Dana Holding on Thursday said it had achieved break even net income in the second quarter of 2009 despite a 49% year on year sales fall.
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That compared to the $122m loss in Q2 2008. Earnings before interest, taxes, depreciation, amortisation and restructuring costs (EBITDA) was down to $94m from $164m in 2008.
Second-quarter sales were $1.19bn versus $2.33bn the previous year as vehicle production fell in all markets, most notably in the off-highway sector.
Dana said it had a 30 June cash pile of $553m and total available liquidity of $664m. Net debt was $546m.
“Our second-quarter revenues reflected the continued weak demand in all three of our market segments,” said chairman John Devine. Further restructuring and cost reductions “resulted in substantial profit and cash flow improvements compared to the prior quarter, despite slightly lower sales”.
Dana axed another 1,400 jobs in the second quarter, lowering global headcount to 6,200.
“The positive cash flow generated in the second quarter enabled us to reduce debt levels and interest expense at an attractive price, and strengthened our debt position,” said chief financial officer Jim Yost.
First half sales fell to $2,406m from $4,645m in 2008. The supplier booked a net loss of $157m versus the $537m profit a year ago though that included a one-off gain of $754m connected with the company’s emergence from bankruptcy and application of fresh start accounting.
EBITDA for the first six months of 2009 was $110m, compared with $298m the previous year.
