Dana Announces Full-Year and Fourth-Quarter 2011 Results

Dana Holding Corporation has announced its full-year and fourth-quarter 2011 results. Full-year net income was $219 million, compared to $11 million the previous year. Diluted adjusted earnings per share more than doubled to $1.66 from $0.79 in 2010, and sales increased 24% year-over-year to $7.6 billion.  

Stronger sales were primarily driven by higher vehicle production volumes and acquisitions; the latter accounted for more than $400 million in additional sales. Higher sales, significant material cost recovery, and cost reductions boosted the company's earnings in 2011, more than offsetting increased raw material prices.

Dana reported adjusted EBITDA of $765 million last year, up 38% over 2010. Adjusted EBITDA as a percent of sales for the year was 10.1%, compared to 9.1% in 2010 and 6.2% in 2009.

The company generated free cash flow of $174 million in 2011, the third consecutive year of positive results in this area. Dana maintained a strong balance sheet and had $1.4 billion of liquidity at year-end while continuing to invest in its operations, expand its footprint through acquisitions and complete debt refinancing.

"I'm pleased to say the Dana team delivered stronger results in 2011," says company President and Chief Executive Officer Roger J. Wood. "We improved in the key areas of product quality, delivery, and innovation. And, we improved both top- and bottom-line results to position the company to drive shareholder value going forward."

"The net new business of more than $1 billion is especially gratifying, as it illustrates a vote of confidence by customers in the quality, performance and innovation of our products. These new programs awarded in 2011 were from customers in all vehicle markets – light, commercial and off-highway – and in all geographic regions."

Sales for the fourth quarter were $1.9 billion, up $348 million over the same period in 2010. Adjusted EBITDA for the quarter was $183 million, up $40 million over the same period one year ago. Fourth-quarter free cash flow was $115 million.

Greater Presence in Emerging Markets

In 2011, Dana completed three strategic transactions that considerably strengthened the position of its Commercial Vehicle Driveline business in the emerging markets of China, India and Brazil. In China, the company acquired an additional 46% equity interest in Dongfeng Dana Axle Co., Ltd. (DDAC), its joint venture with Dongfeng Motor Co., Ltd., to achieve 50% ownership. DDAC had 2011 sales of $951 million and now represents Dana's largest overseas axle manufacturing base.

In India, Dana acquired the heavy-duty axle business of Axles India Limited, key customers of which are Ashok Leyland and Mahindra & Mahindra. In Brazil, a strategic agreement with SIFCO S.A. positioned Dana as the leading full-line supplier of commercial vehicle drivelines in South America and added approximately $390 million of sales in 2011.  

To support its growth in China, Dana also started construction of a technical center in Wuxi, Jiangsu, China. This center will provide advanced product and applications engineering for driveline, sealing and thermal products.

New Product Technologies

Dana introduced several new product technologies in 2011 aimed at helping its original-equipment customers offer more fuel-efficient, better performing and lower-maintenance vehicles. These included: