Dana Holding Narrows 4Q Loss, Boosts 2011 Forecast

  DOW JONES NEWSWIRES 
 

Dana Holding Corp. (DAN) narrowed its fourth-quarter loss after the auto-parts maker controlled costs and boosted sales in all but one of its main business segments.

The company also boosted its profit forecast for the year by 20 cents, to between $1.50 and $1.60 a share and said it expects sales to rise at least 17%, compared with its previous estimate of more than 10% growth.

The maker of axles, driveshafts and thermal-management products suffered along with the auto industry in 2009, but its sales improved last year as light-vehicle demand rebounded.

Last month, the company took advantage of its improving results and lower lending rates to issue about $700 million in eight- and 10-year notes, mostly eliminating secured debt from its capital structure.

The company posted a fourth-quarter loss of $14 million, or 16 cents a share, compared with a year-earlier loss of $236 million, or $2.02 a share. Net sales rose 4.4% to $1.56 billion.

Analysts surveyed by Thomson Reuters expected a per-share profit of 18 cents on revenue of $1.5 billion.

Gross margin widened to 11% from 7.1% as sales costs held steady.

The company's light-vehicle driveline segment, its largest by revenue, boosted sales 13%. The power technologies unit saw revenue rise 9%, while off-highway sales surged 51% and commercial-vehicle revenue rose 14%. Structures revenue dropped 93%.

Dana's shares closed at $17.69 and were inactive premarket. The stock is up 20% in the past three months.

-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; [e-mail];