The price of Dana Corp.'s bank debt and bonds fell after the company posted a $1.274 billion net loss in the third quarter of 2005. Dana's revolving credit fell five points to 95, while its 6.5% '09 bonds fell 10 points to 71.80.
Dana blamed the majority of the net loss on the provision of a valuation allowance against its net U.S. deferred tax assets in the third quarter, according to a company release. This led to a $918 million net loss in the period. The auto supplier also took a $275 million impairment charge related to the divestment of its non-core engine parts, fluid products and pump products businesses. It also cited high steel costs and costs associated with the restructuring of its manufacturing facilities for the loss. A Dana spokesman did not return calls by press time.