Dana blames down revenue on weakened demand, foreign money rates

2/23/2013

Revenue at Dana Holding Corp. fell by a little more than 4 percent in 2012, but the auto parts supplier still posted significantly higher profits thanks in part to income tax benefits.

The Maumee-based company said Thursday it earned $269 million, or $1.40 per share, in 2012. That’s up from $188 million, or $1.02 per share, in 2011.

Revenue for the year was $7.2 billion, down from $7.5 billion in 2011.

Dana’s stock fell 18 cents, or just over 1 percent, to close at $16.44 a share.

In a statement, Dana president and chief executive officer Roger Wood said he was pleased with the company’s performance, in spite of significant market volatility.

“Our full-year results demonstrate a continued focus and execution on controllable levers across each of our business segments to adjust our cost structure in light of the market environment as well as disciplined investment, resulting in strong margin expansion and cash flow generation," Mr. Wood said.

Dana said revenue was affected by weakening demand in the year’s second half, and by foreign currency rates.

The company’s light vehicle driveline was the only segment that increased sales year over year, posting a modest 2 percent increase. The commercial vehicle driveline segment was hit the hardest, with sales falling by 13 percent.

Still, after factoring a $54 million income tax benefit, Dana reported a record net income of $300 million.

“Even without this gain, this was still a record earnings year for Dana,” Mr. Wood said on a conference call with investors and analysts.

Profits also rose in the fourth quarter to $80 million, or 41 cents per share. Analysts had forecast fourth-quarter earnings of 34 cents a share.

For the fourth quarter of 2011, Dana reported a profit of $63 million, or 33 cents per share.

Dana also gave an update on its $250 million share repurchase program, which was announced in October. Officials said the company repurchased slightly more than 1 million shares, spending approximately $15 million. Mr. Wood also pointed to the company establishing a quarterly dividend last year for the first time since it re-emerged from bankruptcy protection in 2008.

“All in all, a very good year for Dana and also our shareholders,” Mr. Wood said.

The company’s previously announced guidance for 2013 remains unchanged. Dana officials said they expect sales to be approximately $7.1 billion, and adjusted earnings per share of $1.88 to $1.95, excluding the impact of stock buybacks.

Contact Tyrel Linkhorn at: tlinkhorn@theblade.com or 419-724-6134.