Goldman Sachs Comments On Dana Holdings Following Recent Earnings Report; Raises Estimates

After 4Q10 results, Goldman Sachs is raising its 2011 adjusted EBITDA estimate on Dana Holding Corp. DAN modestly to $760 mn from $750, previously. Goldman's 2012 and 2013 estimates remain unchanged at $935 mn and $1,062 mn. Adjusted EBITDA includes equity income and excludes stock comp expense as presented by the company. The modest changes reflect the impact of the SIFCO transaction and an improved outlook for agriculture and construction equipment volumes, which are partially offset by a lower incremental margin in NA commercial trucks, which Goldman believes is being dampened by a fairly fragmented supply chain. Goldman thinks DAN's 2011 guidance looks very achievable on the revenue side in the face of a large volume tailwind, a roughly $350 mn contribution from SIFCO, and $198 mn in net new business. Goldman also sees some upside to Dana's 10% margin forecast with increased utilization and benefits from structural cost actions likely to more than offset some modest fixed cost creep and the still low variable margins in NA commercial trucks. Goldman Sachs has a $23 PT and Buy raing on DAN DAN is trading higher at $17.95