from
Performance Measurement 15 33 15 33
Consolidated $215 $154 $215 $154 $4,216 $3,984
Information for Discontinued
Operations 986 929
The performance and net assets of Clevite are now included in ASG.
See Notes 20 and 21 in Dana's 2003 Annual Report for further information
( http://www.dana.com/ ).
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Three Months Ended June 30, 2004
(in millions)
Inter-Segment
External Sales Sales EBIT
04 03 04 03 04 03
Automotive Systems Group $1,719 $1,497 $48 $35 $109 $88
Heavy Vehicle Technologies and
Systems Group 592 499 9 20 51 30
Dana Commercial Credit
Other 20 16 1 2 (46) (53)
Continuing Operations 2,331 2,012 58 57 114 65
Discontinued Operations 30 19
Unusual Items Excluded from
Performance Measurement (8) (8)
Consolidated $2,331 $2,012 $58 $57 $136 $76
North America $1,577 $1,387 $25 $23 $80 $59
Europe 442 377 31 21 37 27
South America 153 107 50 42 27 18
Asia Pacific 159 141 13 10 13
Dana Commercial Credit
Other (40) (52)
Continuing Operations 2,331 2,012 119 86 114 65
Discontinued Operations 30 19
Unusual Items Excluded from
Performance Measurement (8) (8)
Consolidated $2,331 $2,012 $119 $86 $136 $76
Information for Discontinued
Operations 557 603 5 4
The performance and net assets of Clevite are now included in ASG.
See Notes 20 and 21 in Dana's 2003 Annual Report for further information
( http://www.dana.com/ ).
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Three Months Ended June 30, 2004
(in millions)
Operating
PAT Net Profit Net Assets
04 03 04 03 04 03
Automotive Systems Group $72 $66 $44 $35 $2,986 $2,980
Heavy Vehicle Technologies and
Systems Group 31 19 18 5 621 643
Dana Commercial Credit 5 6 5 6 325 306
Other (49) (52) (8) (7) (50)
Continuing Operations 59 39 59 39 3,882 3,929
Discontinued Operations 18 8 18 8
Unusual Items Excluded from
Performance Measurement 33 5 33 5
Consolidated $110 $52 $110 $52 $3,882 $3,929
North America $48 $40 $24 $11 $2,162 $2,242
Europe 26 23 19 15 1,096 1,051
South America 17 11 14 9 327 293
Asia Pacific 7 8 3 5 159 167
Dana Commercial Credit 5 6 5 6 325 306
Other (44) (49) (6) (7) (187) (130)
Continuing Operations 59 39 59 39 3,882 3,929
Discontinued Operations 18 8 18 8
Unusual Items Excluded from
Performance Measurement 33 5 33 5
Consolidated $110 $52 $110 $52 $3,882 $3,929
Information for Discontinued
Operations 970 962
The performance and net assets of Clevite are now included in ASG.
See Notes 20 and 21 in Dana's 2003 Annual Report for further information
( http://www.dana.com/ ).
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Quarter Ended March 31, 2004
(in millions)
Inter-Segment
External Sales Sales EBIT
04 03 04 03 04 03
Automotive Systems Group $1,712 $1,507 $45 $36 $103 $76
Heavy Vehicle Technologies and
Systems Group 578 455 9 21 39 25
Dana Commercial Credit
Other 21 14 2 1 (59) (45)
Continuing Operations 2,311 1,976 56 58 83 56
Discontinued Operations 25 12
Unusual Items Excluded from
Performance Measurement (1)
Consolidated $2,311 $1,976 $56 $58 $107 $68
North America $1,594 $1,409 $27 $24 $83 $54
Europe 438 361 30 19 30 29
South America 130 86 44 38 18 8
Asia Pacific 149 120 1 1 8 11
Dana Commercial Credit
Other (56) (46)
Continuing Operations 2,311 1,976 102 82 83 56
Discontinued Operations 25 12
Unusual Items Excluded from
Performance Measurement (1)
Consolidated $2,311 $1,976 $102 $82 $107 $68
Information for Discontinued
Operations 510 547 4 4
The performance and net assets of Clevite are now included in ASG.
See Notes 20 and 21 in Dana's 2003 Annual Report for further information
( http://www.dana.com/ ).
Investor Relations
Dana Corporation
Quarterly Financial Information (Unaudited)
For the Quarter Ended March 31, 2004
(in millions)
Operating
PAT Net Profit Net Assets
04 03 04 03 04 03
Automotive Systems Group $71 $57 $40 $27 $3,031 $2,888
Heavy Vehicle Technologies and
Systems Group 24 15 10 4 637 631
Dana Commercial Credit 7 6 7 6 301 287
Other (52) (52) (7) (11) (29) 18
Continuing Operations 50 26 50 26 3,940 3,824
Discontinued Operations 13 5 13 5
Unusual Items Excluded from
Performance Measurement 2 10 2 10
Consolidated $65 $41 $65 $41 $3,940 $3,824
North America $54 $32 $25 $5 $2,165 $2,209
Europe 22 25 14 18 1,136 993
South America 11 5 9 3 312 269
Asia Pacific 5 7 2 4 183 164
Dana Commercial Credit 7 6 7 6 301 287
Other (49) (49) (7) (10) (157) (98)
Continuing Operations 50 26 50 26 3,940 3,824
Discontinued Operations 13 5 13 5
Unusual Items Excluded from
Performance Measurement 2 10 2 10
Consolidated $65 $41 $65 $41 $3,940 $3,824
Information for Discontinued
Operations 945 1,056
The performance and net assets of Clevite are now included in ASG.
See Notes 20 and 21 in Dana's 2003 Annual Report for further information
( http://www.dana.com/ ).