Dana Holding has posted a first quarter 2009 net loss of US$160m, compared with income of $663m a year ago. The 2008 results included a one-time after-tax gain of $754m after taxes, related to emergence and adoption of fresh start Excluding the one-time gain, the comparable first-quarter 2008 net loss was $91m, the supplier said.
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Sales fell 47% to $1.2bn due to lower vehicle production in all market segments.
EBITDA of $16m compared with $134m in Q1 2008.
“The negative impacts associated with volume declines were partially offset by improved operational performance and pricing,” Dana said in a statement.
“Our first-quarter results were hit hard by the continued global recession,” said chairman & CEO John Devine. “Despite this backdrop, we are making good progress on improving our business through cost reductions, right-sizing our operations, and improving margins and working capital. During the first quarter, we reduced our global workforce by nearly 5,000 employees and reduced fixed costs, achieving total cost reductions of approximately $300m.
“These efforts have helped preserve adequate liquidity,” he added.
Dana said today it is initiating a Dutch auction tender programme to repurchase up to 10% of the existing US$1.26bn under its term loan facility. The company expects to complete this later this month.
