DOW JONES NEWSWIRES
Dana Holding Corp. (DAN) broke even in the second quarter after
four straight quarters of losses on lower costs as revenue
continued to tumble.
The auto-parts supplier forecast also said it cut another 1,400
workers during the quarter, bringing its year-to-date job cuts to
about 6,200.
"Our second-quarter revenues reflected the continued weak demand
in all three of our market segments," said Chairman John
Devine.
The maker of axles, driveshafts and thermal-management products
has suffered along with the auto industry from a sharp drop in
sales for more than a year. Dana has slashed thousands of jobs and
closed plants since it exited from bankruptcy protection in
February 2008. But the company stands to benefit from improving
results at Ford Motor Co. (F), its biggest customer.
For the latest quarter, Dana reported break-even results,
compared with a year-earlier loss of $122 million. On a per-share
basis, which includes preferred-stock dividend, Dana's loss
narrowed to 8 cents from $1.27. The prior year included a $75
million write-down.
Revenue dropped 49% to $1.19 billion, helping lower gross margin
to 5.2% from 6.2%.
Dana's shares closed Wednesday at $4.67 and were inactive
premarket. The stock has soared from an all-time low of 19 cents in
March on bankruptcy concerns, but is still down a third since last
September.
-By Kathy Shwiff and Kerry Grace Benn, Dow Jones Newswires;
212-416-2353; kerry.benn@dowjones.com
