DCN Dana Cp

Dana Corporation Reports Second-Quarter Results TOLEDO, Ohio, July 20 /PRNewswire-FirstCall/ -- Dana Corporation (NYSE:DCN) today reported financial results for the second quarter of 2005, which showed significant improvement over results for the first three months of the year. Second-quarter highlights included: - Sales of $2.6 billion were up 6 percent from the first quarter of 2005; - The addition of $215 million in net new business for the years 2005 to 2007 raised total net new business for this period to $1.3 billion; - Higher sales and cost savings drove operating profit improvements of 53 percent in the Automotive Systems Group and 48 percent in the Heavy Vehicle Technologies and Systems Group; and - Net income, exclusive of unusual items, increased to $53 million, or 35 cents per share, compared to $18 million, or 12 cents per share, during the first three months of 2005. Unusual items in the second quarter included a net charge of $5 million related to enactment of new Ohio tax legislation and a $3 million net gain from the sale of certain Dana Credit Corporation (DCC) assets. With these unusual items, net income totaled $51 million, or 34 cents per share. (Logo: http://www.newscom.com/cgi-bin/prnh/20050526/CLTH003) "In the face of continuing industry-wide challenges, Dana people have made significant progress in strengthening our company," said Dana Chairman and CEO Mike Burns. "Specifically, our lean manufacturing and value engineering programs are delivering tangible results as evidenced by the substantial profit improvement from last quarter. "Our cost reduction and efficiency programs are essential. But equally important to achieving our goals is our aggressive pursuit of steady top-line growth," Mr. Burns said. "To this end, we are extremely pleased to report that we have added another $215 million in the second quarter to our increasingly strong -- and diverse -- book of new business." Second-Quarter Results Second-quarter sales in 2005 were $2.6 billion, compared to $2.3 billion during the same period last year. Earnings from continuing operations for the quarter, excluding unusual items, totaled $53 million, or 35 cents per share, compared to $59 million, or 39 cents per share, on a similar basis during the second quarter of 2004. Net unusual charges for the second quarter of 2005 totaled $2 million. This amount included a net charge of $5 million resulting from a change in the basis of Ohio corporate taxation enacted on June 30. The accounting treatment of this change impacted the company's deferred tax assets. This charge was partially offset by a $3 million gain from the company's ongoing divestiture of DCC leasing assets. The second quarter of 2004 included net unusual gains of $33 million associated with the sale of DCC assets and a tax benefit that we expected to realize on the sale of the automotive aftermarket operations that was completed in November 2004. Reported second-quarter 2004 net income, including net unusual gains, totaled $110 million, or 73 cents per share. Business Unit Performance The Heavy Vehicle Technologies and Systems Group continued to benefit from the strong commercial and off-highway markets. Its sales grew by 21 percent in the second quarter compared to the same period last year. Currency translation added $11 million to the group's sales for the second quarter of 2005. Automotive Systems Group sales for the second quarter of 2005 were up 10 percent versus the same period last year, with currency translation contributing $62 million. Heavy Vehicle profits were up 19 percent compared to the second quarter of 2004, while Automotive Systems profits were down 15 percent over the same period. Second-quarter profits - particularly those of the Automotive Systems Group - were negatively impacted by approximately $27 million, after tax and net of customer recoveries, in additional steel costs Dana incurred compared to the second quarter of 2004. Additionally, 2005 profit after tax for the Heavy Vehicle group was favorably impacted by $4 million related to a decrease in the group's liability for warranty to reflect lower average claims costs. 2005 First-Half Results Dana's six-month consolidated sales for 2005 were $5.1 billion. Income from continuing operations for the first half of 2005, excluding unusual items, was $71 million, or 47 cents per share. Including a net charge of $2 million for unusual items, net income for the six months was $69 million, or 46 cents per share. In comparison, Dana's six-month consolidated sales for the first half of 2004 totaled $4.6 billion and income from continuing operations, excluding unusual items, was $109 million, or 72 cents per share. In this period, Dana reported income from discontinued operations of $48 million, or 32 cents per share, representing the automotive aftermarket businesses divested in November 2004. The $48 million included a $20 million tax benefit expected to be realized on the divestiture and a $3 million charge for divestiture-related expenses. Also during the first half of 2004, the company reported gains on the sale of DCC assets totaling $18 million. Including unusual items, net income for the first half of 2004 was $175 million. Looking Ahead "We are encouraged by the profit improvement we've achieved since last quarter," Mr. Burns said. "And we believe there is considerable opportunity to achieve additional cost savings and process efficiencies as our efforts gain more momentum. "Production schedules for North American heavy trucks continue to be stronger than expected and, as a result, we are raising our estimate for full- year 2005 production to 310,000 units from 293,000 units. The off-highway market segments we serve are also expected to remain strong for the rest of the year," he said. "We're also expecting to benefit from subsiding steel costs, which will be particularly important to the Automotive Systems Group. "However," Mr. Burns continued, "given the uncertainty surrounding North American light vehicle production in the second half of the year, we are lowering our 2005 production forecast to 15.5 million units from 15.7 million units. We are also concerned about the possible impact on sales if the dollar continues to gain strength. As a result, our earnings expectations for the full year remain unchanged at a range of $1.30 to $1.45 per share." Quarterly Conference Call Scheduled Today at 1 p.m. Dana will discuss its second-quarter results in a conference call at 1 p.m. (ET) today. The call may be accessed via Dana's web site (http://www.dana.com/), where it will be accompanied by a 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 5 p.m. today. To access this recording, please dial (800) 537-8823. A webcast replay of the call will also be available after 5 p.m. today and will be accessible via the Dana web site. 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 $9.1 billion in 2004. 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; our ability and that of our customers to achieve projected sales and production levels; the continued availability of necessary goods and services from our suppliers; competitive pressures on our sales and pricing; the success of our cost reduction, cash management, and long-term transformation programs, and our U.S. tax loss carryforward utilization strategies, 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 June 30 2005 2004 Sales $2,632 $2,331 Income from continuing operations $51 $75 Income from discontinued operations 35 Net income $51 $110 Income from continuing operations $51 $75 Net gains associated with DCC asset sales (3) (16) Charge related to Ohio tax legislation 5 Income from continuing operations, excluding unusual items $53 $59 Income from discontinued operations $- $35 Anticipated tax benefit related to sale of automotive aftermarket business (20) Charges related to sales of discontinued operations 3 Income from discontinued operations, excluding unusual items $- $18 Diluted earnings per share: Income from continuing operations $0.34 $0.50 Income from discontinued operations 0.23 Net income $0.34 $0.73 Income from continuing operations, excluding unusual items $0.35 $0.39 Income from discontinued operations, excluding unusual items 0.12 Net income, excluding unusual items 0.35 0.51 Unusual items (0.01) 0.22 Net income $0.34 $0.73 Dana Corporation Financial Summary (Unaudited) (in millions, except per share amounts) Six Months Ended June 30 2005 2004 Sales $5,120 $4,642 Income from continuing operations $69 $127 Income from discontinued operations 48 Net income $69 $175 Income from continuing operations $69 $127 Net gains associated with DCC asset sales (3) (18) Charge related to Ohio tax legislation 5 Income from continuing operations, excluding unusual items $71 $109 Income from discontinued operations $- $48 Anticipated tax benefit related to sale of automotive aftermarket business (20) Charges related to sale of discontinued operations 3 Income from discontinued operations, excluding unusual items $- $31 Diluted earnings per share: Income from continuing operations $0.46 $0.84 Income from discontinued operations 0.32 Net income $0.46 $1.16 Income from continuing operations, excluding unusual items $0.47 $0.72 Income from discontinued operations, excluding unusual items 0.21 Net income, excluding unusual items 0.47 0.93 Unusual items (0.01) 0.23 Net income $0.46 $1.16 Dana Corporation Condensed Statement of Income (Unaudited) (in millions, except per share amounts) Three Months Ended June 30 2005 2004 Net sales $2,632 $2,331 Revenue from lease financing and other income 25 25 2,657 2,356 Costs and expenses Cost of sales 2,428 2,101 Selling, general and administrative expenses 136 124 Interest expense 40 51 2,604 2,276 Income before income taxes 53 80 Income tax expense (10) (6) Minority interest (3) (3) Equity in earnings of affiliates 11 4 Income from continuing operations 51 75 Income from discontinued operations 35 Net income $51 $110 Basic earnings per share Income from continuing operations $0.34 $0.51 Income from discontinued operations 0.23 Net income $0.34 $0.74 Diluted earnings per share Income from continuing operations $0.34 $0.50 Income from discontinued operations 0.23 Net income $0.34 $0.73 Average shares outstanding - For Basic EPS 150 149 For Diluted EPS 151 151 Dana Corporation Condensed Statement of Income (Unaudited) (in millions, except per share amounts) Six Months Ended June 30 2005 2004 Net sales $5,120 $4,642 Revenue from lease financing and other income 57 39 5,177 4,681 Costs and expenses Cost of sales 4,753 4,206 Selling, general and administrative expenses 274 258 Interest expense 83 102 5,110 4,566 Income before income taxes 67 115 Income tax expense (10) (3) Minority interest (6) (6) Equity in earnings of affiliates 18 21 Income from continuing operations 69 127 Income from discontinued operations 48 Net income $69 $175 Basic earnings per share Income from continuing operations $0.46 $0.86 Income from discontinued operations 0.32 Net income $0.46 $1.18 Diluted earnings per share Income from continuing operations $0.46 $0.84 Income from discontinued operations 0.32 Net income $0.46 $1.16 Average shares outstanding - For Basic EPS 150 148 For Diluted EPS 151 150 Dana Corporation Condensed Balance Sheet (Unaudited) (in millions) June 30 December 31 Assets 2005 2004 Current assets Cash and cash equivalents $666 $634 Accounts receivable Trade 1,478 1,266 Other 295 444 Inventories 920 907 Other current assets 276 217 Total current assets 3,635 3,468 Investment in leases 246 281 Investments and other assets 3,037 3,145 Property, plant and equipment, net 1,998 2,153 Total assets $8,916 $9,047 Liabilities and Shareholders' Equity Current liabilities Notes payable $409 $155 Accounts payable 1,356 1,317 Other current liabilities 1,006 1,217 Total current liabilities 2,771 2,689 Long-term debt 1,979 2,054 Deferred employee benefits and other noncurrent liabilities 1,677 1,746 Minority interest 131 123 Shareholders' equity 2,358 2,435 Total liabilities and shareholders' equity $8,916 $9,047 Dana Corporation Condensed Statement of Cash Flows (Unaudited) (in millions) Three Months Ended June 30 2005 2004 Net income $51 $110 Depreciation and amortization 80 90 Gain on divestitures and asset sales (4) (21) Working capital decrease (increase) (21) 58 Deferred taxes (23) (46) Other (47) (74) Net cash flows - operating activities 36 117 Purchases of property, plant and equipment (62) (63) Payments received on leases and loans 1 4 Asset sales 102 52 Other (17) (41) Net cash flows - investing activities 24 (48) Net change in short-term debt 61 38 Payments on long-term debt (25) (45) Dividends paid (18) (18) Other (2) 5 Net cash flows - financing activities 16 (20) Net change in cash and cash equivalents 76 49 Net change in cash - discontinued operations 2 Cash and cash equivalents - beginning of period 590 546 Cash and cash equivalents - end of period $666 $597 Dana Corporation Condensed Statement of Cash Flows (Unaudited) (in millions) Six Months Ended June 30 2005 2004 Net income $69 $175 Depreciation and amortization 163 183 Gain on divestitures and asset sales (5) (25) Working capital increase (287) (164) Deferred taxes (35) (41) Other (72) (73) Net cash flows - operating activities (167) 55 Purchases of property, plant and equipment (132) (142) Payments received on leases and loans 5 8 Payments received from DCC partnerships 64 15 Asset sales 137 155 Other (16) (55) Net cash flows - investing activities 58 (19) Net change in short-term debt 225 153 Proceeds from long-term debt 5 Payments on long-term debt (45) (304) Dividends paid (36) (36) Other (3) 10 Net cash flows - financing activities 141 (172) Net change in cash and cash equivalents 32 (136) Net change in cash - discontinued operations 2 Cash and cash equivalents - beginning of period 634 731 Cash and cash equivalents - end of period $666 $597 Dana Corporation (Including Dana Credit Corporation on an Equity Basis) Condensed Statement of Income (Unaudited) (in millions) Three Months Ended June 30 2005 2004 Net sales $2,632 $2,331 Other income 25 13 2,657 2,344 Costs and expenses Cost of sales 2,432 2,108 Selling, general and administrative expenses 126 123 Interest expense 33 39 2,591 2,270 Income before income taxes 66 74 Income tax expense (27) (27) Minority interest (3) (3) Equity in earnings of affiliates 15 31 Income from continuing operations 51 75 Income from discontinued operations 35 Net income $51 $110 Dana Corporation (Including Dana Credit Corporation on an Equity Basis) Condensed Statement of Income (Unaudited) (in millions) Six Months Ended June 30 2005 2004 Net sales $5,120 $4,642 Other income 43 20 5,163 4,662 Costs and expenses Cost of sales 4,762 4,222 Selling, general and administrative expenses 257 243 Interest expense 67 77 5,086 4,542 Income before income taxes 77 120 Income tax expense (27) (38) Minority interest (6) (6) Equity in earnings of affiliates 25 51 Income from continuing operations 69 127 Income from discontinued operations 48 Net income $69 $175 Dana Corporation (Including Dana Credit Corporation on an Equity Basis) Condensed Balance Sheet (Unaudited) (in millions) June 30 December 31 Assets 2005 2004 Current assets Cash and cash equivalents $651 $619 Accounts receivable Trade 1,478 1,266 Other 295 445 Inventories 920 907 Other current assets 256 192 Total current assets 3,600 3,429 Investments and other assets 3,245 3,337 Property, plant and equipment, net 1,943 2,015 Total assets $8,788 $8,781 Liabilities and Shareholders' Equity Current liabilities Notes payable $572 $289 Accounts payable 1,356 1,317 Other current liabilities 1,096 1,269 Total current liabilities 3,024 2,875 Long-term debt 1,606 1,611 Deferred employee benefits and other noncurrent liabilities 1,671 1,739 Minority interest 129 121 Shareholders' equity 2,358 2,435 Total liabilities and shareholders' equity $8,788 $8,781 Dana Corporation (Including Dana Credit Corporation on an Equity Basis) Cash Flow Impact on Net Debt (Unaudited) (in millions) Three Months Ended June 30 2005 2004 Sources Net income $51 $110 Depreciation 75 82 Asset sales 4 19 Working capital decrease (increase) (12) 65 Other 16 - 134 276 Uses Capital spend (62) (63) Dividends (18) (18) Restructuring cash payments (15) (26) Deferred taxes (9) (54) Net changes in other accounts (11) (109) (115) (270) Cash change in net debt $19 $6 Dana Corporation (Including Dana Credit Corporation on an Equity Basis) Cash Flow Impact on Net Debt (Unaudited) (in millions) Six Months Ended June 30 2005 2004 Sources Net income $69 $175 Depreciation 153 165 Asset sales 23 33 Working capital increase (262) (115) (17) 258 Uses Capital spend (132) (139) Dividends (36) (36) Restructuring cash payments (23) (49) Deferred taxes (39) (50) Net changes in other accounts (1) (101) (231) (375) Cash change in net debt $(248) $(117) Dana Corporation Condensed Consolidating Statement of Income (Unaudited) (in millions) Three Months Ended June 30, 2005 Dana with DCC on Elimination Dana Equity Basis DCC Entries Consolidated Net sales $2,632 $ $ $2,632 Other income (expense) 25 8 (8) 25 2,657 8 (8) 2,657 Costs and expenses Cost of sales 2,432 (4) 2,428 Selling, general and administrative expenses 126 12 (2) 136 Interest expense 33 9 (2) 40 2,591 21 (8) 2,604 Income (loss) before income taxes 66 (13) - 53 Income tax benefit (expense) (27) 17 (10) Minority interest (3) (3) Equity in earnings of affiliates 15 1 (5) 11 Income from continuing operations 51 5 (5) 51 Net income $51 $5 $(5) $51 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) Six Months Ended June 30, 2005 Dana with DCC on Elimination Dana Equity Basis DCC Entries Consolidated Net sales $5,120 $ $ $5,120 Other income (expense) 43 31 (17) 57 5,163 31 (17) 5,177 Costs and expenses Cost of sales 4,762 (9) 4,753 Selling, general and administrative expenses 257 22 (5) 274 Interest expense 67 19 (3) 83 5,086 41 (17) 5,110 Income (loss) before income taxes 77 (10) - 67 Income tax benefit (expense) (27) 17 (10) Minority interest (6) (6) Equity in earnings of affiliates 25 6 (13) 18 Income from continuing operations 69 13 (13) 69 Net income $69 $13 $(13) $69 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 June 30, 2004 Dana with DCC on Elimination Dana Equity Basis DCC Entries Consolidated Net sales $2,331 $ $ $2,331 Other income (expense) 13 24 (12) 25 2,344 24 (12) 2,356 Costs and expenses Cost of sales 2,108 (7) 2,101 Selling, general and administrative expenses 123 6 (5) 124 Interest expense 39 12 51 2,270 18 (12) 2,276 Income before income taxes 74 6 - 80 Income tax benefit (expense) (27) 21 (6) Minority interest (3) (3) Equity in earnings of affiliates 31 (2) (25) 4 Income from continuing operations 75 25 (25) 75 Income from discontinued operations 35 35 Net income $110 $25 $(25) $110 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) Six Months Ended June 30, 2004 Dana with DCC on Elimination Dana Equity Basis DCC Entries Consolidated Net sales $4,642 $ $ $4,642 Other income (expense) 20 46 (27) 39 4,662 46 (27) 4,681 Costs and expenses Cost of sales 4,222 (16) 4,206 Selling, general and administrative expenses 243 26 (11) 258 Interest expense 77 25 102 4,542 51 (27) 4,566 Income (loss) before income taxes 120 (5) - 115 Income tax benefit (expense) (38) 35 (3) Minority interest (6) (6) Equity in earnings of affiliates 51 4 (34) 21 Income from continuing operations 127 34 (34) 127 Income from discontinued operations 48 48 Net income $175 $34 $(34) $175 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) June 30, 2005 Dana with DCC on Elimination Dana Assets Equity Basis DCC Entries Consolidated Current assets Cash and cash equivalents $651 $15 $ $666 Accounts receivable Trade 1,478 1,478 Other 295 268 (268) 295 Inventories 920 920 Other current assets 256 172 (152) 276 Total current assets 3,600 455 (420) 3,635 Investment in leases 293 (47) 246 Investments and other assets 3,245 400 (608) 3,037 Property, plant and equipment, net 1,943 8 47 1,998 Total assets $8,788 $1,156 $(1,028) $8,916 Liabilities and Shareholders' Equity Current liabilities Notes payable $572 $98 $(261) $409 Accounts payable 1,356 1,356 Other current liabilities 1,096 69 (159) 1,006 Total current liabilities 3,024 167 (420) 2,771 Long-term debt 1,606 373 1,979 Deferred employee benefits and other noncurrent liabilities 1,671 305 (299) 1,677 Minority interest 129 2 131 Shareholders' equity 2,358 309 (309) 2,358 Total liabilities and shareholders' equity $8,788 $1,156 $(1,028) $8,916 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 Dana with DCC on Elimination Dana Assets Equity Basis DCC Entries Consolidated Current assets Cash and cash equivalents $619 $15 $ $634 Accounts receivable Trade 1,266 1,266 Other 445 208 (209) 444 Inventories 907 907 Other current assets 192 137 (112) 217 Total current assets 3,429 360 (321) 3,468 Investment in leases 411 (130) 281 Investments and other assets 3,337 467 (659) 3,145 Property, plant and equipment, net 2,015 8 130 2,153 Total assets $8,781 $1,246 $(980) $9,047 Liabilities and Shareholders' Equity Current liabilities Notes payable $289 $68 $(202) $155 Accounts payable 1,317 1,317 Other current liabilities 1,269 67 (119) 1,217 Total current liabilities 2,875 135 (321) 2,689 Long-term debt 1,611 443 2,054 Deferred employee benefits and other noncurrent liabilities 1,739 316 (309) 1,746 Minority interest 121 2 123 Shareholders' equity 2,435 350 (350) 2,435 Total liabilities and shareholders' equity $8,781 $1,246 $(980) $9,047 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 June 30, 2005 Dana with DCC on Elimination Dana Equity Basis DCC Entries Consolidated Sources Net income $51 $5 $(5) $51 Depreciation 75 5 80 Asset sales 4 98 102 Working capital decrease (increase) (12) 6 - (6) Other 16 (48) (38) (70) 134 66 (43) 157 Uses Capital spend (62) (62) Dividends (18) (50) 50 (18) Restructuring cash payments (15) (15) Deferred taxes (9) (14) (23) Net changes in other accounts (11) 13 (1) 1 (115) (51) 49 (117) Cash change in net debt $19 $15 $6 $40 Analysis of components of decrease in net debt: Net change in short-term debt $68 $(1) $(6) $61 Net payments on long-term debt (25) (25) Change in cash - continuing operations (87) 11 (76) Cash change in net debt (19) (15) (6) (40) Non-cash changes in net debt 2 (1) 1 Total change in net debt $(17) $(16) $(6) $(39) 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 Impact on Net Debt (Unaudited) (in millions) Six Months Ended June 30, 2005 Dana with DCC on Elimination Dana Equity Basis DCC Entries Consolidated Sources Net income $69 $13 $(13) $69 Depreciation 153 10 163 Asset sales 23 109 132 Working capital decrease (increase) (262) (2) (264) Other 19 (36) 23 6 2 94 10 106 Uses Capital spend (132) (132) Dividends (36) (50) 50 (36) Restructuring cash payments (23) (23) Deferred taxes (39) 4 (35) Payments received from DCC partnerships - 64 64 Net changes in other accounts (20) (107) - (127) (250) (89) 50 (289) Cash change in net debt $(248) $5 $60 $(183) Analysis of components of increase (decrease) in net debt: Net change in short-term debt $286 $(1) $(60) $225 Net payments on long-term debt (6) (39) (45) Change in cash - continuing operations (32) (32) Cash change in net debt 248 (40) (60) 148 Non-cash changes in net debt (2) (2) Total change in net debt $246 $(40) $(60) $146 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 Impact on Net Debt (Unaudited) (in millions) Three Months Ended June 30, 2004 Dana with DCC on Elimination Dana Equity Basis DCC Entries Consolidated Sources Net income $110 $25 $(25) $110 Depreciation 82 8 90 Asset sales 19 36 (3) 52 Working capital decrease 65 7 12 84 276 76 (16) 336 Uses Capital spend (63) (3) 3 (63) Dividends (18) (18) Realignment cash payments (26) (26) Deferred taxes (54) 8 (46) Net changes in other accounts (109) (29) 13 (125) (270) (24) 16 (278) Cash change in net debt $6 $52 $- $58 Analysis of components of decrease in net debt: Net change in short-term debt $38 $- $ $38 Net payments on long-term debt 3 (48) (45) Change in cash - continuing operations (47) (4) (51) Cash change in net debt (6) (52) - (58) Non-cash changes in net debt (49) - (49) Total change in net debt $(55) $(52) $- $(107) 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 Impact on Net Debt (Unaudited) (in millions) Six Months Ended June 30, 2004 Dana with DCC on Elimination Dana Equity Basis DCC Entries Consolidated Sources Net income $175 $34 $(34) $175 Depreciation 165 18 183 Asset sales 33 125 (3) 155 Working capital decrease (increase) (115) (1) 1 (115) Other - - - - 258 176 (36) 398 Uses Capital spend (139) (6) 3 (142) Dividends (36) (36) Restructuring cash payments (49) (49) Deferred taxes (50) 9 (41) Net changes in other accounts (101) (52) 33 (120) (375) (49) 36 (388) Cash change in net debt $(117) $127 $- $10 Analysis of components of increase (decrease) in net debt: Net change in short-term debt $183 $(30) $ $153 Net payments on long-term debt (234) (65) (299) Change in cash - continuing operations 166 (32) 134 Change in cash - discontinued 2 2 Cash change in net debt 117 (127) - (10) Non-cash changes in net debt (33) (27) (60) Total change in net debt $84 $(154) $- $(70) 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. Investor Relations Dana Corporation Quarterly Financial Information (Unaudited) For the Three Months Ended June 30, 2005 (in millions) Inter-Segment External Sales Sales 05 04 05 04 Automotive Systems Group $1,914 $1,719 $34 $47 Heavy Vehicle Technologies and Systems Group 711 588 1 1 Dana Commercial Credit Other 7 24 16 16 Continuing Operations 2,632 2,331 51 64 Discontinued Operations Unusual Items Excluded from Performance Measurement Consolidated $2,632 $2,331 $51 $64 North America $1,635 $1,577 $27 $25 Europe 553 442 34 31 South America 245 153 66 50 Asia Pacific 199 159 2 13 Dana Commercial Credit Other Continuing Operations 2,632 2,331 129 119 Discontinued Operations Unusual Items Excluded from Performance Measurement Consolidated $2,632 $2,331 $129 $119 Information for Discontinued Operations 557 5 Investor Relations Dana Corporation Quarterly Financial Information (Unaudited) For the Three Months Ended June 30, 2005 (in millions) EBIT Operating PAT 05 04 05 04 Automotive Systems Group $85 $109 $61 $72 Heavy Vehicle Technologies and Systems Group 59 51 37 31 Dana Commercial Credit 3 5 Other (61) (46) (48) (49) Continuing Operations 83 114 53 59 Discontinued Operations 30 18 Unusual Items Excluded from Performance Measurement 9 (8) (2) 33 Consolidated $92 $136 $51 $110 North America $32 $80 $21 $48 Europe 54 37 38 26 South America 34 27 21 17 Asia Pacific 18 10 11 7 Dana Commercial Credit 3 5 Other (55) (40) (41) (44) Continuing Operations 83 114 53 59 Discontinued Operations 30 18 Unusual Items Excluded from Performance Measurement 9 (8) (2) 33 Consolidated $92 $136 $51 $110 Information for Discontinued Operations Investor Relations Dana Corporation Quarterly Financial Information (Unaudited) For the Three Months Ended June 30, 2005 (in millions) Net Profit Net Assets 05 04 05 04 Automotive Systems Group $25 $44 $3,121 $2,986 Heavy Vehicle Technologies and Systems Group 20 18 779 632 Dana Commercial Credit 3 5 309 325 Other 5 (8) (102) (61) Continuing Operations 53 59 4,107 3,882 Discontinued Operations 18 Unusual Items Excluded from Performance Measurement (2) 33 Consolidated $51 $110 $4,107 $3,882 North America $(8) $24 $2,382 $2,206 Europe 29 19 1,145 1,096 South America 17 14 430 327 Asia Pacific 7 3 190 159 Dana Commercial Credit 3 5 309 325 Other 5 (6) (349) (231) Continuing Operations 53 59 4,107 3,882 Discontinued Operations 18 Unusual Items Excluded from Performance Measurement (2) 33 Consolidated $51 $110 $4,107 $3,882 Information for Discontinued Operations 962 Investor Relations Dana Corporation Quarterly Financial Information (Unaudited) For the Six Months Ended June 30, 2005 (in millions) Inter-Segment External Sales Sales 05 04 05 04 Automotive Systems Group $3,724 $3,431 $71 $92 Heavy Vehicle Technologies and Systems Group 1,381 1,161 2 2 Dana Commercial Credit Other 15 50 30 32 Continuing Operations 5,120 4,642 103 126 Discontinued Operations Unusual Items Excluded from Performance Measurement Consolidated $5,120 $4,642 $103 $126 North America $3,221 $3,171 $54 $52 Europe 1,085 880 76 61 South America 454 283 125 94 Asia Pacific 360 308 7 14 Dana Commercial Credit Other Continuing Operations 5,120 4,642 262 221 Discontinued Operations Unusual Items Excluded from Performance Measurement Consolidated $5,120 $4,642 $262 $221 Information for Discontinued Operations 1,067 9 Investor Relations Dana Corporation Quarterly Financial Information (Unaudited) For the Six Months Ended June 30, 2005 (in millions) EBIT Operating PAT 05 04 05 04 Automotive Systems Group $144 $212 $101 $143 Heavy Vehicle Technologies and Systems Group 99 91 62 55 Dana Commercial Credit 9 12 Other (120) (106) (101) (101) Continuing Operations 123 197 71 109 Discontinued Operations 55 31 Unusual Items Excluded from Performance Measurement 7 (9) (2) 35 Consolidated $130 $243 $69 $175 North America $56 $163 $33 $102 Europe 92 67 64 48 South America 56 45 35 28 Asia Pacific 28 18 18 12 Dana Commercial Credit 9 12 Other (109) (96) (88) (93) Continuing Operations 123 197 71 109 Discontinued Operations 55 31 Unusual Items Excluded from Performance Measurement 7 (9) (2) 35 Consolidated $130 $243 $69 $175 Information for Discontinued Operations Investor Relations Dana Corporation Quarterly Financial Information (Unaudited) For the Six Months Ended June 30, 2005 (in millions) Net Profit Net Assets 05 04 05 04 Automotive Systems Group $30 $84 $3,121 $2,986 Heavy Vehicle Technologies and Systems Group 28 28 779 632 Dana Commercial Credit 9 12 309 325 Other 4 (15) (102) (61) Continuing Operations 71 109 4,107 3,882 Discontinued Operations 31 Unusual Items Excluded from Performance Measurement (2) 35 Consolidated $69 $175 $4,107 $3,882 North America $(24) $49 $2,382 $2,206 Europe 45 33 1,145 1,096 South America 27 23 430 327 Asia Pacific 10 5 190 159 Dana Commercial Credit 9 12 309 325 Other 4 (13) (349) (231) Continuing Operations 71 109 4,107 3,882 Discontinued Operations 31 Unusual Items Excluded from Performance Measurement (2) 35 Consolidated $69 $175 $4,107 $3,882 Information for Discontinued Operations 962 http://www.newscom.com/cgi-bin/prnh/20050526/CLTH003 DATASOURCE: Dana Corporation CONTACT: Michelle 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

Copyright