Dana Holding Corporation Business Report FY ended Dec. 2014

Business Highlights

Financial Overview

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 Rate of
change (%)
Net Sales  6,617 6,769 (2.2) -The sales decrease was primarily driven by weaker international currencies.
Adjusted EBITDA 746 745 0.1 -
Sales by region
North America 3,126 2,958 5.7 1)
Europe 1,978 1,994 (0.8)
South America 771 983 (21.6)
Asia Pacific 742 834 (11.0)

<North America>
-Sales in North America for 2014 grew 5.7% from 2013 due mainly to stronger production levels in the light vehicle and medium/heavy vehicle markets..

-Sales in Europe in 2014 were generally flat with 2013. The Company's Off-Highway segment has a significant European presence. The weaker demand in the markets served by this segment contributed to reduced sales. Largely offsetting the weaker off-highway demand were stronger production levels in the light vehicle market

<South America>
-South America sales in 2014 plunged 21.6% from 2013 due mainly to currency effects from a weaker Brazilian real and Argentine peso along with devaluation of the Venezuelan bolivar. Adjusted for currency effects, 2014 sales in South America were down about 4%. 

<Asia Pacific>
-Asia Pacific sales in 2014 were 11.0% lower than in 2013. Adverse currency effects resulted principally from a weakening of the Indian rupee, Thai baht, Australian dollar and Japanese yen.

Divested Venezuelan Operations

-In January 2015, the Company sold its Venezuelan subsidiary C.A. Danaven to an independent and locally operated company Manufacturing and Logistics Solutions Ltd.  Manufacturing and Logistics Solutions takes over the business in Venezuela, while the Company provides axle components for Manufacturing and Logistics Solutions as a Tier 2 supplier. C.A. Danaven had manufacturing and assembly plants in Valencia and Guacara with about 540 employees.

Major Contracts

GM Cadillac "CTS" HFV6 3.0L / HFV6 3.6L LY7 "Victor Reinz" cylinder head gaskets, exhaust and secondary gaskets, intake manifold gasket, heat shields, and valve seals
Gen IV 6.0L LSA Heat shields and exhaust manifold gaskets
Chevrolet "Corvette Stingray" "Victor Reinz" exhaust gaskets, secondary gaskets and heat shields. Additionally, the vehicle includes its "Long" brand transmission oil cooler, differential oil cooler and engine oil cooler
Chevrolet "Silverado" "Victor Reinz" heat shields, and its "Long" transmission oil cooler for the heavy-duty versions of the Silverado
Chrysler 2014 Ram "1500" EcoDiesel "Spicer" rear driveshaft, "Victor Reinz" exhaust gaskets, and "Long" active warm-up technology
Honda 2014 "Accord" "Victor Reinz" cylinder head cover module
Audi 3.0L TFSI Supercharged DOHC V-6 "Victor Reinz" cylinder head gasket and secondary gaskets
Chrysler Ram 3.0L Turbodiesel DOHC V-6 "Victor Reinz" exhaust gasket and "Long" active warm up
Fiat 83-kW Electric Motor "Long" battery chiller
GM Chevrolet 6.2L OHV V-8 "Long" engine oil cooler, "Victor Reinz" secondary gasket and exhaust gasket, and heat shields
Honda 3.5L SOHC V-6 "Victor Reinz" cylinder head cover modules
Volkswagen 1.8L Turbocharged DOHC I-4 "Long" engine oil coolers


-The Company was recognized by Hino Trucks with its Excellence in Quality Improvement Award. The Company supplies driveshafts to Hino from assembly facilities in Lima, Ohio, USA, and Jodalli, Karnataka, India. These products are used on a wide range of Hino medium-duty trucks as well as Toyota "Tundra" pickup trucks. (From a press release on June 17, 2014)

-The Company's Sorocaba, Brazil, facility was presented with the Toyota Quality Excellence Performance Award and its Bogota, Colombia, facility was recognized by General Motors Co. as Supplier of the Year in the powertrain and chassis category. The Company's Brazil facility received Toyota's award for supplying Hilux pickup trucks and SUVs with rear axle center sections. The Colombia facility received GM's recognition for outstanding performance in delivering driveshafts, axles, and modules, as well as excellent customer service. (From a press release on June 3, 2014)

Outlook for FY ending Dec. 31, 2015

-The Company expects 2015 sales to range between USD 6,400 million and USD 6,500 million, and adjusted EBITDA to range between USD 740 million and USD 760 million.


R&D Expenditure

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 176 165 161
% of Sales 2.7 2.4 2.2

R&D Facilities

-The Company holds eight standalone technical and engineering centers.
-In addition, the Company operates seven technical and engineering centers housed within manufacturing sites.

-The Company dedicated its 8,000 square-meter (90,000 square-foot) technology center in Pune, India. Home to more than 240 engineers, the Dana India Technical Center is strategically equipped and located to offer advanced engineering capabilities to original-equipment manufacturers in the light-vehicle, commercial-vehicle, and off-highway markets in India and throughout the region. The center combines design, finite element analysis, and testing for all of the Company's product groups under one roof. It includes an electronic controls lab, a testing area, a materials development lab, a prototype area, and an NVH and performance analysis lab for product development. The customers in India include Ashok Leyland Ltd., Caterpillar India, Deere and Co., Force Motors, Ford India, General Motors India, Mahindra & Mahindra, Mahindra Trucks and Buses Ltd., TAFE, Tata Motors, and VE Commercial Vehicle Ltd. Export customers include Caterpillar, Ford, Land Rover, Nissan, Renault, Still, and Toyota. (From a press release on January 28, 2014)

New Technologies & Products

New aluminum cooling technology
-The Company announced the introduction of a new aluminum cooling technology for electric and hybrid vehicles. Specifically, the Company is utilizing the efficiency of aluminum in its Long brand of integrated cooling plates that enhance heat transfer of insulated gate bipolar transistor (IGBT) switches. The IGBT cooling plates will be manufactured at its facility in Cambridge, Ontario, Canada, with production expected to begin in early 2015. (From a press release on November 3, 2014)

Steer axles
-The Company introduced additions to the Company's family of Spicer E-Series steer axles that deliver high performance and durability with up to 35 pounds less weight. Available in the first half of 2015, the axles are targeted for on-highway, city delivery, and bus chassis applications with gross axle weight ratings from 10,000 to 13,200 pounds. (From a press release on March 27, 2014)

-The Company announced that the Company has developed a new family of Spicer D-Series steer axles that will enable improved vehicle stopping power and reduced maintenance without the added weight that typically results from specifying air disc brakes. Available for applications with gross axle weight ratings from 10,000 to 14,600 pounds, the new Spicer D-Series steer axles will feature an integrated air disc brake (IADB) knuckle that allows fleets to specify air disc brakes without a net increase in weight over most S-cam drum brake axle systems. (From a press release on March 27, 2014)

Cylinder-head gaskets
-The Company exhibited its next-generation Victocor 500 cylinder-head gaskets at the Mid-America Trucking Show (MATS). To enhance stability and provide for superior radial strength of the combustion seals, the Victocor 500 gasket incorporates a steel core that is three times thicker than conventional head gaskets. (From a press release on March 27, 2014)

Investment Activities

Capital Expenditure

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Light Vehicle 129 82 47
Commercial Vehicle 38 40 30
Off-Highway 23 33 22
Power Technologies 30 33 24
Eliminations and other 14 21 41
Total 234 209 164

Investments Outside USA

-The Company launched production for its Victor Reinz multi-layer steel (MLS) cylinder head gaskets, exhaust gaskets, and transmission valve body separator plates at its facility in Wuxi, Jiangsu Province, China. Its 12,000 square-meter (129,000 square-foot) technical center is a comprehensive engineering and manufacturing facility that enables the Company to develop and produce Victor Reinz sealing solutions within its Wuxi campus. The expanded manufacturing footprint will immediately support its key customers with local operations in China, as well as offer further support for customer growth in the Asia-Pacific region. (From a press release on May 20, 2014)