Dana Holding Corp., which makes axles, driveshafts, transmissions, sealing and thermal-management products, and service parts, reported a narrower fourth-quarter net loss as sales rose. The company also revealed that it predicts that 2011 revenue would increase at least 17 percent.
Previously, the company had projected a 10 percent jump in full-year revenue. Dana posted a fourth-quarter net loss of $14 million and, a year before, the company had a $236 million net loss. During the period, revenue rose 4 percent to $1.56 billion.
The company said it generated $12 million in free cash flow during the fourth quarter, marking the seventh consecutive quarter of positive free cash flow.
For the entire 2010, Dana recorded net income of $10 million compared to a $431 million loss in 2009, reflecting ongoing restructuring and cost-reduction efforts. Last year, annual sales rose 17 percent to $6.1 billion.
Executive Chairman and Interim CEO John Devine said the company met or exceeded its 2010 targets including operational improvements, profitable growth and improved margins. Dana said it secured $846 million in new supply contracts during 2010.
The company said the new contracts were secured in all markets - automotive, commercial vehicle, and off-highway - and geographic regions. The new contracts will generate profit margins above its capital cost and surpass a goal of $650 million to $700 million. [via reuters]