Dana Business report FY2007
|(in million USD)||FY2007||FY2006||Rate
|Net Sales||8,721||8,504||2.6%||-Currency movements increased
2007 sales by 318 million USD due to an overall weaker USD.
-Sales in 2007 were reduced by net divestiture impacts, principally due to a 152 million USD reduction resulting from the sales of its trailer axle business.
-Partially offsetting this loss of sales was an increase resulting from the purchase of the axle and driveshaft businesses previously owned by Spicer S.A., Mexico.
|Sales by Segment|
|ASG||5,934||5,567||6.6%||-Customer-related pricing improvements contributed approximately 150 million USD to organic sales growth, while the net effects of significantly lower commercial vehicle production, somewhat higher light vehicle production and net sales mix reduced organic sales.|
|HVTSG||2,784||2,914||(4.5%)||-Commercial Vehicle segment is heavily concentrated in the North American market and the organic sales decline of 18.7% was primarily due to the drop in North American production levels.|
HVTSG : Heavy Vehicle Technology and Systems
The Company began supplying Spicerﾂｮ drivetrain products - including front and rear propshafts and front suspension modules - to Chrysler Group for the 2007 Dodge Nitro. (From a press release by the company on Jan. 23, 2007)
The Company announced that it is providing important engine content for the new Ford S-MAX. Contributions to the Ford S-MAX include the Company's thermal-acoustic protective shielding (TAPS) for the vehicle's exhaust system. (From a press release by the company on Jan. 25, 2007)
The Company is supplying its Victor Reinzﾂｮ multi-layer steel (MLS) cylinder-head gaskets for the Bugatti high-performance W16 engine. The W16 engine powers the new Bugatti Veyron 16.4 super sports car. (From a press release by the company on Feb. 15, 2007)
The Company began supplying steel and bi-metallic Spicerﾂｮ propshafts, as well as full-perimeter frames, for the redesigned 2007 Toyota Tundra pickup truck. It is supplying 100 percent of the propshafts for both the two-wheel- and four-wheel-drive versions of the Tundra. This is the first time that the Company has supplied bi-metallic propshafts to Toyota.(From a press release on Feb. 27, 2007)
The Company is supplying Spicerﾂｮ front and rear axles and Spicer Life Seriesﾂｮ front and rear propshafts to the Chrysler Group for the new 2007 Jeepﾂｮ Wrangler. The enhanced axles and Spicer Life Series propshafts are designed to reduce noise, vibration, and harshness (NVH), while the propshafts also help to improve crash performance. It has provided axles and propshafts continuously for the Jeep Wrangler since 1941. The supply arrangement is believed to be the longest in the automotive industry. (From a press release on Mar. 21, 2007)
The Company announced that it has been selected to supply Spicerﾂｮ rear beam axles for the new Renault Mascott rear-wheel-drive vans and chassis-cab vehicles produced by Renault Trucks. It earned this new business by offering axles that are lightweight and could be brought to market very quickly. (From a press release on Aug. 1, 2007)
The Company is supplying propshafts and auxiliary transmission oil coolers for the new Nissan Rogue crossover vehicle. It is providing its Spicer Life Seriesﾂｮ propshaft improves noise, vibration, and harshness(NVH) performance. (From a press release on Aug. 8, 2007)
The Company began supplying Spicerﾂｮ transmission assemblies, Spicerﾂｮ driveshafts, Victor Reinzﾂｮ gaskets, and Longﾂｮ radiators for the newly released Polaris Ranger RZR. The Spicer transmission assemblies are produced at its Fredericktown, Ohio, facility. (From a press release on Sep. 27, 2007)
The Company began supplying Spicerﾂｮ drivetrain products - including front and rear propshafts and front suspension modules - to Chrysler LLC for the all-new 2008 Jeepﾂｮ Liberty. Its SpicerR Life Seriesﾂｮ front and rear propshafts reduce noise, vibration, and harshness (NVH) levels. (From a press release on Nov. 6, 2007)
During 2007, the Company completed the closure of 15 facilities. Additional facilities will close in 2008 and 2009.
The company and its subsidiary, Dana Canada Corporation completed the sale of their trailer axle manufacturing assets to Hendrickson USA, L.L.C., a subsidiary of The Boler Company, and its affiliates. (From a press release by the company on Jan. 8, 2007)
The Company completed the sale of its engine hard parts business to MAHLE GmbH. The engine hard parts business consists of 39 facilities, which manufacture piston rings, engine bearings, cylinder liners, and camshafts. (From a press release on Mar 9, 2007)
The Company completed the sale of its European fluid products hose and tubing operations to Orhan Holding, A.S.. (From a press release on Jul. 5, 2007)
The Company completed the sale of its North American coupled fluid products business to Coupled Products Acquisition LLC, a wholly owned subsidiary of Wanxiang (USA) Holdings Corporation. The sale substantially concludes the overall divestiture of its fluid products business. (From a press release on Sep. 24, 2007)
In January 2006, Ford has extended its contract with the Company to supply the full-perimeter frame for the F-150 full-size pickup. The Company has supplied the full-perimeter frame for the F-150 for more than 30 years. Depending on the engine and transmission configuration, it also supplies the transmission oil cooler, piston rings, and various gaskets and fluid-transfer products for the Ford F-150.
In February 2006, the Company has been awarded a contract to continue supplying full-perimeter frames for the redesigned 2007 Ford Expedition and Lincoln Navigator, as well as the all-new Expedition EL and Navigator L. The Company has been supplying the frames for Expedition and Navigator since their introduction in 1997, and it also supplies the transmission oil cooler, various gaskets, and fluid-transfer products.
In July 2006, the Company begun supplying cylinder-head cover modules for the 3.0L Duratec V-6 engine appearing on the Ford Freestyle, Ford Five Hundred, and Mercury Montego vehicles.
In July 2006, the Company announced that it and Desc S.A. de C.V. have completed the dissolution of their Mexican joint venture. The closing of this transaction provides the Company with full ownership of several core operations based in Mexico, which will operate under Dana Holdings Mexico, S. de R.L. de C.V., a new Dana subsidiary. The Company and Desc dissolved their joint venture, Spicer S.A. de C.V., with the Company assuming 100-percent ownership of operations that manufacture and assemble axles, driveshafts, gears, forgings, and castings in which the Company previously held an indirect 49-percent interest. Desc, in turn, has assumed full ownership of the transmission and aftermarket gasket operations in which it previously held a 51-percent interest.
Consolidation, Divestitures and Realignment of Operation under the scheme of Reorganization under Chapter 11 of the Bankruptcy Code:
-The Company has committed to the closure of certain locations and consolidation of its operations into lower cost facilities in other countries or into U.S. facilities that currently have excess capacity. These actions included moving driveshaft machining operations from Bristol, Virginia, to its recently acquired operations in Mexico and moving axle assembly operations from Buena Vista, Virginia, to its Dry Ridge, Kentucky and Columbia, Missouri facilities. The Company also began the process of closing three Sealing and Thermal facilities in the U.S. and one in Canada, a Driveshaft facility in Charlotte, North Carolina, and a Structures plant in Canada.
During the fourth quarter of 2006, the Company announced additional closures of two Axle facilities in Syracuse, Indiana, and Cape Girardeau, Missouri, and two Structures facilities in Guelph and Thorold, Ontario. In the first quarter of 2007, the Company also announced closure of a Driveshaft plant in Renton, Washington, which will be integrated into its Louisville, Kentucky operation. The Company expects to close four additional facilities, with announcements expected later in 2007.
-In September 2006, the Company announced that it and two affiliates have entered into asset purchase agreements with Hendrickson USA, L.L.C., a subsidiary of The Boler Company, and its affiliates for the sale of Dana's trailer axle manufacturing business. Under terms of the agreements, the buyers will acquire certain assets located in Lugoff, S.C., USA; Barrie, Ontario, Canada; and Wuxi, China, which are used to manufacture heavy-duty trailer axles and suspensions for an aggregate price of approximately $38 million in cash. The buyer will also assume certain liabilities related to the business. The transactions are subject to the approval of the United States Bankruptcy Court for the Southern District of New York, which has jurisdiction over Dana's Chapter 11 reorganization proceedings.
-In December 2006, the Company announced that it has entered into a stock and asset purchase agreement with MAHLE GmbH, a leading supplier to the automotive and engine industries, for the sale of its non-core engine hard parts business. The agreement provides for MAHLE and certain of its affiliates to acquire the equity and tangible and intangible assets of the global operations comprising its engine hard parts business from the Company and certain of its affiliates for an aggregate price of approximately $157 million. Closing of the transaction is subject to the approval of the United States Bankruptcy Court for the Southern District of New York, which has jurisdiction over Dana's Chapter 11 reorganization proceedings.
-At December 31, 2007, Automotive Systems Group (ASG) had five major technical centers and Heavy Vehicle Technology and Systems (HVTSG) had one.
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