MAUMEE, Ohio -- Dana Holding Corp. has announced its full-year and fourth-quarter 2010 results. All full-year financial targets were achieved or exceeded, the company said.

Dana reported sales of $6.1 billion – up 17 percent over 2009 – and continued operating improvements enabled the company to post net income of $10 million for 2010, compared to a $431 million loss the prior year.

Continued restructuring and cost-reduction actions contributed to a $124 million reduction in conversion costs in 2010 and a significant improvement in margins, the company said. Adjusted EBITDA margin reached the full-year target of 9 percent, compared to 6 percent in 2009.

The company generated full-year 2010 free cash flow of $242 million, compared to $109 million for the prior year. At Dec. 31, 2010, Dana’s global liquidity stood at approximately $1.4 billion, and its net cash position of $187 million was significantly improved from a net debt position of $56 million at the end of 2009.

“Dana met or exceeded its 2010 targets including operational improvements, profitable growth and improved margins – with a continued focus on our strong balance sheet,” said Dana Executive Chairman and Interim CEO John Devine. “The entire Dana team worked together to deliver on our commitments. More remains to be done, but we have a strong foundation to keep improving top- and bottom-line results in 2011 and beyond.”

The company says it secured $846 million in net new business in 2010, at margins above its cost of capital, against its goal of $650 million to $700 million. Business wins were achieved – and are expected to continue – in all markets (automotive, commercial vehicle and off-highway) and geographic regions.  

Fourth-quarter 2010 sales were $1.6 billion, up $100 million from the same period in 2009. A net loss of $14 million in the fourth quarter is improved from a net loss of $236 million a year ago.  

Dana also noted that it strengthened its capital structure last month by extending the maturities and reducing the amount of its long-term debt, and also strengthened its flexibility in pursuing its growth strategies by eliminating certain loan covenants.

Earlier this month, Dana signed an agreement to increase ownership of its joint venture, Dongfeng Dana Axle Co., Ltd. (DDAC), to 50 percent, pending Chinese government approval. DDAC is the sole supplier of medium- and heavy-duty axles to China’s second largest commercial vehicle manufacturer and exports to several other markets. Dana also recently completed a strategic agreement with SIFCO S.A., which positions Dana as the leading full-line supplier of commercial vehicle drivelines in South America and is expected to add approximately $350 million in annual sales. Collectively, cash outlays for these investments in China and Brazil are expected to total approximately $270 million.

In addition, Dana says it has put in place a robust plan to grow its global aftermarket business. The company expects to expand its aftermarket business from 15 percent of sales in 2010 to a target of 20 percent with new products and by leveraging its brands to enter new market segments.