TOLEDO, Ohio, Jan. 17 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE:DCN) today reported financial results for both the quarter
and nine months ended Sept. 30, 2005, and announced that it will
file its Form 10-Q for the third quarter of 2005 later today. The
filing and delivery of this report will eliminate any defaults
related to late filing of the third-quarter financial statements
under the company's financing agreements. (Logo:
http://www.newscom.com/cgi-bin/prnh/19990903/DANA ) Sales for the
third quarter of 2005 were $2,396 million, compared to $2,114
million during the same period in 2004. The company recorded a net
loss of $1,272 million, or $8.50 per share, for the quarter,
compared to net income of $42 million, or 28 cents per share in the
third quarter of 2004. Results for the quarter and nine months
ended Sept. 30, 2004 have been restated, as previously disclosed in
the 2004 Form 10-K/A filed on Dec. 30, 2005. The third-quarter 2005
net loss included two significant unusual items that were
previously announced. These two non-cash items account for 94
percent of the reported net loss: -- The company provided a
valuation allowance, as announced on Oct. 10, 2005, against its net
U.S. deferred tax assets during the third quarter. The one-time
impact of providing this allowance was a reduction in net income of
$918 million in the period, which represents the restated net U.S.
deferred tax assets at the beginning of the third quarter and also
includes $13 million for a similar allowance against the company's
U.K. tax assets. The valuation allowance was recorded because,
based on its current outlook, Dana believes it is no longer more
likely than not that the company will be able to utilize these tax
assets. This action does not affect the company's ability to use
these tax assets later if justified by future profitability in the
U.S. and U.K. -- Additionally, on Oct. 20, 2005, the company
announced its intention to divest its non-core engine hard parts,
fluid products, and pump products businesses. An impairment charge
to reduce the book value of certain assets of these businesses of
$275 million after tax was recorded in the third quarter.
Additional charges will be recorded in the fourth quarter of 2005
in connection with the classification of these businesses as
discontinued operations. In the third quarter of 2005, the company
also recorded an aggregate charge of approximately $16 million, or
11 cents per share, related to the sale of its domestic fuel rail
business and the dissolution of its engine bearings joint venture
with The Daido Metal Company. The balance of the third-quarter 2005
loss - totaling $63 million - was from operations. The comparable
number for the third quarter of 2004 was $39 million after
adjusting for unusual charges and results of discontinued
operations. The comparison of quarterly operating income
year-on-year was impacted significantly by taxes. The third-quarter
2004 results included a significant tax benefit. By contrast,
third-quarter 2005 results reflect tax expense on income of foreign
operations, despite the fact that there was a consolidated loss
before tax. This is due to the fact that the company no longer
provides deferred tax benefits against U.S. losses. Interest
expense was $11 million lower in the third quarter of 2005 than in
the comparable period in 2004 due to lower average debt levels. As
disclosed in the company's segment information, on an EBIT basis
the Heavy Vehicle Technologies and Systems Group earned $16 million
in the third quarter of 2005, compared to $41 million during the
same period in 2004. The principal reasons for this decline were
substantially higher steel costs and production inefficiencies
within the Commercial Vehicle business. Additionally, the
Off-Highway business experienced higher costs associated with the
ongoing realignment of its manufacturing facilities. On an EBIT
basis, the Automotive Systems Group's earnings declined to $41
million in the third quarter of 2005 from $65 million during the
same period last year. In addition to the adverse effects of higher
material costs and continuing pricing pressures, results in this
business unit were also negatively impacted by start-up losses at a
new manufacturing facility in its actuation systems joint venture.
Nine-Month Results Sales for the nine months ended Sept. 30, 2005
were $7,505 million which compares to $6,755 million for the same
period in 2004. For the first nine months of 2005, the company
reported a net loss of $1,226 million compared to net income of
$200 million for the same period in 2004. The primary reasons for
the difference in the year-on-year change in net income were the
unusual items that occurred in the third quarter. On an EBIT basis
the Heavy Vehicle Technologies and Systems Group earned $81 million
in the first nine months of 2005, compared to $125 million during
the same period in 2004. The Automotive Systems Group earnings
declined to $179 million in the first nine months of 2005 from $270
million during the same period last year. Material costs were
chiefly responsible for the lower income in both business units.
"Obviously, our results are far from acceptable, particularly the
operating loss," said Dana Chairman and CEO Mike Burns. "Many of
the challenges we are facing on the automotive side, including
higher material costs and lower production levels, are
industry-wide issues. However, the reduced income in our Heavy
Vehicle unit reflects not only material cost increases, but also
internal operating inefficiencies, which we are moving aggressively
to address. "Specifically, within our Commercial Vehicle business,
we have announced a series of actions to reposition our operations
and balance capacity to enhance our efficiency," Mr. Burns added.
"I am also confident in the capabilities of our newly appointed
Heavy Vehicle Products President, Nick Stanage. Nick's outstanding
combination of leadership ability and technical knowledge promises
to serve this business and our customers well as we move forward."
Mr. Burns said Dana is continuing to improve focus and increase
performance in all of its businesses, as evidenced by recent
announcements regarding strategic divestitures, consolidation of
facilities, and workforce reductions. "At the same time, we can't
just work the cost side," he said. "We must also continue to grow
our revenue base. And to this end, we continue to add to our
backlog of profitable new business." Conference Call Scheduled
Today at 10 a.m. Dana will discuss its third-quarter 2005 and
nine-month results, as well as matters related to the company's
restated financial statements, during a conference call and
supporting webcast at 10 a.m. (ET) today. The call may be accessed
via Dana's web site (http://www.dana.com/), or by dialing (877)
340- DANA (3262) in the U.S. and Canada, or (706) 758-9313
elsewhere. Callers must reference Conference I.D. #4076436. An
audio recording of this conference call will be available after 2
p.m. (ET) today. To access this recording, please dial (800)
642-1687 in the U.S. and Canada, or (706) 645-9291 elsewhere, and
enter the Conference I.D. number referenced above. A webcast replay
of the call will also be available after 4 p.m. today and will be
accessible via the Dana web site. Individuals may also print the
supporting slide presentation available in PDF format by visiting
the investor page at: http://www.dana.com/. About Dana Corporation
Dana people design and manufacture products for every major vehicle
producer in the world. Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle
customers, which collectively produce more than 60 million vehicles
annually. A leading supplier of axle, driveshaft, engine, frame,
chassis, and transmission technologies, Dana employs 46,000 people
in 28 countries. Based in Toledo, Ohio, the company reported sales
of $9 billion in 2004. Dana's Internet address is:
http://www.dana.com/. Use of Non-GAAP Financial Information This
release contains information about Dana's financial results which
is not presented in accordance with accounting principles generally
accepted in the United States (GAAP). Specifically, the release
contains information about Dana's financial results presented on an
EBIT basis and includes tables that show the company's results with
Dana Credit Corporation (DCC) accounted for on an equity basis,
rather than on a consolidated basis. Management believes that the
presentation of the EBIT financial measures provides useful
information to investors due to the impact of the unusual tax items
on the company's three- and nine-month results in 2005. Management
also believes that the presentation of results with DCC on an
equity basis is useful because that is how management evaluates
Dana's operating segments. This is done because DCC is not
homogenous with Dana's manufacturing operations, its financing
activities do not support the sales of the other operating
segments, and its financial and performance measures are
inconsistent with those of the other operating segments. Moreover,
the financial covenants in Dana's bank facility are measured with
DCC accounted for on an equity basis. For the non- GAAP measures
presented in this release, there is supplementary information at
the end showing the most directly comparable financial measures
calculated and presented in accordance with GAAP and a quantitative
reconciliation of the differences between the non-GAAP financial
measures and the most directly comparable GAAP financial measures.
Forward-Looking Statements Statements in this release which are not
entirely historical constitute "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements represent Dana's expectations based on our
current information and assumptions. However, forward-looking
statements are inherently subject to risks and uncertainties and
Dana's actual results could differ materially from those that are
anticipated or projected due to a number of factors. These factors
include the cyclical nature of the vehicular markets we serve,
particularly the heavy-duty commercial vehicle market; changes in
the competitive environment in our markets due, in part, to
outsourcing and consolidation by our customers; changes in national
and international economic conditions that affect our markets, such
as increased fuel prices and legislation regulating vehicle
emissions; potential adverse effects on our operations and business
from terrorism or hostilities; the strength of other currencies in
the overseas countries in which we do business relative to the U.S.
dollar; increases in our commodity costs (including steel, other
raw materials, and energy) that we cannot recoup in our product
pricing; our success in implementing our cost-savings, lean
manufacturing and VA/VE (value added/value engineering) programs;
changes in business relationships with our major customers and in
the timing, size and continuation of their programs; the ability of
our customers to maintain their market positions and achieve their
projected sales and production levels; the ability of our suppliers
to maintain their projected production levels and furnish critical
components for our products, as well as other necessary goods and
services; competitive pressures on our sales from other vehicle
component suppliers; price reduction pressures from our customers;
our ability to negotiate new or modified financing agreements prior
to the expiration of the waivers under our existing agreements; our
ability to complete our previously announced strategic actions as
contemplated (including the divestiture of our non-core engine hard
parts, fluid products and pump products businesses; the operational
restructuring in our Automotive Systems Group and our Commercial
Vehicle business; the dissolution of our Mexican joint venture,
Spicer S.A. de C.V.; and the finalization of our Chinese joint
venture, Dongfeng Axle Co., Ltd.); and other factors set out in our
public filings with the Securities and Exchange Commission.
Forward-looking statements in this release speak only as of the
date of the release. Dana does not undertake to update such
forward- looking statements. Dana Corporation Financial Summary
(Unaudited) (in millions, except per share amounts) Three Months
Ended Nine Months Ended Sept 30 Sept 30 2005 2004 2005 2004
Restated Restated Sales $2,396 $2,114 $7,505 $6,755 Income (loss)
from continuing operations $(1,274) $54 $(1,232) $165 Income (loss)
from discontinued operations - (12) - 35 Effect of change in
accounting 2 - 6 - Net income (loss) $(1,272) $42 $(1,226) $200
Income (loss) from continuing operations $(1,274) $54 $(1,232) $165
Impairment and restructuring charges 275 5 275 5 Losses on
divestitures 16 - 16 - Valuation allowance against deferred tax
assets 920 920 Gain associated with the sale of assets to a newly
formed joint venture - (13) - (13) Net gains associated with DCC
asset sales - (7) (4) (25) Charge related to Ohio tax legislation -
- 5 - Income (loss) from continuing operations, excluding unusual
items $(63) $39 $(20) $132 Income (loss) from discontinued
operations $ - $(12) $ - $ 35 Adjustment of deferred tax allowance
related to aftermarket sale - 20 - - Costs related to sale of
aftermarket businesses - 10 - 13 Income from discontinued
operations, excluding unusual items $ - $ 18 $ - $ 48 Diluted
earnings (loss) per share: Income (loss) from continuing operations
$(8.51) $0.36 $(8.24) $1.10 Effect of change in accounting 0.01 -
0.04 - Income(loss) from discontinued operations - (0.08) - 0.23
Net income $(8.50) $0.28 $(8.20) $1.33 Income (loss) from
continuing operations, excluding unusual items $(0.42) $0.26
$(0.13) $0.87 Income (loss) from discontinued operations, excluding
unusual items - 0.12 - 0.32 Net income, excluding unusual items
(0.42) 0.38 (0.13) 1.19 Effect of change in accounting 0.01 - 0.04
- Income (loss) from Unusual items (8.09) (0.10) (8.11) 0.14 Net
income (loss) $(8.50) $0.28 $(8.20) $1.33 Dana Corporation
Reconciliation of Earnings before interest and taxes (EBIT) for the
Segments to Income before income taxes (Unaudited) (in millions)
Three Months Nine Months Ended Sept 30, Ended Sept 30, 2005 2004
2005 2004 Restated Restated Segment income (loss) ASG $41 $65 $179
$270 HVTSG 16 41 81 125 57 106 260 395 Other (75) (65) (201) (174)
Segment income (loss) from continuing operations $(18) $41 $59 $221
Unusual items excluded from performance measures Total operations
(306) (6) (297) (15) Discontinued operations 16 20 Interest
expense, excluding DCC (34) (42) (102) (120) Interest income,
excluding DCC 8 1 24 7 DCC pre-tax loss (1) (42) (12) (49) Income
(loss) before income taxes $(351) $(32) $(328) $64 Dana Corporation
Condensed Statement of Income (Unaudited) (in millions, except per
share amounts) Three Months Ended Nine Months Ended Sept 30 Sept 30
2005 2004 2005 2004 Restated Restated Net sales $2,396 $2,114
$7,505 $6,755 Revenue from lease financing and other income 11 (8)
67 27 2,407 2,106 7,572 6,782 Costs and expenses Cost of sales
2,290 1,964 7,072 6,186 Selling, general and administrative
expenses 136 121 413 375 Impairment charges 290 290 - Interest
expense 42 53 125 157 2,758 2,138 7,900 6,718 Income (loss) before
income taxes (351) (32) (328) 64 Income tax benefit (expense) (929)
83 (925) 85 Minority interest 1 (3) (5) (9) Equity in earnings of
affiliates 5 6 26 25 Income (loss) from continuing operations
(1,274) 54 (1,232) 165 Effect of change in accounting 2 - 6 -
Income (loss) from discontinued operations (12) - 35 Net income
(loss) $(1,272) $42 $(1,226) $200 Basic earnings per share Income
(loss) from continuing operations $(8.51) $0.36 $(8.24) $1.11
Effect of change in accounting 0.01 - 0.04 - Income (loss) from
discontinued operations - (0.08) - 0.23 Net income (loss) $(8.50)
$0.28 $(8.20) $1.34 Diluted earnings per share Income (loss) from
continuing operations $(8.51) $0.36 $(8.24) $1.10 Effect of change
in accounting 0.01 - 0.04 - Income (loss) from discontinued
operations - (0.08) - 0.23 Net income (loss) $(8.50) $0.28 $(8.20)
$1.33 Average shares outstanding - For Basic EPS 150 149 150 149
For Diluted EPS 151 151 151 151 Dana Corporation Condensed Balance
Sheet (Unaudited) (in millions) September 30 December 31 2005 2004
Restated Assets Current assets Cash and cash equivalents $ 730 $
634 Accounts receivable Trade 1,454 1,254 Other 274 437 Inventories
878 898 Other current assets 146 200 Total current assets 3,482
3,423 Investment in leases 256 281 Investments and other assets
2,397 3,144 Property, plant and equipment, net 1,742 2,171 Total
assets $7,877 $9,019 Liabilities and Shareholders' Equity Current
liabilities Notes payable $2,304 $ 155 Accounts payable 1,322 1,330
Other current liabilities 1,082 1,188 Total current liabilities
4,708 2,673 Long-term debt 280 2,054 Deferred employee benefits and
other noncurrent liabilities 1,747 1,759 Minority interest 85 122
Shareholders' equity 1,057 2,411 Total liabilities and
shareholders' equity $7,877 $9,019 Dana Corporation Condensed
Statement of Cash Flows (Unaudited) (in millions) Three Months Nine
Months Ended Sept. 30 Ended Sept. 30 2005 2004 2005 2004 Restated
Restated Net income (loss) $(1,272) $42 $(1,226) $200 Depreciation
and amortization 64 90 227 273 Impairments 290 24 290 24 (Gain)
loss on asset sales 19 (32) 14 (57) Effect of change in accounting
(2) (6) Working capital decrease (increase) 22 (249) (193) (378)
Deferred taxes 763 (31) 728 (72) Other (35) 46 (134) (47) Net cash
flows - operating activities (151) (110) (300) (57) Purchases of
property, plant and equipment (69) (66) (193) (214) Payments
received from leases and partnerships 32 2 70 10 Proceeds from
divestitures and asset sales 39 166 176 318 Other 70 10 27 (22) Net
cash flows - investing activities 40 112 80 92 Net change in
short-term debt 181 28 406 181 Payments on long-term debt - (101)
(45) (405) Proceeds from long-term debt 21 - 21 5 Dividends paid
(18) (17) (54) (53) Other (9) 3 (12) 16 Net cash flows - financing
activities 175 (87) 316 (256) Net change in cash and cash
equivalents 64 (85) 96 (221) Net change in cash - discontinued
operations - - - 2 Cash and cash equivalents - beginning of period
666 597 634 731 Cash and cash equivalents - end of period $730 $512
$730 $512 Dana Corporation (Including Dana Credit Corporation on an
Equity Basis) Condensed Statement of Income (Unaudited) (in
millions) Three Months Ended Nine Months Ended Sept. 30 Sept. 30
2005 2004 2005 2004 Restated Restated Net sales $2,396 $2,114
$7,505 $6,755 Other income (expense) (1) 23 41 37 2,395 2,137 7,546
6,792 Costs and expenses Cost of sales 2,293 1,970 7,083 6,205
Selling, general and administrative expenses 128 115 387 353
Impairment charges 290 290 Interest expense 34 42 102 120 2,745
2,127 7,862 6,678 Income (loss) before income taxes (350) 10 (316)
114 Income tax benefit (expense) (932) 29 (946) (7) Minority
interest 1 (3) (5) (9) Equity in earnings of affiliates 7 18 35 67
Income (loss) from continuing operations (1,274) 54 (1,232) 165
Change in accounting 2 6 Income (loss) from discontinued operations
(12) 35 Net income (loss) $(1,272) $42 $(1,226) $200 Dana
Corporation (Including Dana Credit Corporation on an Equity Basis)
Condensed Balance Sheet (Unaudited) (in millions) September 30
December 31 2005 2004 Assets Restated Current assets Cash and cash
equivalents $ 707 $ 619 Accounts receivable Trade 1,454 1,253 Other
277 438 Inventories 878 898 Other current assets 123 170 Total
current assets 3,439 3,378 Investment in leases Investments and
other assets 2,650 3,338 Property, plant and equipment, net 1,690
2,033 ------ ------ Total assets $7,779 $8,749 Liabilities and
Shareholders' Equity Current liabilities Notes payable $2,157 $289
Accounts payable 1,322 1,330 Other current liabilities 1,193 1,236
Total current liabilities 4,672 2,855 Long-term debt 225 1,611
Deferred employee benefits and other noncurrent liabilities 1,742
1,752 Minority interest 83 120 Shareholders' equity 1,057 2,411
Total liabilities and shareholders' equity $7,779 $8,749 Dana
Corporation (Including Dana Credit Corporation on an Equity Basis)
Condensed Statement of Cash Flows (Unaudited) (in millions) Three
Months Nine Months Ended Sept. 30 Ended Sept. 30 2005 2004 2005
2004 Restated Restated Net income (loss) $(1,272) $42 $(1,226) $200
Depreciation and amortization 60 84 214 249 Impairments 290 3 290 3
(Gain) loss on asset sales 19 (20) 14 (23) Effect of change in
accounting (2) - (6) - Working capital decrease (increase) 47 (258)
(170) (386) Deferred taxes 773 (18) 734 (68) Other (72) 55 (73)
(26) Net cash flows - operating activities (157) (112) (223) (51)
Purchases of property, plant and equipment (67) (72) (191) (210)
Proceeds from divestitures and asset sales 30 3 53 34 Other 69 16
27 (32) Net cash flows - investing activities 32 (53) (111) (208)
Net change in short-term debt 202 173 488 356 Payments on long-term
debt - (5) (6) (239) Proceeds from long-term debt 6 6 - Dividends
paid (18) (17) (54) (53) Other (9) 3 (12) 16 Net cash flows -
financing activities 181 154 422 80 Net change in cash and cash
equivalents 56 (11) 88 (179) Net change in cash - discontinued
operations - - - 2 Cash and cash equivalents - beginning of period
651 498 619 664 Cash and cash equivalents - end of period $707 $487
$707 $487 Dana Corporation Condensed Consolidating Statement of
Income (Unaudited) (in millions) Three Months Ended September 30,
2005 Dana with DCC on Equity Elimination Dana Basis DCC Entries
Consolidated Net sales $2,396 $ $ $2,396 Other income (expense) (1)
19 (7) 11 2,395 19 (7) 2,407 Costs and expenses Cost of sales 2,293
(3) 2,290 Selling, general and administrative expenses 128 11 (3)
136 Impairment charges 290 290 Interest expense 34 9 (1) 42 2,745
20 (7) 2,758 Income (loss) before income taxes (350) (1) - (351)
Income tax benefit (expense) (932) 3 (929) Minority interest 1 1
Equity in earnings of affiliates 7 1 (3) 5 Income from continuing
operations (1,274) 3 (3) (1,274) Effect of change in accounting 2 2
Net income $(1,272) $ 3 $ (3) $(1,272) 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, 2005 Dana with DCC on
Equity Elimination Dana Basis DCC Entries Consolidated Net sales
$7,505 $ $ $7,505 Other income (expense) 41 49 (23) 67 7,546 49
(23) 7,572 Costs and expenses Cost of sales 7,083 (11) 7,072
Selling, general and administrative expenses 387 33 (7) 413
Impairment charges 290 290 Interest expense 102 28 (5) 125 7,862 61
(23) 7,900 Income (loss) before income taxes (316) (12) - (328)
Income tax benefit (expense) (946) 21 (925) Minority interest (5)
(5) Equity in earnings - of affiliates 35 7 (16) 26 Income from
continuing operations (1,232) 16 (16) (1,232) Effect of change in
accounting 6 - 6 Net income $(1,226) $ 16 $ (16) $(1,226) 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, 2004 (Restated) Dana with DCC on Equity Elimination
Dana Basis DCC Entries Consolidated Net sales $2,114 $ $ $2,114
Other income (expense) 23 (20) (11) (8) 2,137 (20) (11) 2,106 Costs
and expenses Cost of sales 1,970 (6) 1,964 Selling, general and
administrative expenses 115 11 (5) 121 Interest expense 42 11 53
2,127 22 (11) 2,138 Income before income taxes 10 (42) 0 (32)
Income tax benefit (expense) 29 54 83 Minority interest (3) (3)
Equity in earnings of affiliates 18 - (12) 6 Income from continuing
operations 54 12 (12) 54 Income from discontinued operations (12)
(12) Net income $ 42 $ 12 $ (12) $ 42 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 (Restated) Dana
with DCC on Equity Elimination Dana Basis DCC Entries Consolidated
Net sales $6,755 $ $ $6,755 Other income (expense) 37 26 (36) 27
6,792 26 (36) 6,782 Costs and expenses Cost of sales 6,205 (19)
6,186 Selling, general and administrative expenses 353 38 (16) 375
Interest expense 120 37 - 157 6,678 75 (35) 6,718 Income (loss)
before income taxes 114 (49) (1) 64 Income tax benefit (expense)
(7) 91 1 85 Minority interest (9) (9) Equity in earnings of
affiliates 67 4 (46) 25 Income from continuing operations 165 46
(46) 165 Income from discontinued operations 35 35 Net income $ 200
$ 46 $ (46) $ 200 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, 2005 Dana with DCC on Equity Elimination Dana Basis
DCC Entries Consolidated Current assets Cash and cash equivalents $
707 $ 23 $ $ 730 Accounts receivable Trade 1,454 1,454 Other 277
285 (288) 274 Inventories 878 878 Other current assets 123 183
(160) 146 Total current assets 3,439 491 (448) 3,482 Investment in
leases - 664 (408) 256 Investments and other assets 2,650 - (253)
2,397 Property, plant and equipment, net 1,690 8 44 1,742 Total
assets $7,779 $1,163 $(1,065) $7,877 Liabilities and Shareholders'
Equity Current liabilities Notes payable $2,157 $ 431 $(284) $2,304
Accounts payable 1,322 - 1,322 Other current liabilities 1,193 53
(164) 1,082 Total current liabilities 4,672 484 (448) 4,708
Long-term debt 225 55 280 Deferred employee benefits and other
noncurrent liabilities 1,742 305 (300) 1,747 Minority interest 83 2
85 Shareholders' equity 1,057 317 (317) 1,057 Total liabilities and
shareholders' equity $7,779 $1,163 $(1,065) $7,877 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, 2004
(Restated) Dana with DCC on Equity Elimination Dana Basis DCC
Entries Consolidated Assets Current assets Cash and cash
equivalents $ 619 $ 15 $ $ 634 Accounts receivable Trade 1,254
1,254 Other 437 208 (208) 437 Inventories 898 898 Other current
assets 170 137 (107) 200 Total current assets 3,378 360 (315) 3,423
Investment in leases 411 (130) 281 Investments and other assets
3,338 467 (661) 3,144 Property, plant and equipment, net 2,033 8
130 2,171 Total assets $8,749 $1,246 $(976) $9,019 Liabilities and
Shareholders' Equity Current liabilities Notes payable $289 $68
$(202) $155 Accounts payable 1,330 1,330 Other current liabilities
1,236 67 (115) 1,188 Total current liabilities 2,855 135 (317)
2,673 Long-term debt 1,611 443 2,054 Deferred employee benefits and
other noncurrent liabilities 1,752 311 (304) 1,759 Minority
interest 120 2 122 Shareholders' equity 2,411 355 (355) 2,411 Total
liabilities and shareholders' equity $8,749 $1,246 $(976) $9,019
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
(Unaudited) (in millions) Three Months Ended September 30, 2005
Dana with DCC on Equity Elimination Dana Basis DCC Entries
Consolidated Net income $(1,272) $ 3 $ (3) $(1,272) Depreciation
and amortization 60 4 - 64 Loss on divestitures and asset sales 19
- - 19 Effect of change in accounting (2) (2) Impairments 290 290
Working capital decrease (increase) 47 (46) 21 22 Deferred taxes
773 (10) - 763 Other (72) 34 3 (35) Net cash flows - operating
activities (157) (15) 21 (151) Purchases of property, plant and
equipment (67) (2) - (69) Payments received on leases and
partnerships - 32 - 32 Proceeds from Asset sales 30 9 - 39 Other 69
(31) - 38 Net cash flows - investing activities 32 8 - 40 Net
change in short-term debt 202 - (21) 181 Proceeds from long-term
debt 6 15 21 Payments on long-term debt - - - - Dividends paid (18)
- - (18) Other (9) - - (9) Net cash flows - financing activities
181 15 (21) 175 Net change in cash and cash equivalents 56 8 - 64
Cash and cash equivalents - beginning of period 651 15 - 666 Cash
and cash equivalents - end of period $707 $23 $ - $ 730 This
consolidating statement provides a reconciliation of the amounts
presented for Dana with Dana Credit Corporation (DCC) on an equity
basis to amounts presented for Dana Corporation on a fully
consolidated basis. Dana Corporation Consolidating Cash Flow
(Unaudited) (in millions) Nine Months Ended September 30, 2005 Dana
with DCC on Equity Elimination Dana Basis DCC Entries Consolidated
Net income $(1,226) $ 16 $ (16) $(1,226) Depreciation and
amortization 214 13 - 227 Loss on divestitures and asset sales 14 -
- 14 Effect of change in accounting (6) (6) Impairments 290 290
Working capital increase (170) (104) 81 (193) Deferred taxes 734
(6) - 728 Other (73) (27) (34) (134) Net cash flows - operating
activities (223) (108) 31 (300) Purchases of property, plant and
equipment (191) (2) (193) Payments received on leases and
partnerships - 70 - 70 Proceeds from Asset sales 53 122 - 175 Other
27 1 - 28 Net cash flows - investing activities (111) 191 - 80 Net
change in short-term debt 488 (1) (81) 406 Proceeds from long-term
debt 6 15 - 21 Payments on long-term debt (6) (39) - (45) Dividends
paid (54) (50) 50 (54) Other (12) (12) Net cash flows - financing
activities 422 (75) (31) 316 Net change in cash and cash
equivalents 88 8 - 96 Cash and cash equivalents - beginning of
period 619 15 - 634 Cash and cash equivalents - end of period $707
$ 23 $ - $730 This consolidating statement provides a
reconciliation of the amounts presented for Dana with Dana Credit
Corporation (DCC) on an equity basis to amounts presented for Dana
Corporation on a fully consolidated basis. Dana Corporation
Condensed Statement of Cash Flows (Unaudited) (in millions) Three
Months Ended September 30, 2004 (Restated) Dana with DCC on Equity
Elimination Dana Basis DCC Entries Consolidated Net income $ 42 $
12 $ (12) $ 42 Depreciation and amortization 84 6 - 90 Loss on
divestitures and asset sales (20) (12) - (32) Impairments 3 21 24
Working capital decrease (increase) (258) (141) 150 (249) Deferred
taxes (18) (13) - (31) Other 55 (16) 7 46 Net cash flows -
operating activities (112) (143) 145 (110) Purchases of property,
plant and equipment (72) (1) - (73) Payments received on leases and
partnerships - 2 - 2 Proceeds from Asset sales 3 163 - 166 Other 16
3 - 17 Net cash flows - investing activities (53) 165 - 112 Net
change in short-term debt 173 - (145) 28 Payments on long-term debt
(5) (96) - (101) Dividends paid (17) - - (17) Other 3 - - 3 Net
cash flows - financing activities 154 (96) (145) (87) Net change in
cash and cash equivalents (11) (74) - (85) Cash and cash
equivalents - beginning of period 498 99 - 597 Cash and cash
equivalents - end of period $487 $ 25 $ - $ 512 This consolidating
statement provides a reconciliation of the amounts presented for
Dana with Dana Credit Corporation (DCC) on an equity basis to
amounts presented for Dana Corporation on a fully consolidated
basis. Dana Corporation Condensed Statement of Cash Flows
(Unaudited) (in millions) Nine Months Ended September 30, 2004
(Restated) Dana with DCC on Equity Elimination Dana Basis DCC
Entries Consolidated Net income $ 200 $ 46 $ (46) $ 200
Depreciation and amortization 249 24 - 273 Loss on divestitures and
asset sales (23) (34) - (57) Impairments 3 21 24 Working capital
decrease (increase) (386) (142) 150 (378) Deferred taxes (68) (4) -
(72) Other (26) (62) 41 (47) Net cash flows - operating activities
(51) (151) 145 (57) Purchases of property, plant and equipment
(210) (7) 3 (214) Payments received on leases and partnerships 10 -
10 Proceeds from Asset sales 34 287 (3) 318 Other (32) 10 - (22)
Net cash flows - investing activities (208) 300 - 92 Net change in
short-term debt 356 (30) (145) 181 Proceeds from long-term debt - 5
5 Payments on long-term debt (239) (166) - (405) Dividends paid
(53) - - (53) Other 16 - - 16 Net cash flows - financing activities
80 (191) (145) (256) Net change in cash and cash equivalents (179)
(42) - (221) Net change in cash - discontinued operations 2 2 Cash
and cash equivalents - beginning of period 665 66 - 731 Cash and
cash equivalents - end of period $ 488 $ 24 $ - $512 This
consolidating statement provides a reconciliation of the amounts
presented for Dana with Dana Credit Corporation (DCC) on an equity
basis to amounts presented for Dana Corporation on a fully
consolidated basis. Three Months Ended September 30, Inter- Net
External Segment Operating Profit 2005 Sales Sales EBIT PAT (Loss)
ASG $1,745 $39 $41 $29 $(13) HVTSG 642 2 16 10 (9) DCC 3 3 Other 9
12 (75) (105) (44) Total operations 2,396 53 (18) (63) (63)
Valuation adjustment against deferred tax asset (920) (920) Effect
of change in accounting 2 2 Unusual items excluded from performance
measures (306) (291) (291) Consolidated $2,396 $53 $(324) $(1,272)
$(1,272) 2004 - Restated ASG $1,534 $49 $65 $44 $9 HVTSG 559 1 41
26 10 DCC 4 4 Other 21 15 (65) (34) 17 Total continuing operations
2,114 65 41 40 40 Discontinued operations 29 17 17 Unusual items
excluded from performance measures (6) (15) (15) Consolidated
$2,114 $65 $64 $42 $42 Nine Months Ended September 30, Inter- Net
External Segment Operating Profit 2005 Sales Sales EBIT PAT (Loss)
ASG $5,467 $110 $179 $128 $14 HVTSG 2,014 4 81 50 (3) DCC 12 12
Other 24 42 (201) (210) (43) Total operations 7,505 156 59 (20)
(20) Valuation adjustment against deferred tax asset (920) (920)
Effect of change in accounting 6 6 Unusual items excluded from
performance measures (297) (292) (292) Consolidated $7,505 $156
$(238) $(1,226) $(1,226) 2004 - Restated ASG $4,966 $141 $270 $184
$85 HVTSG 1,719 3 125 77 34 DCC 16 16 Other 70 48 (174) (145) (3)
Total continuing operations 6,755 192 221 132 132 Discontinued
operations 86 48 48 Unusual items excluded from performance
measures (15) 20 20 Consolidated $6,755 $192 $292 $200 $200 Three
Months Ended September 30, Inter- Net External Segment Operating
Profit 2005 Sales Sales EBIT PAT (Loss) North America $1,476 $33
$(38) $(28) $(58) Europe 452 30 31 22 12 South America 259 61 33 20
15 Asia Pacific 209 12 19 12 7 DCC 3 3 Other (63) (92) (42) Total
operations 2,396 136 (18) (63) (63) Valuation adjustment to
deferred tax asset (920) (920) Effect of change in accounting 2 2
Unusual items excluded from performance measures (306) (291) (291)
Consolidated $2,396 $136 $(324) $(1,272) $(1,272) 2004 - Restated
North America $1,382 $33 $15 $9 $(15) Europe 397 23 30 22 15 South
America 172 56 28 17 14 Asia Pacific 163 14 9 6 2 DCC 4 4 Other
(41) (18) 20 Total continuing operations 2,114 126 41 40 40
Discontinued operations 29 17 17 Unusual items excluded from
performance measures (6) (15) (15) Consolidated $2,114 $126 $64 $42
$42 Nine Months Ended September 30, Inter- Net External Segment
Operating Profit 2005 Sales Sales EBIT PAT (Loss) North America
$4,687 $93 $(23) $(18) $(105) Europe 1,507 91 118 82 54 South
America 713 187 87 54 41 Asia Pacific 598 37 51 33 20 DCC 12 12
Other (174) (183) (42) Total operations 7,505 408 59 (20) (20)
Valuation adjustment against net deferred tax assets (920) (920)
Effect of change in accounting 6 6 Unusual items excluded from
performance measures (297) (292) (292) Consolidated $7,505 $408
$(238) $(1,226) $(1,226) 2004 - Restated North America $4,553 $100
$166 $103 $23 Europe 1,255 74 94 67 44 South America 454 150 73 45
37 Asia Pacific 493 38 32 21 9 DCC 16 16 Other (144) (120) 3 Total
continuing operations 6,755 362 221 132 132 Discontinued operations
86 48 48 Unusual items excluded from performance measures (15) 20
20 Consolidated $6,755 $362 $292 $200 $200 FCMN Contact:
michelle.hards@dana.com
http://www.newscom.com/cgi-bin/prnh/19990903/DANADATASOURCE: Dana
Corporation CONTACT: Investor Relations: Michelle L. Hards,
+1-419-535-4636, , or Media Relations: Todd M. Romain,
+1-419-535-4727, , both of Dana Corporation Web site:
http://www.dana.com/ Company News On-Call:
http://www.prnewswire.com/comp/226839.html
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