Dana considering capital structure, says liquidity 'more than enough'

By Jennifer Lanning Drey

Portland, Ore., Sept. 8 - Dana Holding Corp. has "more than enough" liquidity but continues to look at its capital structure, James Yost, Dana's chief financial officer, said Wednesday during a presentation at the Credit Suisse Automotive & Transportation Conference in New York.

The company has $1.3 billion of liquidity and a net cash position of $120 million.

"Unfortunately, most of that liquidity is in cash. We'd like it to be more in some type of revolving credit," Yost said.

Dana doesn't need as much funding as the company improves its global cash pooling capabilities, he said.

The CFO later said that acquisitions could provide a potential opportunity for Dana to use some of its cash. The company is looking at some smaller potential acquisitions that would enhance its portfolio, he said.

Dana will not be going on any "M&A binges," he added.

The company has had five consecutive quarters of being free cash flow positive and intends to keep the trend going, Yost said.

Dana expects its free cash flow to exceed $100 million for full-year 2010.

Yost also said Dana remains on track to deliver its 2010 growth plans, which should improve the profitability of the business as it eliminates less-profitable areas.

"We're on track for our plans and expect to have an even better year next year," he said.

Dana is a Toledo, Ohio-based supplier of components, modules and systems to vehicle manufacturers and related aftermarkets.

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