Dana Breaks Even In 2Q On Lower Costs; Revenue Halved

   DOW JONES NEWSWIRES 
 

Dana Holding Corp. (DAN) broke even in the second quarter after four straight quarters of losses on lower costs as revenue continued to tumble.

The auto-parts supplier forecast also said it cut another 1,400 workers during the quarter, bringing its year-to-date job cuts to about 6,200.

"Our second-quarter revenues reflected the continued weak demand in all three of our market segments," said Chairman John Devine.

The maker of axles, driveshafts and thermal-management products has suffered along with the auto industry from a sharp drop in sales for more than a year. Dana has slashed thousands of jobs and closed plants since it exited from bankruptcy protection in February 2008. But the company stands to benefit from improving results at Ford Motor Co. (F), its biggest customer.

For the latest quarter, Dana reported break-even results, compared with a year-earlier loss of $122 million. On a per-share basis, which includes preferred-stock dividend, Dana's loss narrowed to 8 cents from $1.27. The prior year included a $75 million write-down.

Revenue dropped 49% to $1.19 billion, helping lower gross margin to 5.2% from 6.2%.

Dana's shares closed Wednesday at $4.67 and were inactive premarket. The stock has soared from an all-time low of 19 cents in March on bankruptcy concerns, but is still down a third since last September.

-By Kathy Shwiff and Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; [e-mail]