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Dana seeks to maintain balance sheet strength, see profitable growth
By Jennifer Lanning Drey
Portland, Ore., March 1 - Dana Holding Corp. plans to maintain a strong balance sheet while shifting its focus toward profitable growth going forward, Jim Yost, chief financial officer of Dana, said during a Monday presentation at the JPMorgan Global High Yield and Leveraged Finance Conference in Miami.
"We think it's very important for our customers, as well as our suppliers, that we maintain a very strong balance sheet, and we will continue to do that going forward by doing whatever is necessary to maintain very strong liquidity and a very strong balance sheet," he said.
At the same time, Dana is preparing for profitable growth in all regions, particularly in Asia, as it continues to improve operations, he said.
While Dana has not identified a specific leverage target, Yost said the company would like to be a strong BB credit "in the not too distant future."
The company ended 2009 with nearly $1 billion in cash.
Upcoming uses of liquidity include a $75 million to $80 million payment to be paid to the IRS related to past tax issues. The company expects to make the payment in the second quarter.
Yost also mentioned cash dividends as a potential use of cash.
Additionally, he said Dana is considering increasing its ownership in a joint venture with Dongfeng Motor in China.
The company has no plans for major acquisitions, but there could be opportunities to invest in a few technologies and small operations, he said.
Dana reduced net debt to $56 million from $418 million in 2009.
Dana is a Toledo, Ohio-based supplier of components, modules and systems to vehicle manufacturers and related aftermarkets.
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