Dana Holding Corporation has a market cap of $1.76 billion; its shares were traded at around $13.15 with a P/E ratio of 6.8 and P/S ratio of 0.2. The dividend yield of Dana Holding Corporation stocks is 1.7%.
Highlight of Business Operations:In South America, sales benefited by $11 from the strategic agreement with SIFCO completed in February 2011. Exclusive of this and currency effects, 2012 first half sales in South America were down 24% versus 2011, primarily as a result of medium/heavy vehicle production levels being down more than 30% and light vehicle production being 6% lower. The AIL acquisition in the second quarter of 2011 contributed $18 of the Asia Pacific sales increase. The organic sales growth of 16% in Asia Pacific is reflective primarily of the improving production levels in the region as compared to the first half of 2011 along with increased sales from new customer programs.
LVD segment EBITDA of $76 and $139 in the second quarter and first six months of 2012 is up from $60 and $126 in the comparable periods of 2011. EBITDA margins of 10.3% of LVD sales during the second quarter of 2012 were higher than the 9.2% margin experienced in 2011, with six-month EBITDA as a percent of sales of 9.5% in 2012 and 2011. Higher sales volumes, the result of stronger market production levels, increased earnings by about $16 during the second quarter and $29 for the six month period ended June 30. Performance in the second quarter of 2012 as compared to the same period in 2011 was favorably impacted by material recovery and pricing adjustments which offset the effects of higher commodity and other costs. As compared to the first six months of 2011, higher commodity and other costs in this year’s first six months exceeded the benefits from material recovery and other pricing actions.
Commercial Vehicle segment EBITDA for the second quarter and first six months of 2012 was $57 and $118, an increase of $2 and $20 over the comparable 2011 periods. Second-quarter EBITDA as a percent of sales in 2012 was 11.1% compared with 9.4% in 2011, while six-month segment EBITDA as a percent of sales in 2012 was 11.1%, up from 9.3% in 2011. Lower overall production volume compared to 2011 reduced this segment’s profit in the second quarter by about $6. Material cost recoveries and other pricing actions of about $23 more than offset the comparative second quarter adverse effects from lower volume, lower aftermarket sales mix and increased commodity and other costs. For the comparative six-month periods ended June 30, overall stronger production levels in this segment’s established markets added about $4, with material cost recovery and pricing contributing about $40. Partially offsetting these increases to EBITDA were higher material commodity and other costs.
In our Off-Highway segment, second-quarter 2012 EBITDA of $56 was up $5 from the second quarter of 2011, improving EBITDA as a percent of sales to 13.1% in 2012 from 12.3% in 2011. Segment EBITDA of $105 for the first half of 2012 was up $13 from 2011, resulting in six-month EBITDA margins of 12.4% in 2012 and 11.7% in 2011. Improving market conditions in this business drove stronger sales volume which increased 2012 segment EBITDA by about $7 in the second quarter and by about $19 in the first half, while pricing actions added $4 and $5. Partially offsetting these improvements in earnings were reductions associated with currency effects and increased costs.
Working capital used cash of $139 in the first half of 2012 and $172 in 2011. Higher sales levels in the first half of 2012 as compared to 2011 resulted in increased levels of receivables and inventory. Cash of $146 was used in 2012 to finance increased receivables and $300 was used in the first half of 2011. We also used cash of $97 and $83 to fund higher inventory levels in the first half of 2012 and 2011. Partially offsetting the cash use for higher receivables and inventory in both the first half of 2012 and 2011 was cash provided by increases in accounts payable and other net liabilities of $104 in 2012 and $211 in 2011.
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