Lower vehicle production across all market segments – especially off-highway – resulted in Dana Holding Corp.’s revenues plummeting 49 percent – $1.14 billion – from the same 2008 quarter. And yet, Dana announced that it had achieved break-even net income compared to a loss of $122 million in the second quarter last year.
Earnings before interest, taxes, depreciation, amortization, and restructuring (EBITDA) totaled $94 million, compared with $164 million in the second quarter of 2008. At June 30, 2009, cash balances were $553 million, with total available liquidity of $664 million. Net debt was $546 million.
“Our second-quarter revenues reflected the continued weak demand in all three of our market segments,” said Dana Executive Chairman John Devine. “Despite this difficult environment, our aggressive efforts to resize our organization, implement permanent structural improvements, and address pricing continued to take hold. These actions resulted in substantial profit and cash flow improvements compared to the prior quarter, despite slightly lower sales.”
During the quarter, Dana reduced its global workforce by approximately 1,400 employees, bringing its total year-to-date reduction to approximately 6,200. The workforce reductions include both actions to align the organization to reduced volume levels, as well as permanent, structural reductions to improve productivity and profitability.
The company said it had achieved a first-half pricing improvement of $131 million, which includes the recovery of material cost increases. Other actions – primarily cost reductions – improved first-half EBITDA by $113 million.