Dana Holding Corporation reported adjusted EDITDA of US$181m for the first quarter of 2011 but booked a net loss of $30m due to $53m of one-time charges associated with the refinancing and restructuring of debt in January.
Sales of $1.8bn were up nearly 20% over the first quarter of 2010 – and continued operating improvements enabled the company to achieve an adjusted EBITDA margin of 10.1%. Adjusted earnings per share were $0.34, compared to $0.06 in Q1 2010.
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“Dana had another strong quarter as we took decisive steps to expand our global footprint and product offerings,” said chairman John Devine. “We have significantly improved the building blocks for continued growth by reaching an early agreement with our labor unions, restructuring our balance sheet, and strategically investing in key markets.”
Dana said light and commercial vehicle markets continued to improve. Light vehicle production was up 5% globally and 14% in North America compared to the same period last year. Commercial vehicle production in the quarter was up 41% in North America.
Dana updated upwards its assumptions and earnings guidance for 2011. 2011 revenues are now forecast to increase more than 20% over 2010 versus the previous forecast of more than 17% growth; adjusted EBITDA is now projected to be $755m to $775m versus $740m to $760m; adjusted EBITDA as a percentage of sales is still forecast to be more than 10%; earnings per share are expected to total $1.55 to $1.65 per share compared to $1.50 to $1.60 and free cash flow for the year is projected at more than $175m versus previous guidance of greater than $150m.
