DOW JONES NEWSWIRES
Dana Holding Corp. (DAN) said Tuesday it expanded its control in
two emerging-market ventures, saying the deals would enhance growth
in China and India.
The auto-parts maker increased its stake in Dongfeng Dana Axle
Co., a joint venture with Dongfeng Motor Group Co. Ltd. (DNFGY,
0489.HK), to 50% from 6%. The deal cost Dana $124 million in cash.
A sales-incentive agreement could boost Dana's consideration in the
venture by another $20 million if it achieves certain profitability
targets.
"We are encouraged by the continued strong performance of the
truck and bus markets in China, and of our partner Dongfeng, and
look forward to the strengthened relationship," Dana Chief
Executive Roger J. Wood said.
Dana also bought the commercial-vehicle axles business of Axles
India Ltd. Acquiring the business, which is a part of its joint
venture Dana has with two Indian companies, cost $13 million, and
Dana expects the business to generate $50 million in annual
revenue.
Wood said the Axles India deal further extends Dana's
capabilities and operations in another rapidly growing market.
Dana exited bankruptcy in 2008 and suffered along with the rest
of auto sector the following year, but its sales improved last year
as demand revived. In it latest quarterly results, Dana reported a
slightly narrower loss as sales of off-highway and commercial
vehicle parts led broad growth across nearly all its segments.
Dana shares closed Tuesday at down 0.5% at $18.46 and weren't
active after hours.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com