Dana Holding sales for full year 2012 reached $7.2bn compared with $7.5bn for 2011. The impact of currency lowered sales by $322m compared with last year. Growth in most segments was offset by a decline in commercial vehicle sales of $169m.
Net income was a record $300m, compared with $219m in the previous year. Net income in both 2012 and 2011 included income tax benefits related to lower valuation allowances for certain foreign jurisdictions. In 2012, these tax benefits totaled $54m, compared with $8m in 2011. Earnings per share, which excludes these tax benefits, was $1.75 for 2012 compared with $1.66 in 2011.
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Adjusted EBITDA was $781m for 2012, $16m higher than 2011. Adjusted EBITDA as a% of sales for 2012 increased 70 basis points to 10.8%, compared with 10.1% in 2011.
Sales for the fourth-quarter were $1.6bn compared with $1.9bn in 2011, reflecting the impact of unfavorable currency of $41m; program roll offs of $95m; and lower end-market demand of $155m. Net income of $88m in the fourth quarter of 2012 compares with $71m in 2011, including the benefit of income tax valuation allowance releases.
Adjusted EBITDA for the quarter was $154m, compared with $183m in 2011.
“I am pleased with Dana’s performance for 2012, despite end-market volatility in almost every region of the world,” said company president and CEO Roger Wood.#
Full-year 2013 targets:
- Sales of approximately $7.1bn,
- Adjusted EBITDA of $800m to $820m,
- Adjusted EBITDA as a percentage of sales of approximately 11.4%,
- Diluted adjusted EPS of $1.88 to $
- Capital spending of $180m to $200m
Based on the profitability improvements in Dana’s U.S. operations over the last three years and expected future performance, it is reasonably possible that in excess of $800m of income tax valuation allowance will be released in 2013.
“We have and will continue to maintain our cost and investment discipline and remain flexible as 2013 unfolds,” said Wood. “We are confident that we are also well-positioned to take advantage of further margin expansion opportunities in the event of a stronger production environment.”
