DOW JONES NEWSWIRES
Dana Holding Corp. (DAN) said it will take a $25 million charge
to its fourth-quarter earnings after agreeing to pay Toyota Motor
Corp. (TM, 7203.TO) that amount in a warranty-claims
settlement.
The maker of axles, drive shafts and thermal-management products
has reported better performance lately as auto production has
improved. Moody's Investors Service lifted its outlook on the
company in June, citing its recent results. A month earlier,
Standard & Poor's Ratings Services had upgraded it for the
second time in six months.
The settlement involved corrosion of frames that Dana's former
structural products business produced for certain Tacoma pickup
trucks, the parts maker said Wednesday. Dana sold the business last
year to Mexican auto parts maker Metalsa S.A. de C.V., a unit of
privately held Grupo Proeza, for $150 million.
Analysts most recently expected Dana to report earnings of $28
million for the fourth quarter, according to a Thomson Reuters
poll. Such estimates typically exclude one-time items and other
adjustments.
Dana shares closed Tuesday at $18.27 and were inactive in recent
premarket trading. The stock has gained 62% over the past year.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com