68 posts from 2008

9/12/08

Source: http://trailer-bodybuilders.com/aftermarket/arvinmeritor_earnings_1209/

ArvinMeritor, Inc. today issued guidance for the first quarter of fiscal year 2009, and withdrew previously released earnings expectations issued on Nov. 18, 2008, for the full year ending Sept. 27, 2009. The company is withdrawing full-year guidance due to continuing distress in the global markets and the uncertainty associated with projecting production volumes in the second half of the fiscal year.

For the first quarter of fiscal year 2009, ArvinMeritor expects to generate $50 million to $58 million of EBITDA (defined as income or loss from continuing operations before interest, income taxes, depreciation and amortization and loss on sale of receivables) on slightly more than $1 billion in sales, before special items. The company anticipates free cash outflow in the first quarter of 2009 to be less than its free cash outflow in the same period last year.

ArvinMeritor's financial guidance for the first quarter of 2009 is for continuing operations -- which includes ArvinMeritor's commercial vehicle systems and wheels businesses. The company expects the remaining light vehicle systems (LVS) businesses to be separated during 2009. The LVS outlook continues to be weak and may negatively affect the company's overall financial condition and GAAP results of operations until the point of sale.

The company is hosting its annual Analyst Day in New York City today where its executive team including Chip McClure, chairman, CEO and president; Carsten Reinhardt, president, Commercial Vehicle Systems; Jay Craig, senior vice president and CFO and Mary Lehmann, senior vice president, Strategic Initiatives, and Treasurer will present to investors and analysts.

Specifically, the team will provide a detailed overview of its commercial vehicle and wheels businesses and discuss actions it is taking to mitigate the effects of the current economic environment.

3/11/08

Source: http://trailer-bodybuilders.com/aftermarket/wabco_fuwa_china_brakes_1203/

WABCO Holdings Inc. today announced that WABCO has completed its agreement with Guangdong FUWA Heavy Industry Co., Ltd., (Fuwa) to form a joint venture for production of air disc brakes in China. Fuwa is the largest manufacturer of commercial trailer axles in China and in the world.

As previously announced, WABCO will have a 70 percent holding and Fuwa will have a 30 percent holding in the joint venture, which will be located at Fuwa’s newly established manufacturing facility in Taishan, Guangdong, China. The joint venture will encompass manufacturing, assembly and testing of air disc brakes for commercial trailers. Financial details are not being disclosed.

“The completion of our partnership agreement with Fuwa is another mark of WABCO’s continued success in globalizing our reach and growing our presence across the world,” said Jacques Esculier, WABCO Chief Executive Officer. “Our ambition in the next few years is to manufacture air disc brakes to equip up to 250,000 axles.”

“This partnership enables WABCO to offer its latest-design air disk brakes with competitive advantages such as robust single-piston technology, light-weight design, and high performance at lowest weight to Fuwa and other commercial vehicle manufacturers,” said Wu Zhiqiang, President of Fuwa. “With WABCO as our strategic partner, we further reinforce our leadership position in axles in the commercial trailer market, and we achieve the full potential of our long term growth.”

26/11/08

Source: http://trailer-bodybuilders.com/aftermarket/saf_holland_quality_award_1126/

SAF-HOLLAND announced that its Muskegon, Michigan, facility has won the prestigious Masters of Quality Award for 2007 from Daimler Trucks North America, Freightliner Custom Chassis Division.

The Muskegon facility, which has been manufacturing Neway brand air-ride suspensions for almost 60 years for heavy-duty vehicles, was one of only 48 suppliers chosen to receive the award from over 1,800 suppliers. Since 1987, Daimler has evaluated suppliers on more than 100 criteria, encompassing quality, delivery, continuous improvement and customer support.

Dale Barker and Leo Connolly of Daimler, at a plant-wide ceremony October 16, presented the Masters of Quality Award to SAF-HOLLAND’s Muskegon management and employees.

“SAF-HOLLAND places an extremely high value on quality of products and processes,” stated John Wieringa, Vice President, Quality and Environmental Systems. “It is gratifying to receive this award in recognition of the hard work of our employees. But, we won’t stop here. Our continuous improvement objective is to be recognized by all of our customers for quality and service.”

18/11/08

Source: http://www.arvinmeritor.com/media_room/

ArvinMeritor, Inc. (NYSE: ARM) today reported financial results for its full fiscal year and fourth quarter ended Sept. 28, 2008.

Fiscal Year 2008 Highlights

• Sales from continuing operations for fiscal year 2008 were $7.2 billion, up 11 percent compared to fiscal year 2007, due to strength in Europe and South America. This increase was four percent at constant exchange rates.
• On a GAAP basis, net loss was $101 million, or a loss of $1.40 per diluted share, due to non-cash income tax charges of $183 million which the company incurred in the fourth quarter primarily to repatriate cash to the United States.
• On a GAAP basis, loss per diluted share from continuing operations was $1.26 compared to $0.43 per diluted share in fiscal year 2007.
• Earnings per share from continuing operations, before special items, were $1.60 per diluted share, compared to $0.53 per diluted share in fiscal year 2007 – in line with the company’s full fiscal year guidance provided throughout the year.
• Free cash outflow (cash flow from operations, net of capital expenditures) of negative $9 million for the full fiscal year, significantly better than the forecasted range of negative $50 million to negative $100 million.

“Our team executed well in fiscal year 2008,” said Chairman, CEO and President Chip McClure. “We increased margins by 1.8 percentage points, before special items, in our Commercial Vehicle Systems business by sharpening operational performance in all regions, and we achieved our targeted savings of $75 million in cost reductions through our global Performance Plus profit improvement program.

“Although commercial and light vehicle volumes in North America were down dramatically from fiscal year 2007, we increased revenue from customers in Europe, South America and Asia Pacific. We also achieved our strategic objectives to grow our military business through an intense and dedicated focus on customer requirements for ArvinMeritor’s drivetrain products. And, we successfully strengthened our aftermarket business through organic growth and two key acquisitions which position us for greater market penetration globally,” said McClure.

Fourth-Quarter Highlights

• Fourth-quarter sales were $1.7 billion, up eight percent from the same period last year.
• On a GAAP basis, net loss from continuing operations was $165 million, or a loss of $2.29 per diluted share, due to non-cash income tax charges of $183 million primarily to repatriate cash to the United States.
• Fourth-quarter income from continuing operations, before special items, was $28 million, or $0.38 per diluted share, compared to a loss of $4 million, or $0.06 per diluted share in fiscal year 2007.
• Free cash flow was positive $103 million in the fourth quarter.

Fourth-Quarter Results 2008

For the fourth quarter of fiscal year 2008, ArvinMeritor posted sales of $1.7 billion, up eight percent from the same period last year. At constant exchange rates, sales were up three percent. This increase in sales was primarily due to higher volumes in military, off-highway and aftermarket products, and strong commercial vehicle production outside of North America. These items were offset by softness in the global light vehicle markets.

Operating income in the fourth quarter of 2008 was $40 million, compared to a loss of $16 million in the fourth quarter of fiscal year 2007. Excluding special items, operating income was $52 million, compared to $8 million in the prior year’s fourth quarter.

Income from continuing operations during the fourth quarter of fiscal year 2008, before special items, was $28 million, or $0.38 per diluted share, compared to a loss from continuing operations, before special items, of $4 million, or a loss of $0.06 per diluted share, a year ago. Favorable items that impacted fourth-quarter results in fiscal year 2008 were higher sales and operational improvements in supply chain management, application of lean fundamentals and direct material cost reduction programs.

Special items included non-cash income tax charges, restructuring costs and costs associated with the planned separation of the company’s Light Vehicle Systems (LVS) business group. These items accounted for approximately $2.67 per diluted share of expense in the fourth quarter.

Fiscal-Year Accomplishments

“Our results in fiscal year 2008 indicate that we have improved our ability to consistently run leaner operations, produce highly-engineered products for our customers, execute acquisitions, and manage the business at a profitable level despite a longer than anticipated downturn in the North American Class 8 truck market,” said McClure.

Specific accomplishments in 2008 include:

• Improved manufacturing performance through state-of-the-art technology across several of our core competencies, including advanced gear-cutting processes.
• Accelerated engineering and development to meet strong demand for Mine Resistant Ambush Protected (MRAP) programs.
• Grew U.S. aftermarket sales by six percent during a year in which the U.S. truck replacement part industry was down six percent from last year.
• Achieved $75 million in cost reductions through various initiatives related to manufacturing performance, direct and indirect material optimization and overhead savings within the Performance Plus program.
• Higher earnings, enhanced collections and credit management, and global inventory management favorably impacted cash flow in fiscal year 2008.

Cash and Liquidity

ArvinMeritor had $497 million in available cash balances and an undrawn, available amount of $626 million under its revolving credit facility as of Sept. 30, 2008. There are no current covenant constraints that limit the availability of this facility. Also, as of Sept. 30, 2008, the company utilized $521 million in factoring and securitization facilities – $419 million of which are pursuant to recently renewed 364-day committed liquidity facilities that extend to September and October of 2009. The company has no significant long-term debt maturity due until 2012.

Light Vehicle Systems Transaction Update

On Oct. 31, the company announced its plan to explore strategic alternatives for the LVS business. “Declining global market and credit conditions are the primary factors that have led us to expand our options for separating the LVS business group, excluding the Wheels business located in South America and Mexico,” said McClure. “After a comprehensive review of those options, we have determined that a sale will be our primary focus.”

J.P. Morgan is the company’s financial advisor related to the separation of the business.

2009 Priorities

“The work we did to strengthen the company in 2008 enables us to respond more quickly and efficiently to the deteriorating markets we are now anticipating in fiscal year 2009,” said McClure. “We have defined five key priorities that we will diligently focus on this year.” The five priorities include:

• Accelerate restructuring and cost reductions
• Improve operational performance in all areas
• Complete the separation of the light vehicle business, excluding wheels
• Expand high-margin segments
• Strengthen our product and technology position

Outlook for 2009

ArvinMeritor’s forecast for North American Class 8 truck production is in the range of 200,000 to 220,000 units in calendar year 2009, approximately the same as in 2008. The company’s forecast for heavy and medium truck volumes in Western Europe is in the range of 400,000 to 450,000 units, down approximately 25 percent from fiscal year 2008.

The company’s fiscal year 2009 financial guidance is for expected continuing operations – which includes ArvinMeritor’s commercial vehicle systems and wheels businesses. ArvinMeritor expects the remaining LVS businesses to be separated during 2009. The LVS outlook continues to be weak and may negatively affect the company’s overall financial condition and GAAP results of operations until the point of sale.

Sales for fiscal year 2009 are forecasted to be in the range of $4.9 billion to $5.2 billion. The company expects earnings per diluted share, excluding special items, to be in the range of $0.80 to $1.00. ArvinMeritor anticipates free cash flow for the fiscal year to be approximately breakeven.

Full-year expectations include approximately $50 million in savings from the company’s Performance Plus profit improvement program which is now focused on ArvinMeritor’s European operations, and $80 million associated with restructuring and cost reduction actions announced on Oct. 31, 2008.

19/11/08

Source: http://www.ad-hoc-news.de/DGAP-News-SAF-HOLLAND-Sales-Growth-in-the-First-Nine--/de/Unternehmensnachrichten/19871433

In the first nine months of 2008, SAF-HOLLAND S.A. achieved Group sales of EUR 646.3 million, corresponding to an increase of 5.4 percent over the comparable period of the previous year. Adjusted earnings before interest and taxes (EBIT) of EUR 46.4 million (previous year: EUR 46.6 million) remained stable. The European trailer business was an important driver of growth in the first half of 2008. However, the intensifying bank crisis and its effects on the industry slowed sales development in the third quarter. During this period, sales totaled EUR 188.3 million (previous year: EUR 201.8 million); adjusted for exchange rate effects, sales were EUR 194.7 million.

For the period from January through September 2008, profit was EUR 18.4 million (previous year: EUR 14.7 million), primarily as a result of the solid performance in the first half of 2008. In the last three months of the period under review, profit declined to EUR 1.1 million. The impact of underutilization of production capacity was the most important factor. In addition, it is possible to pass higher prices for materials along to customers only after a delay. The adjusted EBIT margin during the period from January to September amounted to 7.2 percent (previous year: 7.6 percent).

Rudi Ludwig, CEO of the SAF-HOLLAND Group, commented: 'The business environment has deteriorated to such an extent in recent months that the industry could be facing a difficult period. Therefore, we are adjusting our cost structures to new market conditions as quickly as possible. By the end of the year, we will have introduced all of the measures necessary to position the Company well for 2009. We remain committed to our long-term growth strategy even though we cannot achieve our goals in the originally designated time frame.'

Market position improved for the Powered Vehicle Systems Business Unit Despite a muted business environment, a noticeable revival of the Powered Vehicle Systems Business Unit that began in the second quarter continued during the past three months. Thus, the Business Unit was able to boost sales in the third quarter by 23.2 percent to EUR 23.4 million (previous year: EUR 19.0); adjusted for exchange rate effects, sales even rose by 35.3 percent to EUR 25.7 million. During the months from January to September 2008, the Business Unit's sales totaled EUR 60.4 million (previous year: EUR 64.1 million); adjusted for exchange rate effects, sales climbed to EUR 68.3 million. The Business Unit will benefit from additional growth stimuli in the future as a result of its entry into the European fifth wheel business via the acquisition of Georg Fischer Verkehrstechnik GmbH at the beginning of October 2008.

Product range expanded in the Trailer Systems Business Unit The business performance of the Trailer Systems Business Unit was characterized by a strong first half of the year and a weak third quarter. Overall, sales during the nine-month period grew by 10.9 percent to EUR 451.3 million (previous year: EUR 407.0 million); adjusted for exchange rate effects, sales rose by 13.1 percent to EUR 460.4 million. In the third quarter, sales declined as a result of the weaker market environment by 7.2 percent to EUR 123.5 million (previous year: EUR 133.7 million). As early as 2009, SAF-HOLLAND will commence production of its own axle systems in North America, thus rounding out its product range there for the trailer systems segment. Since the business combination of SAF and HOLLAND twenty months ago, progress has been made in facilitating technology transfer between the two predecessor companies.

Aftermarket Business Unit stabilizes business performance In the first nine months of 2008, the Aftermarket Business Unit of SAF-HOLLAND generated sales of EUR 134.6 million (previous year: EUR 142.3 million); adjusted for exchange rate effects, sales totaled EUR 144.5 million. Of this amount, EUR 41.4 million (previous year: EUR 49.1 million) accrued in the third quarter; adjusted for exchange rate effects, sales totaled EUR 43.4 million. These months were characterized by a somewhat slow summer and market weakness in September. In total, the Business Unit is contributing to the Group's overall performance with a share of sales of 21.5 percent and an EBIT margin of 16.2%.

Financial structure influenced by capital increase and acquisition As of September 30, total assets increased to EUR 592.3 million (12/31/2007: EUR 554.6 million). Equity rose to almost EUR 130 million (12/31/2007: EUR 108.2 million), driven in part by proceeds from a capital increase of about EUR 14 million in September. The equity ratio climbed to 21.9 percent (12/31/2007:19.5 percent). Reflecting the acquisition of the landing leg business of Austin-Westran and exchange rate effects, as of September 31, 2008 total short- and long-term loans amounted to EUR 282.6 million (12/31/2007: EUR 262.9 million). As of the same reporting date, cash flow from operating activities amounted to EUR 30.9 million (previous year: EUR 40.0 million). Its decline essentially mirrors the relationship of higher inventories to weaker sales. The combination of high demand for products in the early months of 2008, plant relocations, and the setting up of the Group's own axle production in North America led to an increase in inventories. In September, SAF-HOLLAND initiated a project to reduce net working capital in the second half of the year by about EUR 20 million.

Number of employees rose slightly During the nine months ended September 30, the Company had an average of 3,061 employees (12/31/2007: 2,996). The primary cause for the increase was the purchase of the landing leg business of Austin-Westran. Initial measures to adjust capacity to changing market conditions included the termination of approximately 130 subcontractor employment agreements.

Outlook For the full year 2008, the Company expects slight sales growth to about EUR 820 million (previous year: EUR 812.5 million), representing slower growth than had been anticipated prior to the economic downturn. The adjusted EBIT margin should reach about 6 percent (previous year: 7.4 percent), reflecting the impact of capacity underutilization through the end of the year caused by a distinct decline in orders. SAF-HOLLAND has introduced a series of programs to boost efficiency and reduce costs. In an initial step, employment agreements with contractors and temporary workers were terminated. By the end of the year, the number of employees is to decrease further. In addition, the closure of production sites in Europe and North America is planned. Additional projects, for example to reduce logistics costs, are underway or are close to being completed. These measures will help SAF-HOLLAND in fiscal year 2009 against the backdrop of a weaker market environment. The Group expects to benefit from the acquisitions of Georg Fischer Verkehrstechnik GmbH and Austin-Westran's landing leg product line. Additional factors are the start of axle production in North America as well as pending new major orders, which would generate additional growth in North America and China. The latter confirm SAF-HOLLAND's strong position as a systems supplier as the orders encompass the entire product range for trailers. The Group reiterates its long-term goal of achieving sales of at least one billion Euro combined with an EBIT margin of 10%.

19/11/08

Source: http://www.ad-hoc-news.de/DGAP-News-SAF-HOLLAND-Sales-Growth-in-the-First-Nine--/de/Unternehmensnachrichten/19871433

In the first nine months of 2008, SAF-HOLLAND S.A. achieved Group sales of EUR 646.3 million, corresponding to an increase of 5.4 percent over the comparable period of the previous year. Adjusted earnings before interest and taxes (EBIT) of EUR 46.4 million (previous year: EUR 46.6 million) remained stable. The European trailer business was an important driver of growth in the first half of 2008. However, the intensifying bank crisis and its effects on the industry slowed sales development in the third quarter. During this period, sales totaled EUR 188.3 million (previous year: EUR 201.8 million); adjusted for exchange rate effects, sales were EUR 194.7 million.

For the period from January through September 2008, profit was EUR 18.4 million (previous year: EUR 14.7 million), primarily as a result of the solid performance in the first half of 2008. In the last three months of the period under review, profit declined to EUR 1.1 million. The impact of underutilization of production capacity was the most important factor. In addition, it is possible to pass higher prices for materials along to customers only after a delay. The adjusted EBIT margin during the period from January to September amounted to 7.2 percent (previous year: 7.6 percent).

Rudi Ludwig, CEO of the SAF-HOLLAND Group, commented: 'The business environment has deteriorated to such an extent in recent months that the industry could be facing a difficult period. Therefore, we are adjusting our cost structures to new market conditions as quickly as possible. By the end of the year, we will have introduced all of the measures necessary to position the Company well for 2009. We remain committed to our long-term growth strategy even though we cannot achieve our goals in the originally designated time frame.'

Market position improved for the Powered Vehicle Systems Business Unit Despite a muted business environment, a noticeable revival of the Powered Vehicle Systems Business Unit that began in the second quarter continued during the past three months. Thus, the Business Unit was able to boost sales in the third quarter by 23.2 percent to EUR 23.4 million (previous year: EUR 19.0); adjusted for exchange rate effects, sales even rose by 35.3 percent to EUR 25.7 million. During the months from January to September 2008, the Business Unit's sales totaled EUR 60.4 million (previous year: EUR 64.1 million); adjusted for exchange rate effects, sales climbed to EUR 68.3 million. The Business Unit will benefit from additional growth stimuli in the future as a result of its entry into the European fifth wheel business via the acquisition of Georg Fischer Verkehrstechnik GmbH at the beginning of October 2008.

Product range expanded in the Trailer Systems Business Unit The business performance of the Trailer Systems Business Unit was characterized by a strong first half of the year and a weak third quarter. Overall, sales during the nine-month period grew by 10.9 percent to EUR 451.3 million (previous year: EUR 407.0 million); adjusted for exchange rate effects, sales rose by 13.1 percent to EUR 460.4 million. In the third quarter, sales declined as a result of the weaker market environment by 7.2 percent to EUR 123.5 million (previous year: EUR 133.7 million). As early as 2009, SAF-HOLLAND will commence production of its own axle systems in North America, thus rounding out its product range there for the trailer systems segment. Since the business combination of SAF and HOLLAND twenty months ago, progress has been made in facilitating technology transfer between the two predecessor companies.

Aftermarket Business Unit stabilizes business performance In the first nine months of 2008, the Aftermarket Business Unit of SAF-HOLLAND generated sales of EUR 134.6 million (previous year: EUR 142.3 million); adjusted for exchange rate effects, sales totaled EUR 144.5 million. Of this amount, EUR 41.4 million (previous year: EUR 49.1 million) accrued in the third quarter; adjusted for exchange rate effects, sales totaled EUR 43.4 million. These months were characterized by a somewhat slow summer and market weakness in September. In total, the Business Unit is contributing to the Group's overall performance with a share of sales of 21.5 percent and an EBIT margin of 16.2%.

Financial structure influenced by capital increase and acquisition As of September 30, total assets increased to EUR 592.3 million (12/31/2007: EUR 554.6 million). Equity rose to almost EUR 130 million (12/31/2007: EUR 108.2 million), driven in part by proceeds from a capital increase of about EUR 14 million in September. The equity ratio climbed to 21.9 percent (12/31/2007:19.5 percent). Reflecting the acquisition of the landing leg business of Austin-Westran and exchange rate effects, as of September 31, 2008 total short- and long-term loans amounted to EUR 282.6 million (12/31/2007: EUR 262.9 million). As of the same reporting date, cash flow from operating activities amounted to EUR 30.9 million (previous year: EUR 40.0 million). Its decline essentially mirrors the relationship of higher inventories to weaker sales. The combination of high demand for products in the early months of 2008, plant relocations, and the setting up of the Group's own axle production in North America led to an increase in inventories. In September, SAF-HOLLAND initiated a project to reduce net working capital in the second half of the year by about EUR 20 million.

Number of employees rose slightly During the nine months ended September 30, the Company had an average of 3,061 employees (12/31/2007: 2,996). The primary cause for the increase was the purchase of the landing leg business of Austin-Westran. Initial measures to adjust capacity to changing market conditions included the termination of approximately 130 subcontractor employment agreements.

Outlook For the full year 2008, the Company expects slight sales growth to about EUR 820 million (previous year: EUR 812.5 million), representing slower growth than had been anticipated prior to the economic downturn. The adjusted EBIT margin should reach about 6 percent (previous year: 7.4 percent), reflecting the impact of capacity underutilization through the end of the year caused by a distinct decline in orders. SAF-HOLLAND has introduced a series of programs to boost efficiency and reduce costs. In an initial step, employment agreements with contractors and temporary workers were terminated. By the end of the year, the number of employees is to decrease further. In addition, the closure of production sites in Europe and North America is planned. Additional projects, for example to reduce logistics costs, are underway or are close to being completed. These measures will help SAF-HOLLAND in fiscal year 2009 against the backdrop of a weaker market environment. The Group expects to benefit from the acquisitions of Georg Fischer Verkehrstechnik GmbH and Austin-Westran's landing leg product line. Additional factors are the start of axle production in North America as well as pending new major orders, which would generate additional growth in North America and China. The latter confirm SAF-HOLLAND's strong position as a systems supplier as the orders encompass the entire product range for trailers. The Group reiterates its long-term goal of achieving sales of at least one billion Euro combined with an EBIT margin of 10%.

7/11/08

Source: http://www.journalgazette.net/apps/pbcs.dll/article?AID=/20081107/BIZ/811070382

Plummeting auto sales continue to take a toll on auto parts supplier Dana Holding Corp.

The company, which employs 430 in an axle plant in Fort Wayne, announced Thursday that it would shut 10 plants by the end of 2010 and cut 5,000 workers this year. That was 2,000 more than the 3,000 announced earlier in the year.

There was no word Thursday on whether Dana’s Fort Wayne plant would be among those to be closed or whether its employees would be laid off.

“There is no list at this point,” corporate communications director Chuck Hartlage said. “We’ll be meeting with our union partners to make decisions about that.”

Representatives of the union that represents Fort Wayne Dana workers, United Steel Workers Local 903, couldn’t be reached Thursday for comment.

At its Fort Wayne plant, Dana makes light axles used in pickups and sport utility vehicles made by Chrysler Corp., Ford Motor Co., General Motors Corp. and Toyota Motor Corp.

The auto companies this week said their sales for October were their worst in decades.

Hartlage blamed the bad auto sales for parts orders that have been falling “quickly and dramatically.”

Both GM and Ford are scheduled to release third-quarter results this morning. Both companies have said that factory production must reflect declining sales, which means job cuts.

According to Ford’s top sales analyst and two people briefed on GM’s plans, neither automaker is planning to announce factory closures, although both are likely to cut production by eliminating shifts and imposing overtime bans or temporary plant shutdowns.

The people did not want to be identified because GM’s plans are confidential.

Toledo-based Dana announced the closures and job cuts as it released its third-quarter earnings.

Its sales were $1.93 billion, a 9 percent decrease from $2.13 billion in the same period in 2007.

Dana’s net loss for the three months ended Sept. 30 was $271 million. It lost $69 million during the same period in 2007.

That equates to a loss of $2.79 a share, compared with 46 cents a share in the year-earlier period.

Dana emerged in January after almost two years in bankruptcy.

 6/11/08

Source: http://www.forbes.com/markets/2008/11/06/dana-auto-vehicles-markets-equity-cx_ra_1106markets35.html

As the losses pile up, auto parts maker Dana Holdings announced it will try to control the damage by slashing jobs and shuttering plants.

On Thursday, Dana Holdings  reported a whopping third-quarter loss as the crippling crisis in the auto market slammed the company.

"The economic and market challenges we've faced all year were particularly difficult in the third quarter," said Executive Chairman John Devine. "The combination of lower industry volumes and peaking steel prices hit us sharply this quarter."

Dana’s shares fell 10.1%, or 19 cents, to $1.70 in afternoon trading.

Devine said the company expects to close 10 additional plants in 2009 and 2010, and will slash an additional 2,000 jobs. He added that Dana anticipates taking a charge of between $100.0 million and $150.0 million for its plant closures, but will likely save $40.0 million annually once the plants are closed.

The company said it was talking to lenders about changing the terms on its credit facility because it will not be able to meet its financial covenants as of Dec. 31. Dana’s Chief Financial Officer Jim Yost expects to complete an amendment to the facility with lenders in the next few weeks.

Dana only emerged from bankruptcy in February of this year. The company posted a third-quarter net loss of $271.0 million, or $2.78 per share, including an $8.0 million dividend payout to preferred shareholders, down from a loss of $69.0 million, or 42 cents per share, in the prior year.

Sales slumped 9.0%, to $1.9 billion, due to lower vehicle production in North America. The company was also hit by volatile steel prices and the ailing equity markets, Yost said.

The company forecast declines of up to 12.0% in 2009 revenue to a range of $7.2 billion and $7.3 billion, down from a projected $8.2 billion this year, because of the weak North American market.

Last week, car and truck parts maker ArvinMeritor announced it is slashing 7.0%, or 1,250 jobs, of its workforce. It's also looking at alternatives to a spin-off of its car parts unit due to the turmoil in the credit and financial markets. The company is mulling a sale of the unit.

Meanwhile, on Oct. 31, American Axle & Manufacturing reported a third-quarter loss, because of production cuts by major customers due to the weakening auto market.

Job cuts have also recently been announced by Federal-Mogul and Tenneco.