Dana Holding Corporation Business Report FY ended Dec. 2012

Business Highlights

Financial Overview

(in million dollars)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 Rate of
change (%)
Net Sales  7,224 7,544 (4.2) 1)
Adjusted EBITDA 781 765 2.1 -
Sales by region
North America 3,371 3,337 1.0 2)
Europe 2,021 2,094 (3.5)
South America 925 1,334 (30.7)
Asia Pacific 907 779 16.4

-Sales for 2012 declined 4% from 2011, principally due to overall weakening of several international currencies against the U.S. dollar which reduced sales by 322 million dollars. The net impact of acquisitions and divestitures added 14 million dollars, while the organic change-the impact on sales attributable primarily to market volume, pricing and mix-decreased sales by 12 million dollars. Pricing actions, principally relating to material recovery, increased sales in 2012 by 108 million dollars, with market volume, new business and scheduled program roll-offs resulting in reduced sales of 120 million dollars.

<North America>
-The increase in sales in North America during 2012, adjusted for the effects of currency and a divestiture, totaled 61 million dollars-a 2% increase on 2011 sales. The growth was largely due to increased OEM production levels in the light vehicle and medium/heavy truck markets.

-Excluding currency effects, its 2012 sales in Europe were 4% higher than in 2011. New customer programs in LVD and Off-Highway, increased aftermarket sales and Off-Highway export sales were the primary drivers of the organic sales increase, more than offsetting the effects of lower light vehicle and medium/heavy truck production levels.

<South America>
-South America sales in 2012 were adversely impacted by currency and significantly lower market demand. With medium/heavy truck production down 23% and light vehicle production down 1%, lower production levels were the principal factor in sales exclusive of currency effects being 23% lower than in 2011.

<Asia Pacific>
-The AIL acquisition in the second quarter of 2011 contributed 18 million dollars of the Asia Pacific 2012 sales increase. The organic sales growth of 18% in Asia Pacific primarily reflects the improving production levels in the region as compared to 2011 along with increased sales from new customer programs.


Maker / Model Products
Audi "A6" 3.0L TFSI Supercharged DOHC V-6 Cylinder-head gaskets

Buick "Regal GS" 2.0L Turbocharged DOHC I-4

Secondary gaskets, engine oil coolers, and valve stem seals
Chrysler "300S"/Jeep "Wrangler" 3.6L Pentastar DOHC V-6 MLS exhaust system gaskets
Ford "Edge" 2.0L EcoBoost DOHC I-4 Cylinder-head gaskets, exhaust system gaskets, thermal-acoustical protective shielding (TAPS), and engine oil coolers

Ford "Mustang Boss 302" 5.0L DOHC V-8

Cylinder-head cover modules, exhaust system gaskets, secondary gaskets, engine oil coolers, and valve stem seals
Nissan Infiniti "M35h" 3.5L DOHC V-6 HEV TAPS
"Mazda3" 2.0L Skyactiv DOHC I-4 TAPS
Range Rover "Evoque" MLS gaskets and engine oil coolers

Business Partnership

-The Company, Allison Transmission Holdings Inc., and Fallbrook Technologies Inc. announced the formation of strategic relationships to develop, manufacture, and commercialize transmissions for passenger vehicles, commercial vehicles, and off-highway equipment. Fallbrook's NuVinci CVP technology, which enables designers to reduce the complexity of transmissions, superchargers, and other powertrain systems and allows the engine to operate at more efficient speeds, will be licensed to Allison and Dana. Full-scale production of off-highway transmissions with NuVinci-equipped components in Dana's served markets is expected within the next three to five years, while implementation in passenger and commercial vehicles is anticipated before the end of this decade. (From a press release on September 13, 2012)

-The Company has been honored by GM with four Supplier Quality Excellence Awards. Dana Power Technologies Group facilities in Avilla, Indiana, the U.S.; Chatham, Ontario, Canada; Neu-Ulm, Bavaria, Germany; and St. Clair, Michigan, the U.S., were recognized. (From a press release on October 18, 2012)


R&D Expenditure

(in million dollars)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 FY ended Dec. 31, 2010
Overall 161 155 130

R&D Facilities

-The Company holds 6 technical centers with additional research and development activities carried out at 10 additional sites.

Product Development

Multi-layer Steel (MLS) Transmission separator plates
-The Company has developed multi-layer steel (MLS) transmission separator plates capable of withstanding three times the sealing pressures of current products in the light-vehicle market. Traditional single-layer transmission valve body plates using paper gaskets have limited sealability, resulting in reduced efficiency due to oil leakage, as well as potential warranty concerns due to bond failures, paper erosion, and particle contamination. By leveraging its expertise in MLS cylinder-head gasket technology, the Company can substantially increase valve body sealing for transmissions to more than 1,200 pounds per square inch (PSI). The MLS transmission separator plates were developed at the Company's technical center in Neu-Ulm, Germany, and will be produced at its facilities in Neu-Ulm, and Danville, Kentucky, the U.S. (From a press release on July 30, 2012)

Transmission separator plates
-The Company launched into production several new technologies in the second quarter of 2012, including: Victor Reinz transmission separator plates. Leveraging its multi-layer steel cylinder-head expertise, the Company developed a tighter, more durable seal for seven-, and eight-speed and continuously-variable transmissions in light-duty vehicles. (From a press release on July 26, 2012)

Investment Activities

Capital Expenditure

(in million dollars)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 FY ended Dec. 31, 2010
LVD 47 71 61
Power Technologies 24 34 17
Commercial Vehicle 30 49 15
Off-Highway 22 21 10
Eliminations and other 41 21 17
Total 164 196 120