Dana Business report FY2008
|Financial Overview||(in million dollars)|
|FY2008||FY2007|| Rate of
-Light Axle sales declined 18% due principally to lower light truck production levels in North America and Europe.
-Increased pricing and favorable currency effects provided a partial offset to the effect of lower production levels in the Light Axle.
-Driveshaft segment serves both the light-duty automotive and commercial vehicle markets.
-Since commercial vehicle production levels did not decline as significantly as those on the light-duty side, sales in this segment were down only 1.8%.
-Increased pricing and favorable currency effects provided a partial offset to the effect of lower production levels in Driveshaft segments.
-Sealing business supports the commercial vehicle market and has a proportionately larger share of business in Europe where the production declines were lower than in North America and a stronger euro provided favorable currency effect.
-Thermal sales declined 11.6%, primarily due to lower North American production levels partially offset by favorable currency effect.
- Lower North American production was the primary factor leading to an 18% reduction in sales in the Structures business.
-Commercial Vehicle segment is heavily concentrated in the North American market and the overall sales decline of 3.9% in this segment was primarily due to the drop in North American production levels.
-Stronger markets outside North America and some pricing improvement partially offset the weaker North American production.
-With its significant European presence, Off-Highway segment benefited from the stronger euro.
-Exclusive of favorable currency effects of 178 million USD, Off-Highway sales increased 5% due to stronger production levels during the first half of 2008, sales from new programs and increased pricing.
-In Jul. 2008, the Company announced that it has begun supplying Spicer(R) front differential assemblies for the all-new BMW X6 Sports Activity Coupe. The front differential for the X6 is assembled at the Company's manufacturing facility in Orangeburg, S.C. The Company also manufactures front and rear differentials for the BMW X5 and front differentials for the BMW X3 at this facility. (From a press release on Jul 24, 2008)
-In Feb. 2009, the Company announced that it has begun supplying Spicer Life Series(R) propshafts for the 2009 Cadillac CTS-V, a GM model. The Company also supplies Victor Reinz(R) cam cover gaskets, exhaust manifold gaskets, and Long(R) auxiliary transmission oil coolers, for the CTS-V. (From a press release on Feb 4, 2009)
Restructuring in 2008
-In Jan. 2008, the Company announced the closure of Barrie, Ontario Commercial Vehicle facility.
-In Jun.2008, the Company announced the closure of Light Axle foundry in Venezuela.
-In the third quarter of 2008, the Company entered into an agreement to sell its corporate headquarters.
-In Oct. 2008, the Company announced the planned closure of Magog Driveshaft facility in Canada.
-In 2008, the Company achieved a global workforce reduction of approximately 6,000 employees of which approximately 5,000 occurred in North America.
-In 2009, the Company plans to reduce global workforce more than 6,000 reduced in 2008
|R&D Expenditure||(in million dollars)|
-At December 31, 2008, the Company had had seven major technical centers.
-The Company is developing a number of products for vehicular and other applications that will assist fuel cell, battery and hybrid vehicle manufacturers
-Sealing segment is developing metallic and composite bipolar plates used in the fuel cell stack.
-Thermal segment is applying its heat transfer technology to provide thermal management sub-systems needed for fuel cell and hybrid electric engines as well as catalytic reactors for conversion of fuels to hydrogen for stationary fuel cell systems.
|Capital Expenditure||(in million dollars)|