MAUMEE, Ohio, July 29 /PRNewswire-FirstCall/ --

• Delivered positive net income of $9 million
• Achieved adjusted EBITDA of $154 million on revenues of $1.5 billion with adjusted EBITDA margin of 10.1 percent
• Attained significant margin improvement with substantial increases in all business segments
• Generated free cash flow of $137 million, marking fifth consecutive positive quarter
• Increased net cash position to $120 million
• Raised positive free cash flow guidance to more than $100 million in 2010

Dana Holding Corporation (NYSE: DAN) today announced its second-quarter 2010 results.

The company reported quarterly net income of $9 million, compared to break-even net income one year ago. Second-quarter adjusted EBITDA was $154 million, a substantial improvement over the $94 million reported for the same period in 2009, and adjusted EBITDA margin for the quarter improved to 10.1 percent, compared with 7.9 percent one year ago. Sales for the period were $1,526 million, up from $1,190 million for the second quarter last year.

Dana generated free cash flow of $137 million during the second quarter, which compares to $73 million one year ago. This marked the fifth consecutive quarter in which the company achieved positive free cash flow. The company increased its related guidance, indicating that it expects to achieve positive free cash flow of more than $100 million in 2010.

During the second quarter, total cash improved by $33 million from the prior quarter to $1,059 million. Since the end of 2009, total debt has been reduced by $64 million to $939 million at June 30, 2010. The company's net cash position of $120 million at the end of the quarter is an improvement of $176 million from December 31, 2009. Total liquidity improved by $215 million from the end of 2009 to $1,343 million at June 30.

"I am particularly pleased with our progress during the past quarter, as evidenced by the swing to positive net income and achieving positive free cash flow for a fifth consecutive quarter," said Dana President and Chief Executive Officer Jim Sweetnam. "Combined with substantial operating profit improvements and the effects of our continued restructuring efforts, the increase in revenues this quarter enabled us to make further progress in reinforcing our strong cash position.

"Overall, our second-quarter results underscore the consistent improvements that are positioning Dana for profitable growth moving forward," he added.

Six-Month Results

Adjusted EBITDA for the six months ended June 30, 2010, was $262 million, up significantly from $110 million during the period last year. Sales for the first half of 2010 were $3,034 million, which compares with $2,406 million during the same period one year ago. Dana narrowed its first-half 2010 net loss to $22 million, compared with a net loss of $157 million in 2009.

Dana to Host Second-Quarter Conference Call at 11 a.m. Today

Dana will discuss its second-quarter results in a conference call at 11 a.m. EDT today. Participants may listen to the audio portion of the conference call either through audio streaming online or by telephone. Slide viewing is only available online via a link provided on the Dana Investor Web site. To dial into the conference call, domestic locations should call 1-888-311-4590 (Conference I.D. # 85640285). International locations should call 1-706-758-0054 (Conference I.D. # 85640285). Please ask for the Dana Holding Corporation Financial Webcast and Conference Call. Phone registration will be available beginning at 10:30 a.m. EDT. An audio recording of the call will be available after 5 p.m. To access this recording, please dial 1-800-642-1687 (U.S. or Canada) or 1-706-645-9291 (international) and enter Conference I.D. # 85640285. A webcast replay will also be available after 5 p.m. today, and may be accessed via the Dana Investor Web site.

Non-GAAP Measures

This release refers to adjusted EBITDA, which we've defined to be earnings before interest, taxes, depreciation, amortization, non-cash equity grant expense, restructuring expense, and other nonrecurring items (gain/loss on debt extinguishment or divestitures, impairment, etc). Adjusted EBITDA is a non-GAAP financial measure, and the measure currently being used by Dana as the primary measure of its operating segment performance. The most significant impact to Dana's ongoing results of operations as a result of applying fresh start accounting following our emergence from bankruptcy was higher depreciation and amortization.

By using adjusted EBITDA, which is a performance measure that excludes depreciation and amortization, the comparability of results was enhanced. Management also believes that adjusted EBITDA is an important measure since the financial covenants of our primary debt agreements are adjusted EBITDA-based, and our management incentive performance programs are based, in part, on adjusted EBITDA. Because it is a non-GAAP measure, adjusted EBITDA should not be considered a substitute for net income (loss) or other reported results prepared in accordance with GAAP. The financial information accompanying this release provides a reconciliation of adjusted EBITDA for the periods presented to the reported income (loss) before income taxes, which is a GAAP measure.

Forward-Looking Statements

Certain statements and projections contained in this news release are, by their nature, forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

Dana's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss important risk factors that could affect our business, results of operations and financial condition. The forward-looking statements in this news release speak only as of this date. Dana does not undertake any obligation to revise or update publicly any forward-looking statement for any reason.

About Dana Holding Corporation

Dana is a world leader in the supply of driveline products (axles and driveshafts), power technologies (sealing and thermal-management products), and genuine service parts for light and heavy manufacturers. The company's customer base includes virtually every major vehicle manufacturer in the global automotive, commercial vehicle, and off-highway markets. Based in Maumee, Ohio, the company employs approximately 22,000 people in 26 countries and reported 2009 sales of $5.2 billion. For more information, please visit: www.dana.com.

    DANA HOLDING CORPORATION
    Consolidated Statement of Operations
     (Unaudited)
    For the Three Months Ended June 30,
     2010 and 2009
    -----------------------------------

                                                   Three Months
                                                       Ended
    (In millions except per share amount)            June 30,
                                                     --------
                                                2010          2009
                                                ----          ----
     Net sales                                $1,526        $1,190
     Costs and expenses
         Cost of sales                         1,357         1,123
         Selling, general and administrative
          expenses                                91            64
         Amortization of intangibles              16            18
         Restructuring charges, net               31            29
         Impairment of long-lived assets                         6
         Other income, net                        12            61
                                                 ---           ---
     Income before interest, reorganization
         items and income taxes                   43            11
     Interest expense                             20            37
     Reorganization items                                       (3)
                                                               ---
     Income (loss) before income taxes            23           (23)
     Income tax benefit (expense)                (17)           21
     Equity in earnings of affiliates              4            (1)
                                                 ---           ---
     Net income (loss)                            10            (3)
         Less: Noncontrolling interests net
          income (loss)                            1            (3)
                                                 ---           ---
     Net income attributable to the parent
      company                                      9             -
     Preferred stock dividend requirements         8             8
                                                 ---           ---
     Net income (loss) available to common
      stockholders                                $1           $(8)
                                                 ===           ===

     Net income (loss) per share available
      to
         parent company stockholders:
        Basic                                     $-        $(0.08)
        Diluted                                   $-        $(0.08)
     Average common shares outstanding
        Basic                                    140           100
        Diluted                                  146           100

    DANA HOLDING CORPORATION
    Consolidated Statement of
     Operations (Unaudited)
    For the Six Months Ended June 30,
     2010 and 2009
    ---------------------------------

                                               Six Months
                                                  Ended
    (In millions except per share
     amount)                                        June 30,
                                                   --------
                                                2010         2009
                                                ----         ----
     Net sales                                $3,034       $2,406
     Costs and expenses
         Cost of sales                         2,725        2,351
         Selling, general and
          administrative expenses                193          144
         Amortization of intangibles              31           35
         Restructuring charges, net               50           79
         Impairment of long-lived assets                        6
         Other income (expense), net              (1)          90
                                                 ---          ---
     Income (loss) before interest,
      reorganization
         items and income taxes                   34         (119)
     Interest expense                             46           72
     Reorganization items                                      (2)
                                                              ---
     Loss before income taxes                    (12)        (189)
     Income tax benefit (expense)                (14)          30
     Equity in earnings of affiliates              6           (4)
                                                 ---          ---
     Net loss                                    (20)        (163)
         Less: Noncontrolling interests net
          income (loss)                            2           (6)
                                                 ---          ---
     Net loss attributable to the
      parent company                             (22)        (157)
     Preferred stock dividend
      requirements                                16           16
                                                 ---          ---
     Net loss available to common
      stockholders                              $(38)       $(173)
                                                ====        =====

     Net loss per share available to
         parent company stockholders:
        Basic                                 $(0.28)      $(1.72)
        Diluted                               $(0.28)      $(1.72)
     Average common shares outstanding
        Basic                                    140          100
        Diluted                                  140          100

    DANA HOLDING CORPORATION
    Consolidated Balance Sheet (Unaudited)
    As of June 30, 2010 and December 31, 2009
    -----------------------------------------

    (In millions except share and per share amounts)
                                                         June    December
                                                          30,       31,
     Assets                                                2010      2009
                                                           ----      ----
     Current assets
     Cash and cash equivalents                           $1,059      $947
     Accounts receivable
       Trade, less allowance for doubtful accounts
       of $11 in 2010 and $18 in 2009                       860       728
       Other                                                186       141
     Inventories
       Raw materials                                        284       300
       Work in process and finished goods                   331       308
     Other current assets                                    94        59
     Current assets held for sale                             7        99
                                                            ---       ---
         Total current assets                             2,821     2,582
     Goodwill                                                95       111
     Intangibles                                            378       438
     Investments and other assets                           229       233
     Investments in affiliates                              114       112
     Property, plant and equipment, net                   1,315     1,484
     Noncurrent assets held for sale                          2       104
                                                            ---       ---
         Total assets                                    $4,954    $5,064
                                                         ======    ======

     Liabilities and equity
     Current liabilities
     Notes payable, including current portion of
      long-term debt                                        $48       $34
     Accounts payable                                       767       601
     Accrued payroll and employee benefits                  120       103
     Accrued restructuring costs                             39        29
     Taxes on income                                         29        40
     Other accrued liabilities                              288       270
     Current liabilities held for sale                        3        79
                                                            ---       ---
         Total current liabilities                        1,294     1,156
     Long-term debt                                         891       969
     Deferred employee benefits and other noncurrent
      liabilities                                         1,100     1,160
     Commitments and contingencies

         Total liabilities                                3,285     3,285
     Parent company stockholders' equity
       Preferred stock, 50,000,000 shares authorized
         Series A, $0.01 par value, 2,500,000 issued and
          outstanding                                       242       242
         Series B, $0.01 par value, 5,400,000 issued and
          outstanding                                       529       529
       Common stock, $.01 par value, 450,000,000 shares
        authorized,
         140,441,226 issued and outstanding                   1         1
       Additional paid-in capital                         2,588     2,580
       Accumulated deficit                               (1,207)   (1,169)
       Treasury stock, at cost                               (1)
       Accumulated other comprehensive loss                (581)     (504)
                                                           ----      ----
         Total parent company stockholders' equity        1,571     1,679
     Noncontrolling interests                                98       100
                                                            ---       ---
         Total equity                                     1,669     1,779
                                                          -----     -----
         Total liabilities and equity                    $4,954    $5,064
                                                         ======    ======

    DANA HOLDING CORPORATION
    Consolidated Statement of Cash Flows
     (Unaudited)
    For the Three Months Ended June 30, 2010 and
     2009
    --------------------------------------------

                                                       Three Months
                                                          Ended
    (In millions)                                       June 30,
                                                        --------
                                                     2010      2009
                                                     ----      ----
     Cash flows - operating activities
     Net income (loss)                                $10       $(3)
     Depreciation                                      61        79
     Amortization of intangibles                       19        21
     Amortization of deferred financing charges
      and original issue discount                       5        11
     Reorganization-related tax claim payment (1)     (75)
     Gain on extinguishment of debt                            (40)
     Deferred income taxes                              5      (13)
     Pension expense in excess of (less than)
      contributions                                     4        (4)
     Change in working capital                         54        77
     Other, net                                        (6)     (31)
                                                      ---       ---
     Net cash flows provided by operating
      activities (1)                                   77        97

     Cash flows - investing activities
     Purchases of property, plant and equipment
      (1)                                             (15)     (24)
     Other                                              4         2
                                                      ---       ---
     Net cash flows used in investing activities      (11)     (22)

     Cash flows - financing activities
     Net change in short-term debt                      4      (11)
     Proceeds from long-term debt                                 3
     Repayment of long-term debt                      (10)     (79)
     Dividends paid to preferred stockholders         (16)
     Dividends paid to noncontrolling interests        (4)
     Other                                              5        (5)
     Net cash flows used in financing activities      (21)     (92)
                                                      ---       ---

     Net increase (decrease) in cash and cash
      equivalents                                      45      (17)
     Cash and cash equivalents - beginning of
      period                                        1,026       549
     Effect of exchange rate changes on cash
      balances                                        (12)       21
     Cash and cash equivalents - end of period     $1,059      $553
                                                   ======      ====

    (1)   Free cash flow of $137 in 2010 and $73 in 2009 is the sum of
    net cash provided by
    operating activities (exclusive of reorganization-related claims
    payments) reduced by the
    purchases of property, plant and equipment.

    DANA HOLDING CORPORATION
    Consolidated Statement of Cash Flows (Unaudited)
    For the Six Months Ended June 30, 2010 and 2009
    -----------------------------------------------

                                                            Six Months
                                                               Ended
    (In millions)                                            June 30,
                                                             --------
                                                         2010        2009
                                                         ----        ----
     Cash flows - operating activities
     Net loss                                            $(20)      $(163)
     Depreciation                                         123         152
     Amortization of intangibles                           38          42
     Amortization of deferred financing charges and
      original issue discount                              13          18
     Reorganization-related tax claim payment (1)         (75)
     Loss on sale of business                               5
     Loss (gain) on extinguishment of debt                  4         (40)
     Deferred income taxes                                 (6)        (26)
     Pension expense in excess of (less than)
      contributions                                         9          (5)
     Change in working capital                             33         (35)
     Other, net                                            (2)        (20)
     Net cash flows provided by (used in) operating
      activities (1)                                      122         (77)

     Cash flows - investing activities
     Purchases of property, plant and equipment (1)       (26)        (54)
     Proceeds from sale of businesses                     113
     Other                                                  5           2
     Net cash flows provided by (used in) investing
      activities                                           92         (52)

     Cash flows - financing activities
     Net change in short-term debt                         13         (35)
     Advance received on corporate facility sale                       11
     Proceeds from long-term debt                           1           3
     Repayment of long-term debt                          (88)        (82)
     Dividends paid to preferred stockholders             (16)
     Dividends paid to noncontrolling interests            (5)
     Other                                                  4          (3)
     Net cash flows used in financing activities          (91)       (106)
                                                          ---        ----

     Net increase (decrease) in cash and cash
      equivalents                                         123        (235)
     Cash and cash equivalents - beginning of period      947         777
     Effect of exchange rate changes on cash balances     (11)         11
     Cash and cash equivalents - end of period         $1,059        $553
                                                       ======        ====

    (1)   Free cash flow of $171 in 2010 and ($131) in 2009 is the sum of
    net cash provided by (used in)
    operating activities (exclusive of reorganization-related claims
    payments) reduced by the purchases of
    property, plant and equipment.

    DANA HOLDING CORPORATION
    Segment Sales and Adjusted EBITDA
     (Unaudited)
    For the Three Months Ended June
     30, 2010 and 2009
    -------------------------------



                                        Three Months
    (In millions)                          Ended
                                       June 30,
                                       --------
    SALES                            2010        2009
                                     ----        ----
      Light Vehicle Driveline        $650        $444
      Power Technologies              234         161
      Commercial Vehicle              335         262
      Off-Highway                     287         194
      Structures                       18         129
      Other                             2
      Total Sales                  $1,526      $1,190
                                   ======      ======

    Adjusted EBITDA
      Light Vehicle Driveline         $66         $39
      Power Technologies               35           1
      Commercial Vehicle               37          23
      Off-Highway                      25           5
      Structures                       (3)
    Segment EBITDA                    160          68
      Shared services and
       administrative                  (4)         (5)
      Other income (expense), net      (3)         33
      Foreign exchange not in
       segments                         1          (2)
    Adjusted EBITDA                  $154         $94
                                     ====         ===

    DANA HOLDING CORPORATION
    Segment Sales and Adjusted EBITDA
     (Unaudited)
    For the Six Months Ended June 30,
     2010 and 2009
    ---------------------------------



                                         Six Months
    (In millions)                          Ended
                                       June 30,
                                       --------
    SALES                            2010        2009
                                     ----        ----
      Light Vehicle Driveline      $1,227        $861
      Power Technologies              462         317
      Commercial Vehicle              637         526
      Off-Highway                     544         456
      Structures                      162         246
      Other                             2
      Total Sales                  $3,034      $2,406
                                   ======      ======

    Adjusted EBITDA
      Light Vehicle Driveline        $110         $31
      Power Technologies               62
      Commercial Vehicle               59          29
      Off-Highway                      46          16
      Structures                        8           9
    Segment EBITDA                    285          85
      Shared services and
       administrative                  (9)        (10)
      Other income (expense), net      (9)         32
      Foreign exchange not in
       segments                        (5)          3
    Adjusted EBITDA                  $262        $110
                                     ====        ====

    DANA HOLDING CORPORATION
    Reconciliation of Segment and Adjusted
     EBITDA to
    Income (Loss) Before Income Taxes
     (Unaudited)
    For the Three Months Ended June 30, 2010
     and 2009
    ----------------------------------------

                                                      Three Months
                                                         Ended
    (In millions)                                    June 30,
                                                     --------
                                                   2010       2009
                                                   ----       ----
    Segment EBITDA                                 $160        $68
      Shared services and administrative             (4)        (5)
      Other income (expense), net                    (3)        33
      Foreign exchange not in segments                1         (2)
    Adjusted EBITDA                                 154         94
      Depreciation                                  (61)       (79)
      Amortization                                  (19)       (21)
      Restructuring                                 (31)       (29)
      Impairment                                                (6)
      Reorganization items, net                                  3
      Gain on extinguishment of debt                            40
      Strategic transaction expenses                            (2)
      Loss on sale of assets, net                    (1)
      Stock compensation expense                     (3)        (2)
      Foreign exchange on intercompany loans,
       Venezuelan currency
        devaluation and market value adjustments
         on forwards                                 (3)        10
      Interest expense                              (20)       (37)
      Interest income                                 7          6
     Income (loss) before income taxes              $23       $(23)
                                                    ===       ====

    DANA HOLDING CORPORATION
    Reconciliation of Segment and Adjusted
     EBITDA to
    Loss Before Income Taxes (Unaudited)
    For the Six Months Ended June 30, 2010
     and 2009
    --------------------------------------

                                                  Six Months
                                                     Ended
    (In millions)                                  June 30,
                                                   --------
                                                2010        2009
                                                ----        ----
    Segment EBITDA                              $285         $85
      Shared services and administrative          (9)        (10)
      Other income (expense), net                 (9)         32
      Foreign exchange not in segments            (5)          3
    Adjusted EBITDA                              262         110
      Depreciation                              (123)       (152)
      Amortization                               (38)        (42)
      Restructuring                              (50)        (79)
      Impairment                                              (6)
      Reorganization items, net                                2
      Gain (loss) on extinguishment of debt       (4)         40
      Strategic transaction expenses                          (2)
      Loss on sale of businesses and assets,
       net                                        (6)         (1)
      Stock compensation expense                  (5)         (4)
      Foreign exchange on intercompany
       loans, Venezuelan currency
        devaluation and market value
         adjustments on forwards                 (15)          5
      Interest expense                           (46)        (72)
      Interest income                             13          12
      Loss before income taxes                  $(12)      $(189)
                                                ====       =====

SOURCE Dana Holding Corporation