MAUMEE, Ohio — Dana Holding Corp. has announced its full year and fourth quarter 2009 results.

The company said operating improvements of more than $500 million from margin improvements, cost reductions and other factors largely offset lower profits resulting from a 35-percent decline in full-year sales, which was due to substantially lower industry production volumes in 2009. As a result, adjusted EBITDA was $326 million, down just $23 million compared to 2008. Full-year 2009 sales were $5,228 million, down $2,867 million from the prior year.

In 2009, Dana narrowed its net loss by $291 million compared to the prior year, after excluding a one-time gain of $754 million in 2008 recognized in connection with the application of fresh start accounting. The company reported a net loss of $431 million in 2009, which included fourth-quarter after-tax charges of $153 million related to the planned divestiture of its Structural Products business to Metalsa, S.A. de C.V.

At Dec. 31, 2009, Dana had increased its cash position by $170 million to $947 million; improved total liquidity by $215 million to $1,094 million; reduced total debt by $248 million to $1,003 million; and reduced net debt by $418 million to $56 million, all compared to respective 2008 year-end totals.

“In spite of a substantial downturn in our markets, the Dana team delivered solid cash generation and vital cost reductions and margin improvements,” said Dana President and Chief Executive Officer Jim Sweetnam. “These achievements helped dampen the negative impacts of the broader marketplace and provide a solid base for improvement in 2010.

“Our team is managing aggressively through a difficult period and delivering on our commitments,” he added. “Much more work lies ahead, but as we begin to see modest increases in vehicle production across our segments and regions, we also see opportunities to take advantage of our improving competitive position and renewed focus on product development.”

Sales for the fourth quarter of 2009 were $1,493 million, which compares with $1,521 million for the same period in 2008. In the fourth quarter of 2009, the company narrowed its net loss to $236 million, compared with a net loss of $249 million for the same period in 2008, despite the inclusion of the net charges of $153 million associated with the anticipated sale of the Structures business.