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. Income before interest, reorganization items and income taxes was $124 million in 2010, compared to a loss of $317 in 2009.
In 2010, Dana posted a surge of $881 million in net sales, from $5.23 billion in 2009 to $6.11 in 2010. The sale of the company’s Structural Products business in early March 2010 resulted in a year-over-year sales reduction of $460 million. The company posted organic growth in sales to the tune of $1.27 billion, which can be attributed market volume, pricing and mix.
According to Dana, around 48 percent of its revenues in 2010 came from its North American operations while 52 percent were sourced from operations throughout the rest of the world. Its Light vehicle products -- including Power Technologies and Structures -- accounted for around 59 percent of Dana’s global revenues, while commercial vehicle and off-highway products accounted for 41 percent.
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.
Headquartered in Maumee, Ohio and incorporated in Delaware in 2007, Dana Holding is a leading supplier of driveline products, power technologies as well as genuine service parts for light and heavy vehicle manufacturers. At December 31, 2010, Dana Holding had around 22,500 employees in 26 countries. It also had 92 major manufacturing/distribution, engineering and office facilities around the world.