TOLEDO, Ohio -- Dana Holding Corp. said it achieved break-even net income in the second quarter of 2009, compared to a loss of $122 million during the same period last year.

Earnings before interest, taxes, depreciation, amortization, and restructuring (EBITDA) was $94 million, compared with $164 million in 2008. Second quarter sales were $1.19 billion, a 49-percent decrease compared with sales of $2.3 billion during the same period last year. The company said the decrease was driven by lower vehicle production across all market segments, most notably within the off-highway sector.

At June 30, cash balances remained solid at $553 million, with total available liquidity of $664 million. Net debt was $546 million.

"Our second-quarter revenues reflected the continued weak demand in all three of our market segments," said Dana Executive Chairman John Devine. "Despite this difficult environment, our aggressive efforts to resize our organization, implement permanent structural improvements, and address pricing continued to take hold. These actions resulted in substantial profit and cash flow improvements compared to the prior quarter, despite slightly lower sales."

During the quarter, Dana reduced its global workforce by approximately 1,400 employees, bringing its total year-to-date reduction to approximately 6,200. The workforce reductions include both actions to align the organization to reduced volume levels, as well as permanent, structural reductions to improve productivity and profitability.

The company achieved a first-half pricing improvement of $131 million, which includes the recovery of material cost increases. Other actions - primarily cost reductions - improved first-half EBITDA by $113 million.

Dana generated positive free cash flow of $73 million for the second quarter, which was impacted considerably by improvements in working capital totaling $91 million. The majority of the cash generated was utilized to reduce debt levels. During the quarter, the company reduced debt by $129 million, or 10 percent. The debt reduction was achieved primarily through market purchases made at a discount to par.

"The positive cash flow generated in the second quarter enabled us to reduce debt levels and interest expense at an attractive price, and strengthened our debt position moving forward," said Chief Financial Officer Jim Yost. "Even without the benefit of the debt repurchase, we would have achieved our debt covenants."