EX-99.1 2 l38914exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(NEWS RELEASE LOGO)
Dana Holding Corporation Reports 2009 Results
  •   Operational profit improvements of more than $500 million substantially
offset 35% sales decline
 
  •   Achieved full-year adjusted EBITDA of $326 million
 
  •   Delivered key financial objectives – positive cash, cost reductions, and margin improvements – in difficult environment
 
  •   Accomplished sequential improvement in sales and adjusted EBITDA from
third quarter of 2009
 
  •   Increased total cash to $947 million, reduced net debt by $418 million in 2009
MAUMEE, Ohio – February 24, 2010 – Dana Holding Corporation (NYSE: DAN) today announced its full-year and fourth-quarter 2009 results.
Operating improvements of more than $500 million from margin improvements, cost reductions, and other factors largely offset lower profits resulting from a 35-percent decline in full-year sales, which was due to substantially lower industry production volumes in 2009. As a result, adjusted EBITDA was $326 million, down just $23 million compared to 2008. Full-year 2009 sales were $5,228 million, down $2,867 million from the prior year.
Dana significantly improved margins over 2008, despite the reduced production volumes in 2009. Fourth-quarter 2009 adjusted EBITDA margin was 7.7 percent, compared with fourth-quarter 2008 adjusted EBITDA of 0.3 percent. Cost reduction efforts contributed approximately $300 million to the full-year 2009 improvement.
In 2009, Dana narrowed its net loss by $291 million compared to the prior year, after excluding a one-time gain of $754 million in 2008 recognized in connection with the application of fresh start accounting. The company reported a net loss of $431 million in 2009, which included fourth-quarter after-tax charges of $153 million related to the planned divestiture of its Structural Products business to Metalsa, S.A. de C.V.
At December 31, 2009, Dana had increased its cash position by $170 million to $947 million; improved total liquidity by $215 million to $1,094 million; reduced total debt by $248 million to $1,003 million; and reduced net debt by $418 million to $56 million, all compared to respective 2008 year-end totals.
“In spite of a substantial downturn in our markets, the Dana team delivered solid cash generation and vital cost reductions and margin improvements,” said Dana President and Chief Executive Officer Jim Sweetnam. “These achievements helped dampen the negative impacts of the broader marketplace and provide a solid base for improvement in 2010.
“Our team is managing aggressively through a difficult period and delivering on our commitments,” he added. “Much more work lies ahead, but as we begin to see modest increases in vehicle production across our segments and regions, we also see opportunities to take advantage of our improving competitive position and renewed focus on product development.”

 

Fourth-Quarter Results
Sales for the fourth quarter of 2009 were $1,493 million, which compares with $1,521 million for the same period in 2008. Fourth-quarter adjusted EBITDA was $115 million, a significant improvement over $4 million reported for the final three months of 2008.
In the fourth quarter of 2009, the company narrowed its net loss to $236 million, compared with a net loss of $249 million for the same period in 2008, despite the inclusion of the net charges of $153 million associated with the anticipated sale of the Structures business.
Dana Breaks Ground for New Gear Manufacturing & Testing Center in India
Earlier this month, Dana and its Indian joint venture partner Anand Automotive Systems broke ground for a new hypoid gear manufacturing facility and testing center in Chakan, India. Located on the same site as Dana’s existing Spicer India operations, the new facility adds to Dana’s already substantial presence in India, which currently includes 10 operations. Dana and its JV partner will invest $35 million to $40 million over the next several years to build the 50,000 sq. ft. facility, which is expected to open in late 2011. The facility will employ approximately 130 people and produce 240,000 gear sets annually at full capacity. The expanded product capability provided by the facility will enable Dana to better address customer demands for improved efficiency, power density, fuel economy, torque-carrying capacity, and weight reduction.
Dana to Host Fourth-Quarter Conference Call at 10:30 a.m. Today
Dana will discuss its full-year and fourth-quarter results in a conference call at 10:30 a.m. EST today. Participants may listen to the audio portion of the conference call either through audio streaming online or by telephone. Slide viewing is only available online via a link provided on the Dana Investor Web site. To dial into the conference call, domestic locations should call 1-888-311-4590 (Conference I.D. # 53634802). International locations should call 1-706-758-0054 (Conference I.D. # 53634802). Please ask for the Dana Holding Corporation Financial Webcast and Conference Call. Phone registration will be available beginning at 10 a.m. EST. An audio recording of the call will be available after 5 p.m. To access this recording, please dial 1-800-642-1687 (U.S. or Canada) or 1-706-645-9291 (international) and enter Conference I.D. # 53634802. A webcast replay will also be available after 5 p.m. today, and may be accessed via the Dana Investor Web site.
Non-GAAP Measures
In connection with Dana’s emergence from bankruptcy on January 31, 2008, and the application of fresh start accounting in accordance with the provisions of the American Institute of Certified Public Accountants’ Statement of Position 90-7, the post-emergence results of the successor company for the 11 months ended December 31, 2008 and the pre-emergence results of the predecessor company for the one month ended January 31, 2008 are presented separately as successor and predecessor results in the financial statements presented in accordance with generally accepted accounting principles (GAAP). This presentation is required by GAAP as the successor company is considered to be a new entity and the results of the new entity reflect the application of fresh start accounting. For the readers’ convenience and interest in this earnings release, we have combined the separate successor and predecessor periods to derive combined results for the 12 months ended December 31, 2008. The financial information accompanying this release provides the separate successor and predecessor GAAP results for the applicable periods, along with the combined results described above for 2008.

2

 

This release refers to adjusted EBITDA, which we’ve defined to be earnings before interest, taxes, depreciation, amortization, non-cash equity grant expense, restructuring expense, and other nonrecurring items (gain/loss on debt extinguishment or divestitures, impairment, etc). Adjusted EBITDA is a non-GAAP financial measure, and the measure currently being used by Dana as the primary measure of its operating segment performance. The most significant impact to Dana’s ongoing results of operations as a result of applying fresh start accounting is higher depreciation and amortization. By using adjusted EBITDA, which is a performance measure that excludes depreciation and amortization, the comparability of results is enhanced. Management also believes that adjusted EBITDA is an important measure since the financial covenants of our primary debt agreements are adjusted EBITDA-based, and our management incentive performance programs are based, in part, on adjusted EBITDA. Because it is a non-GAAP measure, adjusted EBITDA should not be considered a substitute for net income or other reported results prepared in accordance with GAAP. The financial information accompanying this release provides a reconciliation of adjusted EBITDA for the periods presented to the reported income (loss) from continuing operations before income taxes, which is a GAAP measure.
Forward-Looking Statements
Certain statements and projections contained in this news release are, by their nature, forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.
Dana’s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss important risk factors that could affect our business, results of operations and financial condition. The forward-looking statements in this news release speak only as of this date. Dana does not undertake any obligation to revise or update publicly any forward-looking statement for any reason.
About Dana Holding Corporation
Dana is a world leader in the supply of axles; driveshafts; and structural, sealing, and thermal-management products; as well as genuine service parts. The company’s customer base includes virtually every major vehicle manufacturer in the global automotive, commercial vehicle, and off-highway markets. Based in Maumee, Ohio, the company employs approximately 24,000 people in 26 countries and reported 2009 sales of $5.2 billion. For more information, please visit: www.dana.com.
     
Investor Contact
  Media Contact
Lillian Etzkorn:  419.887.5160
  Chuck Hartlage:  419.887.5123

3

 

DANA HOLDING CORPORATION
Consolidated Statement of Operations (Unaudited)
For the Three Months Ended December 31, 2009 and 2008
                 
    Three Months Ended  
    December 31,
    2009   2008
Net sales
   $ 1,493     $ 1,521  
Costs and expenses
                
Cost of sales
     1,387       1,541  
Selling, general and administrative expenses
     96       67  
Amortization of intangibles
     18       17  
Restructuring charges, net
     25       53  
Impairment of goodwill
             (11 )
Impairment of long-lived assets
     150       4  
Other expense, net
     (2 )     (1 )
 
        
Loss before interest, reorganization items and income taxes
     (185 )     (151 )
Interest expense
     31       43  
Reorganization items
             3  
 
        
Loss before income taxes
     (216 )     (197 )
Income tax expense
     (12 )     (51 )
Equity in earnings of affiliates
     (7 )     (1 )
 
        
Net loss
     (235 )     (249 )
Less: Noncontrolling interests net income
     1          
 
        
Net loss attributable to the parent company
     (236 )     (249 )
Preferred stock dividend requirements
     8       8  
 
        
Net loss available to common stockholders
   $ (244 )   $ (257 )
 
        
 
                
Net loss per share available to parent company stockholders:
                
Basic
   $ (2.02 )   $ (2.57 )
Diluted
   $ (2.02 )   $ (2.57 )
Average common shares outstanding
                
Basic
     139       100  
Diluted
     139       100  

page 1 of 9

 

DANA HOLDING CORPORATION
Consolidated Statement of Operations
For the Years Ended December 31, 2009 and 2008
                                   
                    Dana     Prior Dana
                    Eleven Months     One Month
    Dana   Combined (1)   Ended     Ended
    Year Ended December 31,   December 31,     January 31,
    2009   2008   2008     2008
Net sales
   $ 5,228     $ 8,095     $ 7,344       $ 751  
Costs and expenses
                                  
Cost of sales
     4,985       7,815       7,113         702  
Selling, general and administrative expenses
     313       337       303         34  
Amortization of intangibles
     71       66       66            
Restructuring charges, net
     118       126       114         12  
Impairment of goodwill
             169       169            
Impairment of long-lived assets
     156       14       14            
Other income, net
     98       61       53         8  
 
                  
Income (loss) from continuing operations before interest, reorganization items and income taxes
     (317 )     (371 )     (382 )       11  
Interest expense
     139       150       142         8  
Reorganization items
     (2 )     123       25         98  
Fresh start accounting adjustments
             1,009                 1,009  
 
                  
Income (loss) from continuing operations before income taxes
     (454 )     365       (549 )       914  
Income tax benefit (expense)
     27       (306 )     (107 )       (199 )
Equity in earnings of affiliates
     (9 )     (9 )     (11 )       2  
 
                  
Income (loss) from continuing operations
     (436 )     50       (667 )       717  
Loss from discontinued operations
             (10 )     (4 )       (6 )
 
                  
Net income (loss)
     (436 )     40       (671 )       711  
Less: Noncontrolling interests net income (loss)
     (5 )     8       6         2  
 
                  
Net income (loss) attributable to the parent company
     (431 )     32       (677 )       709  
Preferred stock dividend requirements
     32       29       29            
 
                  
Net income (loss) available to common stockholders
   $ (463 )   $ 3     $ (706 )     $ 709  
 
                  
 
                                  
Income (loss) per share from continuing operations available to parent company stockholders:
                                  
Basic
   $ (4.19 )           $ (7.02 )     $ 4.77  
Diluted
   $ (4.19 )           $ (7.02 )     $ 4.75  
Loss per share from discontinued operations attributable to parent company stockholders:
                                  
Basic
   $ -             $ (0.04 )     $ (0.04 )
Diluted
   $ -             $ (0.04 )     $ (0.04 )
Net income (loss) per share available to parent company stockholders:
                                  
Basic
   $ (4.19 )           $ (7.06 )     $ 4.73  
Diluted
   $ (4.19 )           $ (7.06 )     $ 4.71  
Average common shares outstanding
                                  
Basic
     110               100         150  
Diluted
     110               100         150  
 
(1)   See “Non-GAAP Measures” in body of press release for comments regarding the presentation of combined
information for the year ended December 31, 2008.

page 2 of 9

 

DANA HOLDING CORPORATION
Consolidated Balance Sheet
As of December 31, 2009 and 2008
                 
    December 31,
    2009   2008
Assets
                
Current assets
                
Cash and cash equivalents
   $ 947     $ 777  
Accounts receivable
                
Trade, less allowance for doubtful accounts of $18 in 2009 and $23 in 2008
     728       764  
Other
     141       164  
Inventories
     608       869  
Other current assets
     59       52  
Current assets held for sale
     99       121  
 
        
Total current assets
     2,582       2,747  
 
                
Goodwill
     111       108  
Intangibles
     438       515  
Investments and other assets
     233       200  
Investments in affiliates
     112       119  
Property, plant and equipment, net
     1,484       1,636  
Non-current assets held for sale
     104       282  
 
        
Total assets
   $ 5,064     $ 5,607  
 
        
 
                
Liabilities and equity
                
Current liabilities
                
Notes payable, including current portion of long-term debt
   $ 34     $ 70  
Accounts payable
     601       759  
Accrued payroll and employee benefits
     103       112  
Accrued restructuring costs
     29       65  
Taxes on income
     40       93  
Other accrued liabilities
     270       258  
Current liabilities held for sale
     79       89  
 
        
Total current liabilities
     1,156       1,446  
 
                
Long-term debt
     969       1,181  
Deferred employee benefits and other non-current liabilities
     1,160       845  
Commitments and contingencies
                
 
        
Total liabilities
     3,285       3,472  
 
                
Parent company stockholders’ equity
                
Preferred stock, 50,000,000 shares authorized
                
Series A, $0.01 par value, 2,500,000 issued and outstanding
     242       242  
Series B, $0.01 par value, 5,400,000 issued and outstanding
     529       529  
Common stock, $0.01 par value, 450,000,000 authorized, 139,414,149 issued and outstanding
     1       1  
Additional paid-in capital
     2,580       2,321  
Accumulated deficit
     (1,169 )     (706 )
Accumulated other comprehensive loss
     (504 )     (359 )
 
        
Total parent company stockholders’ equity
     1,679       2,028  
Noncontrolling interests
     100       107  
 
        
Total equity
     1,779       2,135  
 
        
Total liabilities and equity
   $ 5,064     $ 5,607  
 
        

page 3 of 9

 

DANA HOLDING CORPORATION
Consolidated Statement of Cash Flows (Unaudited)
For the Three Months Ended December 31, 2009 and 2008
                 
    Three Months Ended  
    December 31,  
    2009     2008  
Cash flows – operating activities
                
Net loss
     $ (235 )      $ (249 ) 
Depreciation
     80       75  
Amortization of intangibles
     22       21  
Amortization of deferred financing charges and original issue discount
     7       7  
Impairment of goodwill, intangibles, investments and other assets
     150       (7 ) 
Deferred income taxes
     11       40  
Loss on extinguishment of debt
             10  
Change in accounts receivable
     22       409  
Change in inventories
     35       70  
Change in accounts payable
     13       (216 ) 
Change in other current assets and liabilities
     (25 )      (93 ) 
Other, net
     40       (31 ) 
 
        
Net cash flows provided by operating activities (1)
     120       36  
 
        
 
                
Cash flows – investing activities
                
Purchases of property, plant and equipment (1)
     (25 )      (86 ) 
Proceeds from sale of businesses and assets
             14  
Other
     (2 )      (1 ) 
 
        
Net cash flows used in investing activities
     (27 )      (73 ) 
 
        
 
                
Cash flows – financing activities
                
Net change in short-term debt
             4  
Deferred financing payments
             (24 ) 
Proceeds from long-term debt
     22          
Repayment of long-term debt
     (17 )      (153 ) 
Proceeds from issuance of common stock
     33          
Dividends paid to noncontrolling interests
             (1 ) 
Other
     1       (3 ) 
 
        
Net cash flows provided by (used in) financing activities
     39       (177 ) 
 
        
 
                
Net increase (decrease) in cash and cash equivalents
     132       (214 ) 
Cash and cash equivalents – beginning of period
     814       1,007  
Effect of exchange rate changes on cash balances
     1       (16 ) 
 
        
Cash and cash equivalents – end of period
     $ 947       $ 777  
 
        
 
(1)   Free cash flow of $95 in 2009 and ($50) in 2008 is the sum of net cash provided by operating activities reduced by the purchases of property, plant and equipment.

page 4 of 9

 

DANA HOLDING CORPORATION
Consolidated Statement of Cash Flows
For the Years Ended December 31, 2009 and 2008
                                               
                    Dana       Prior Dana  
                    Eleven Months       One Month  
    Dana     Combined (1)     Ended       Ended  
    Year Ended December 31,     December 31,       January 31,  
    2009     2008     2008       2008  
Cash flows – operating activities
                                  
Net income (loss)
     $ (436 )      $ 40       $ (671 )        $ 711  
Depreciation
     311       292       269         23  
Amortization of intangibles
     86       81       81            
Amortization of inventory valuation
             49       49            
Amortization of deferred financing charges and original issue discount
     34       27       27            
Impairment of goodwill, intangibles, investments and other assets
     156       183       183            
Deferred income taxes
     (20 )      213       22         191  
(Gain) loss on extinguishment of debt
     (35 )      10       10            
Reorganization:
                                  
Reorganization items net of cash payments
     (4 )      55       (24 )        79  
Payment of claims (2)
             (100 )      (100 )           
Payments to VEBAs (2)
             (788 )      (733 )        (55 ) 
Gain on settlement of liabilities subject to compromise
             (27 )                (27 ) 
Fresh start adjustments
             (1,009 )                (1,009 ) 
Pension contributions in excess of expense
     (5 )      (38 )      (36 )        (2 ) 
Change in accounts receivable
     107       434       512         (78 ) 
Change in inventories
     299       (34 )      (6 )        (28 ) 
Change in accounts payable
     (184 )      (210 )      (227 )        17  
Change in accrued payroll and employee benefits
     (80 )      (67 )      (79 )        12  
Change in accrued income taxes
     (41 )      (42 )      (40 )        (2 ) 
Change in other current assets and liabilities
     (7 )      (124 )      (142 )        18  
Other, net
     27       36       8         28  
 
                  
Net cash flows provided by (used in) operating activities (2)
     208       (1,019 )      (897 )        (122 ) 
 
                  
 
                                  
Cash flows – investing activities
                                  
Purchases of property, plant and equipment (2)
     (99 )      (250 )      (234 )        (16 ) 
Proceeds from sale of businesses and assets
     3       19       14         5  
Change in restricted cash
             93                 93  
Other
     (2 )      (6 )      (1 )        (5 ) 
 
                  
Net cash flows provided by (used in) investing activities
     (98 )      (144 )      (221 )        77  
 
                  
 
                                  
Cash flows – financing activities
                                  
Net change in short-term debt
     (36 )      (88 )      (70 )        (18 ) 
Proceeds from Exit Facility debt
             1,430       80         1,350  
Deferred financing payments
     (1 )      (66 )      (26 )        (40 ) 
Proceeds from long-term debt
     27                            
Repayment of long-term debt
     (214 )      (164 )      (164 )           
Net proceeds from issuance of common stock
     250                            
Dividends paid to preferred stockholders
             (18 )      (18 )           
Dividends paid to noncontrolling interests
     (5 )      (8 )      (7 )        (1 ) 
Proceeds from (repayment of) debtor-in-possession facility
             (900 )                (900 ) 
Payment of DCC Medium Term Notes
             (136 )                (136 ) 
Original issue discount payment
             (114 )                (114 ) 
Issuance of Series A and Series B preferred stock
             771                 771  
Other
     11       (2 )      (2 )           
 
                  
Net cash flows provided by (used in) financing activities
     32       705       (207 )        912  
 
                  
 
                                  
Net increase (decrease) in cash and cash equivalents
     142       (458 )      (1,325 )        867  
Cash and cash equivalents – beginning of period
     777       1,271       2,147         1,271  
Effect of exchange rate changes on cash balances
     28       (40 )      (45 )        5  
Net change in cash of discontinued operations
             4                 4  
 
                  
Cash and cash equivalents – end of period
     $ 947       $ 777       $ 777         $ 2,147  
 
                  
 
(1)   See “Non-GAAP Measures” in body of press release for comments regarding the presentation of combined information for the year ended December 31, 2008.
 
(2)   Free cash flow of $109 in 2009 and ($381) in 2008 is the sum of net cash provided by (used in) operating activities (excluding claims payments) reduced by the purchases of property, plant and equipment.

page 5 of 9

 

DANA HOLDING CORPORATION
Segment Sales & Adjusted EBITDA (Unaudited)
For the Three Months Ended December 31, 2009 and 2008
                 
    Three Months Ended  
    December 31,  
SALES   2009     2008  
Light Vehicle Driveline
     $ 595       $ 508  
Sealing
     158       134  
Thermal
     53       42  
Structures
     189       159  
Commercial Vehicle
     288       321  
Off-Highway
     210       358  
Other
             (1 ) 
 
        
Total Sales
     $ 1,493       $ 1,521  
 
        
 
                
Adjusted EBITDA
                
Light Vehicle Driveline
     $ 52       $ (17 ) 
Sealing
     10       (6 ) 
Thermal
     5       (1 ) 
Structures
     15       (8 ) 
Commercial Vehicle
     28       3  
Off-Highway
     11       10  
 
        
Segment EBITDA
     121       (19 ) 
Shared services and administrative
     (7 )      (7 ) 
Other income, net
     3       30  
Foreign exchange not in segments
     (2 )         
 
        
Adjusted EBITDA
     $ 115       $ 4  
 
        

page 6 of 9

 

DANA HOLDING CORPORATION
Segment Sales and Adjusted EBITDA
For the Years Ended December 31, 2009 and 2008
                                   
                    Dana       Prior Dana  
                    Eleven Months       One Month  
    Dana     Combined (1)     Ended       Ended  
    Year Ended December 31,     December 31,       January 31,  
SALES   2009     2008     2008       2008  
Light Vehicle Driveline
     $ 2,021       $ 2,884       $ 2,603         $ 281  
Sealing
     535       705       641         64  
Thermal
     179       259       231         28  
Structures
     592       876       786         90  
Commercial Vehicle
     1,051       1,572       1,442         130  
Off-Highway
     850       1,794       1,637         157  
Other
             5       4         1  
 
                       
Total Sales
     $ 5,228       $ 8,095       $ 7,344         $ 751  
 
                  
 
                                  
Adjusted EBITDA
                                  
Light Vehicle Driveline
     $ 131       $ 89       $ 79         $ 10  
Sealing
     21       50       44         6  
Thermal
     8       6       3         3  
Structures
     35       41       37         4  
Commercial Vehicle
     81       56       50         6  
Off-Highway
     38       116       102         14  
 
                  
Segment EBITDA
     314       358       315         43  
Shared services and administrative
     (22 )     (26 )     (23 )       (3 )
Other income (expense), net
     33       20       22         (2 )
Foreign exchange not in segments
     1       (3 )     (3 )          
 
                  
Adjusted EBITDA
     $ 326       $ 349       $ 311         $ 38  
 
                  
 
(1)   See “Non-GAAP Measures” in body of press release for comments regarding the presentation of combined information for the year ended December 31, 2008.

page 7 of 9

 

DANA HOLDING CORPORATION
Reconciliation of Segment and Adjusted EBITDA to Loss
from Continuing Operations Before Income Taxes
For the Three Months Ended December 31, 2009 and 2008
                 
    Three Months Ended  
    December 31,  
    2009     2008  
Segment EBITDA
     $ 121       $ (19 )
Shared services and administrative
     (7 )     (7 )
Other income, net
     3       30  
Foreign exchange not in segments
     (2 )        
 
        
Adjusted EBITDA
     115       4  
Depreciation
     (80 )     (75 )
Amortization
     (22 )     (21 )
Restructuring
     (25 )     (53 )
Impairment
     (150 )     7  
Reorganization items, net
             (3 )
Loss on extinguishment of debt
             (10 )
Strategic transaction expenses
     (12 )     (3 )
Loss on sale of assets, net
     (6 )     (3 )
Stock compensation expense
     (6 )     (2 )
Foreign exchange on intercompany loans and market value adjustments on forwards
     (5 )     (7 )
Interest expense
     (31 )     (43 )
Interest income
     6       12  
 
        
Loss from continuing operations before income taxes
     $ (216 )     $ (197 )
 
        

page 8 of 9

 

DANA HOLDING CORPORATION
Reconciliation of Segment and Adjusted EBITDA to Income (Loss)
from Continuing Operations Before Income Taxes
For the Years Ended December 31, 2009 and 2008
                                   
                    Dana       Prior Dana  
                    Eleven Months       One Month  
    Dana     Combined (1)     Ended       Ended  
    Year Ended December 31,     December 31,       January 31,  
    2009     2008     2008       2008  
Segment EBITDA
     $ 314       $ 358       $ 315         $ 43  
Shared services and administrative
     (22 )     (26 )     (23 )       (3 )
Other income (expense), net
     33       20       22         (2 )
Foreign exchange not in segments
     1       (3 )     (3 )          
 
                  
Adjusted EBITDA
     326       349       311         38  
Depreciation
     (311 )     (292 )     (269 )       (23 )
Amortization
     (86 )     (130 )     (130 )          
Restructuring
     (118 )     (126 )     (114 )       (12 )
DCC EBIT
             (2 )     (2 )          
Impairment
     (156 )     (183 )     (183 )          
Reorganization items, net
     2       (123 )     (25 )       (98 )
Gain (loss) on extinguishment of debt
     35       (10 )     (10 )          
Strategic transaction expenses
     (16 )     (10 )     (10 )          
Loss on sale of assets, net
     (8 )     (10 )     (10 )          
Stock compensation expense
     (13 )     (6 )     (6 )          
Foreign exchange on intercompany loans and market value adjustments on forwards
     6       (3 )     (7 )       4  
Interest expense
     (139 )     (150 )     (142 )       (8 )
Interest income
     24       52       48         4  
Fresh start accounting adjustments
             1,009                 1,009  
 
                  
Income (loss) from continuing operations before income taxes
     $ (454 )     $ 365       $ (549 )       $ 914  
 
                  
 
                                  
Net cash flows provided by (used in) operating activities
     $ 208       $ (1,019 )     $ (897 )       $ (122 )
Bankruptcy emergence payments
             888       833         55  
Purchases of property, plant and equipment
     (99 )     (250 )     (234 )       (16 )
 
                  
Free cash flow
     $ 109       $ (381 )     $ (298 )       $ (83 )
 
                  
 
(1)   See “Non-GAAP Measures” in body of press release for comments regarding the presentation of combined information for the year ended December 31, 2008.

page 9 of 9