Dana Holding Corporation Reports Second-Quarter 2008 Results

TOLEDO, Ohio, Aug. 7, 2008 -- Dana Holding Corporation has announced its second-quarter 2008 results.

  (Logo:  http://www.newscom.com/cgi-bin/prnh/19990903/DANA )

  Second-quarter highlights include:
  -- Sales of $2,333 million, a 2-percent increase compared to 2007,
     primarily because of currency effects;
  -- Net loss of $140 million, including an $82 million non-cash impairment
     charge.  This compares to a net loss of $133 million in the second
     quarter of 2007;
  -- Earnings before interest, taxes, depreciation, amortization, and
     restructuring (EBITDA) of $128 million, compared with $143 million in
     2007;
  -- Strong cash balance of $1.2 billion and total liquidity of $1.6 billion
     at June 30, 2008; and
  -- Free cash flow of $38 million.

  Dana Making Progress in Turnaround

"We are making progress in our turnaround despite unprecedented headwinds in North America," said Executive Chairman John Devine. "The combination of much lower production volumes and higher steel costs has put considerable pressure on our 2008 operating results.

"But we are working to offset these challenges through pricing, additional restructuring, and cost reductions," he added. "And we remain focused on our game plan to turn around Dana by rebuilding the management team, improving operations, tightening our strategic direction, and employing a strong balance sheet."

Added Chief Executive Officer Gary Convis, "For the near term, we continue to scale our North American operations - through facility consolidations and workforce reductions - to reflect a market that's very different than what was expected just six months ago. This will necessitate the reduction of approximately 3,000 positions over the course of 2008, including the planned reduction of 500 salaried positions announced last week. At the same time, we are experiencing modest employment growth in the markets where our business is performing better.

"Longer term, we're picking up speed with introducing what is essentially a new way of managing our business, manufacturing our products, and measuring our performance worldwide," he added. "The new Dana Operating System is already enabling our people to drive improved product quality, customer satisfaction, and financial performance."

Business Highlights

Total EBITDA of $128 million in the second quarter was $15 million below 2007 results for the same period. This primarily reflected higher steel costs of $25 million (net of recovery actions), lower North American production of $22 million, unfavorable currency effects of $26 million, and reduced non- steel pricing of $6 million. These negative developments were partially offset by cost savings of $64 million.

At June 30, 2008, cash balances remained strong at $1.2 billion, with available global liquidity of $1.6 billion. Free cash flow was $38 million for the second quarter, which was largely achieved through reduced working capital of $69 million during the period.

Six-Month Results

Sales for the six months ended June 30, 2008 were $4,645 million which compares to $4,434 million for the same period in 2007. For the first six months of 2008, the company reported net income of $545 million compared to a net loss of $225 million for the same period in 2007. The six-month 2008 results include a net gain of $754 million recognized in connection with the company's emergence from bankruptcy and application of fresh start accounting in January.

EBITDA of $275 for the first six months of 2008 improved from the $247 million for the same period in 2007, as cost reduction actions initiated during the first half of 2008, combined with previously achieved annual cost savings and pricing improvements more than offset the earnings reduction attributable to lower North American production levels and higher steel costs.

Dana to Host Second-Quarter Conference Call at 10 a.m. Today

Dana will discuss its second-quarter results in a conference call at 10 a.m. EDT today. Participants may listen to the audio portion of the conference call either through audio streaming online or by telephone. Slide viewing is only available online via a link provided on the Dana Investor Web site. To dial into the conference call, domestic locations should call 1-888- 311-4590 (Conference I.D. # 55462661). International locations should call 1- 706-758-0054 (Conference I.D. # 55462661). Please ask for the Dana Holding Corporation Financial Webcast and Conference Call. Phone registration will be available beginning at 9:30 a.m. An audio recording of the call will be available after 5 p.m. To access this recording, please dial 1-800-642-1687 (U.S. or Canada) or 1-706-645-9291 (international) and enter the conference I.D. number 55462661. A webcast replay will also be available after 5 p.m. today, and may be accessed via the Dana Investor Web site.