Dana Holding Corporation Business Report FY2011

Business Highlights

Financial Overview

(in million dollars)
  FY2011 FY2010 Rate of
change (%)
Net Sales  7,592 6,109 24.3 1)
Adjusted EBITDA 765 553 38.3 -
Sales by region
North America 3,385 2,960 14.4 2)
Europe 2,094 1,579 32.6
South America 1,334 839 59.0
Asia Pacific 779 731 6.6

-Sales increased by 24.3% (1,483 million dollars) in 2011 as compared to 2010. The overall strengthening of several international currencies against the U.S. dollar accounted for 192 million dollars of the increase. Net acquisition and divestiture activity added 256 million dollars to sales, with the strategic agreement with SIFCO completed in February 2011 and the Axles India purchase in June 2011 increasing sales by 404 million dollars and the sale of substantially all of our Structural Products business in March 2010 reducing sales by 148 million dollars.

<North America>
-The increase in sales in North America during 2011, adjusted for the effects of currency and divestitures, totaled 500 million dollars — a 17% increase on 2010 sales. The growth was largely due to increased OEM production levels in the light vehicle and medium/heavy truck markets.

-Excluding currency effects, 2011 sales in Europe were 26% higher than in 2010. The businesses in Europe benefited from improved medium/heavy vehicle production levels, which were more than 30% higher than last year, and light vehicle production which was about 5% stronger.

<South America>
-In South America, sales benefited by 390 million dollars from the SIFCO agreement. Exclusive of these effects and currency movement, 2011 sales in South America were up 15% versus 2010, primarily as a result of stronger production levels.

<Asia Pacific>
-The organic sales growth of 1% for 2011 in Asia Pacific reflects overall production levels for the region which were about the same as 2010, tempered by the effects of the 2011 earthquake in Japan and floods in Thailand.

-The Company expects 2012 sales to exceed 8,000 million dollars (up more than 5% over 2011) primarily as a result of increased demand levels in most of our markets.


-The Company announced that it has signed a definitive agreement with Axles India, Ltd. (AIL), to acquire select assets of AIL's commercial truck axle business. AIL is a joint venture between Dana and two India-based companies, Wheels India Limited, Sundaram Finance Group. Dana will assume full ownership of AIL's axle drive head and final axle-assembly operations. AIL will continue to manufacture axle housings for Dana and other customers. Closing of the transaction is expected to be completed in the second quarter of 2011. The Company's investment of 13 million USD in this transaction is expected to generate approximately 50 million USD in annual revenue. (From a press release on April 25, 2011)


-The Company announced it has completed the sale of its equity in two joint ventures, Getrag Corporation of U.S. and Getrag All Wheel Drive of Sweden, to Getrag Corporate Group for 136 million USD. The two joint ventures produce rear axle units, power take-off units, and all-wheel-drive systems for light vehicles. (From a press release on September 30, 2011)

-The Company announced that it has signed definitive agreements to sell its equity in two joint ventures, both with Getrag subsidiaries, to Getrag Corporate Group. The two joint ventures are Getrag Corporation of U.S. and Getrag All Wheel Drive of Sweden. Getrag Corporation, in which Dana holds a 49 percent interest, produces rear axle units, power take-off units and timing gears. Getrag All Wheel Drive produces all-wheel drive systems and chassis components. Getrag Dana Holding GmbH owns 60 percent of Getrag All Wheel Drive, a joint venture with Volvo. Dana will receive 136 million USD for the equity stakes in the two joint ventures. The transaction is expected to close in September 2011. These transactions are part of a transaction between Getrag and GKN plc. Immediately following the sale of Dana interests in the joint ventures, Getrag will sell these assets to GKN. (From a press release on July 28, 2011)

Joint Ventures

-The Company announced that it has acquired from Dongfeng Motor Co., Ltd (DFL) an additional 46 percent equity in Dongfeng Dana Axle Co., Ltd. (DDAC), a China-based joint venture, to achieve equal ownership. Dana paid 124 million USD to DFL. Headquartered in Xiangyang, Hubei Province, DDAC is the supplier of truck axles to Dongfeng Motor Co., Ltd. DDAC, originally formed in 2005, currently offers a complete range of truck axles in the Chinese market, including drive, steer, tandem, and hub-reduction axles for light-, medium-, and heavy-duty trucks, as well as buses. DDAC achieved 2010 sales of nearly 1 billion USD. (From a press release on July 5, 2011)

Recent Development Outside USA

-The Company signed an agreement with Sifco S.A. of Brazil, which enables Dana to acquire the distribution rights of truck and bus steer axles in South American market. This agreement will position the Company as a full-line supplier of commercial vehicle drivelines including front and rear axles, drive shafts, and suspension components. The Company invested 150 million USD to get the rights to the business, which is expected to generate 350 million USD in annual revenue, taking the Company's total revenue in South America to more than 1 billion USD. (From a press release on February 8, 2011)

Business Partnership

-The Company and Eaton Corporation announced that the marketing relationship between the two companies will end by the middle of 2012. Over the next six months, each company will be preparing to sell and service customers independently of each other. Eaton will continue to provide field service and support for all Eaton and Dana products through the middle of 2012 under the Roadranger brand. The Company will have the support systems in place to service its customers directly. (From a press release on December 6, 2011)


-In 2011, the Company was awarded more than 1 billion dollras in cumulative net new business. More than 40% of these awards represent conquests over competitors.
Maker / Model Products
Blue Bird Corporation Drive axle

GM Chevrolet "Volt" (1.4Litter DOHC I-4/111kW)

-Battery cell cooling plate for an electric vehicle
-Battery cooler
-Thermal bypass valve
Audi "S4" (3.0Liter TFSI Supercharged DOHC V-6) Cylinder-head gasket
BMW "335i" (3.0Liter N55 Turbocharged DOHC I-6) Cylinder-head gasket

Chrysler Dodge "Avenger" (3.6Liter Pentastar DOHC V-6)

-Exhaust system gasket
-Fuel cooler
Ford "Mustang GT" (5.0Liter DOHC V-8) -Oil pan gasket
-Cam cover
-Exhaust system gasket
-Engine oil cooler
-Valve stem seal
Ford "Edge" Active and passive warm-up unit
Ford "Focus" Battery cooling system
Ford "Transit Connect" Battery cooling system
Tesla "Roadster Sport" Battery cooling system
Volkswagen "Jetta" (TDI 2.0Liter DOHC I-4) -Cylinder-head gasket
-Exhaust manifold gasket
-Exhaust gas recirculation gasket

Volvo "S60" (3.0Liter Turbocharged DOHC I-6)

-Fuel cooler
-Heat shield


R&D Expenditure

(in million dollars)
  FY2011 FY2010 FY2009
Overall 155 132 119

-The Company announced that it will receive a 2 million USD grant from the Province of Ontario, Canada for the ongoing development and manufacture of lithium-ion battery cooling technologies needed for electric and hybrid-electric vehicles. The grant will support the Company's research and development work at its thermal products engineering center in Oakville, manufacturing at its plant in Cambridge, and collaboration with several Ontario universities in the development of battery cooling systems. The Company will invest up to 37 million USD in its Oakville and Cambridge facilities over the next five years. (From a press release on August 24, 2011)

R&D Facilities

-The Company holds 15 technical centers.

-The Company announced that it broke ground on a technical center in Wuxi, Jiangsu province, China. The new technical center will research and develop commercial vehicle driveshafts; light-duty axles and driveshafts; and sealing and thermal products, including electric vehicle battery coolers. The center is expected to be fully operational by the end of 2011. The new facility will encompass 130,000 square feet (12,000 square meters) of space and employ nearly 200 people. (From a press release on May 10, 2011)

Product Development

-The Company unveiled its new line of Long active and passive warm-up units. The units are being supplied to Ford Motor for the 2012 Ford Edge. The Company's technology combines the thermal bypass valve with the active warm-up unit to deliver an integrated system that increases the system's response time. Early testing of the units at the Company's engineering facility in Oakville, Ontario, Canada, demonstrated fuel savings of up to 4 percent. The units will be manufactured at the company's facilities in Rochester Hills and St. Clair, Michigan, U.S.. (From a press release on October 18, 2011)

-The Company announced that it developed a new lightweight fin technology, which extends battery life by enabling optimal cooling of electric vehicle's lithium-ion battery pack while it charges. The system helps the automaker remove heat from tightly packed battery cells through the use of flexible aluminum fins that create a channel for air to reach the surface of each cell module. The assemblies are manufactured at its facility in Guiscard, France. The Company's battery cooling technologies have been featured on 16 hybrid-electric and electric vehicles, including the Chevrolet Volt, Ford Focus, Ford Transit Connect, and Tesla Roadster Sport. (From a press release on July 21, 2011)

-The Company developed a new family of heavy-duty 40,000-pound tandem drive axles Spicer Pro-40. The axle is 100 pounds lighter than the current Dana Spicer DS404. The Spicer Pro-40 axle represents the ideal specification for commercial trucks with 9-, 10-, 12-, or 13-speed overdrive transmissions; diesel engines rated up to 475-horsepower and 1750 lb-ft. of torque; and Gross Combination Weight Ratings up to 80,000 pounds. The Spicer Pro-40 is planned to be available for initial shipments later this year. (From a press release on March 31, 2011)

Investment Activities

Capital Expenditure

(in million dollars)
  FY2011 FY2010 FY2009
LVD 71 61 30
Power Technologies 34 17 29
Commercial Vehicle 49 15 23
Off-Highway 21 10 4
Structures - 2 9
Eliminations and other 21 15 4
Total 196 120 99