Dana Corporation Reports Third-Quarter Earnings TOLEDO, Ohio, Oct.
20 /PRNewswire-FirstCall/ -- Dana Corporation (NYSE:DCN) 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. (Logo:
http://www.newscom.com/cgi-bin/prnh/19990903/DANA ) 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/ . Forward-Looking Statements Certain
statements contained in this release 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. Forward-looking
statements are inherently subject to risks and uncertainties.
Dana's actual results could differ materially from those that are
anticipated or projected due to a number of factors. These factors
include national and international economic conditions; adverse
effects from terrorism or hostilities; the strength of other
currencies relative to the U.S. dollar; increases in commodity
costs, including steel, that cannot be recouped in product pricing;
the ability of our customers and suppliers to achieve their
projected sales and production levels; competitive pressures on our
sales and pricing; the continued success of our cost reduction and
cash management programs and of our long-term transformation
strategy for the company; the success and timing of the divestiture
of the automotive aftermarket business; and other factors set out
in our public filings with the Securities and Exchange Commission.
Dana does not undertake to update any forward-looking statements in
this release. 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/ ). FOR
MORE INFORMATION ( http://www.dana.com/ ) - Dial-For-Dana U.S. or
Canada 800-537-8823; OH 800-472-8810 E-Mail or Dana Investor
Relations 419-535-4635
http://www.newscom.com/cgi-bin/prnh/19990903/DANA
http://photoarchive.ap.org/ DATASOURCE: Dana Corporation CONTACT:
Michelle L. Hards of Dana Corporation, +1-419-535-4636, or Web
site: http://www.dana.com/ Company News On-Call:
http://www.prnewswire.com/comp/226839.html
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