August 13, 2007 -- Dana Corp. has posted a second-quarter net loss of US$133 million amid continuing efforts to restructure under Chapter 11 bankruptcy protection. Dana posted the earnings result, nearly five times the loss suffered in the same quarter last year, a day late in a statement filed on Friday (10 August) with the Securities and Exchange Commission (SEC), explaining that it missed the 9 August filing deadline because it needed additional time to complete the statement due to the complexity of reporting requirements during bankruptcy proceedings. Sales slipped slightly in the quarter to US$2.29 billion, against US$2.3 billion in the same period last year. The company is expected to file its reorganisation plan by early September.Significance: Dana recently completed its crucial contract negotiations with the United Auto Workers (UAW) and United Steelworkers (USW) unions, as well as its controversial equity plan with Centerbridge Capital Partners to support its exit from bankruptcy protection. Some areas of the deal are still to be confirmed due to a law suit filed by Appaloosa Management and other unsecured creditors of Dana. The company has thus far sold its trailer axle business, an engine hard parts business, an equity interest in a joint venture, and most of its fluid products business this year.
Source: Global Insight Daily Analysis
Source: Factiva
