Zacks_Analysts' Blog : Dana's Loss Narrows - Analyst Blog

Dana Holding Corp. (DAN) has reported a narrower loss of $83 million or $0.92 per share (before special items) in the fourth quarter of 2009, compared to a loss of $249 million or $2.57 per share in the year-ago quarter.

However, the loss was wider than the Zacks Consensus Estimate of 8 cents per share. Sales in the quarter slipped 2% to $1.49 billion. Adjusted EBITDA margin improved significantly to 7.7% compared to adjusted EBITDA of 0.3% in the fourth quarter of 2008.

In 2009, Dana reported a narrower loss of $278 million or $2.53 per share (before special items), versus a loss of $722 million or $5.78 per share (before special items) in the previous year. However, the loss was significantly higher than the Zacks Consensus Estimate of 92 cents per share.

Sales in the year fell 35% to $5.2 billion, driven by lower industry production volumes in 2009. Adjusted EBITDA went down $23 million to $326 million.

Financial Position

Dana had cash and cash equivalents of $947 million as of December 31, 2009, an improvement from $777 million as of December 31, 2008. Long-term debt was $969 million as of that date. The company's long-term debt-to-capitalization ratio stood at 37%.

In 2009, cash flow from operations reached $208 million, in sharp contrast to a cash outflow of $1 billion in the previous year. Meanwhile, capital expenditures declined to $99 million from $250 million in 2008.

Based in Maumee, Ohio, Dana Holding Corp. (Dana Corporation, prior to its emergence from bankruptcy in February 2008) -- a Zacks #3 Rank (Hold) stock -- designs, manufactures and supplies products for vehicle manufacturers worldwide. The company offers its products under the Spicer, Victor Reinz, Parish, and Long brand names. It serves vehicle manufacturers in the automotive, commercial vehicle and off-highway markets.