DOW JONES NEWSWIRES
Dana Holding Corp. (DAN) narrowed its fourth-quarter loss after
the auto-parts maker controlled costs and boosted sales in all but
one of its main business segments.
The company also boosted its profit forecast for the year by 20
cents, to between $1.50 and $1.60 a share and said it expects sales
to rise at least 17%, compared with its previous estimate of more
than 10% growth.
The maker of axles, driveshafts and thermal-management products
suffered along with the auto industry in 2009, but its sales
improved last year as light-vehicle demand rebounded.
Last month, the company took advantage of its improving results
and lower lending rates to issue about $700 million in eight- and
10-year notes, mostly eliminating secured debt from its capital
structure.
The company posted a fourth-quarter loss of $14 million, or 16
cents a share, compared with a year-earlier loss of $236 million,
or $2.02 a share. Net sales rose 4.4% to $1.56 billion.
Analysts surveyed by Thomson Reuters expected a per-share profit
of 18 cents on revenue of $1.5 billion.
Gross margin widened to 11% from 7.1% as sales costs held
steady.
The company's light-vehicle driveline segment, its largest by
revenue, boosted sales 13%. The power technologies unit saw revenue
rise 9%, while off-highway sales surged 51% and commercial-vehicle
revenue rose 14%. Structures revenue dropped 93%.
Dana's shares closed at $17.69 and were inactive premarket. The
stock is up 20% in the past three months.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com;