Supplier Dana Holding Corp., facing more red ink and sales declines, said today that it would cut its global work force this year by more than 5,800 people, up from 5,000 announced last November.
Dana, which emerged from two years of bankruptcy protection on Feb. 1, announced the job cuts after disclosing a net loss of $264 million during the fourth quarter, compared with a loss of $257 million during the same period in 2007.
Like most U.S. auto suppliers, Dana is reeling from a continued slide in new-vehicle production in North America and Europe. Unfavorable currency exchange rates also fed the fourth-quarter loss.
Danas sales fell 30 percent to $1.52 billion from $2.16 billion in the year-ago quarter.
In a conference call with analysts today, Dana presented a slide disclosing the planned job cuts. A reduction of 5,800 represents a 35 percent work force cutback since 2007, the company reported.
For all of 2008, Dana said it posted a net loss of $11 million on total revenue of $8.09 billion, compared with a net loss of $511 million on revenue of $8.72 billion in 2007. But the 2008 results include a one-time fresh start accounting gain of $1.01 billion.
Dana closed four plants last year, and as many as 10 closings are planned through 2010. The company plans to combine its light-axle and driveshaft businesses into a single global driveline business.
Dana, of Toledo, Ohio, ranks No. 19 on the Automotive News list of the top 100 global suppliers, with sales to automakers of $8.72 billion in fiscal 2007.