Key Highlights
- Sales of $2.7 billion, an
increase of $134 million or 5 percent
over last year
- Net income attributable to Dana of $19 million, an increase of $107 million over last year
- Diluted EPS of $0.13; diluted
adjusted EPS of $0.30, an increase of
$0.06 per share over last
year
- Adjusted EBITDA of $242
million, an increase of $50
million or 26 percent over last year
- Adjusted EBITDA margin of 9.1 percent, a 150 basis points
improvement compared with last year
MAUMEE, Ohio, Oct. 27, 2023 /PRNewswire/ -- Dana Incorporated
(NYSE: DAN) today announced financial results for the third quarter
of 2023.
"Dana had strong sales of $2.7
billion, and we improved our margin by 150 basis points in
the third quarter despite the impact of the UAW strike on two of
our key customers in our North American Light Vehicle business late
in the quarter. The Dana team continues to execute well across our
operations as customer recoveries and more consistent build
patterns have helped to offset inflation pressure, said
James Kamsickas, Dana chairman and
chief executive officer.
"The business continues to strengthen due to our broad global
customer base and cross-mobility market balance as we successfully
execute numerous new-program launches and win new business."
Third-quarter 2023 Financial Results
Sales for the
third quarter of 2023 totaled $2.67
billion, compared with $2.54
billion in the same period of 2022, representing a
$134 million increase driven by
higher market demand, cost-recovery actions, and conversion of our
sales backlog partially offset by the lower demand due to the UAW
strike at two of our key customers.
Adjusted EBITDA for the third quarter of 2023 was
$242 million, compared with $192 million for the same
period in 2022. The 150 basis points of margin
improvement in the third quarter of 2023 was primarily driven by
higher sales volume and beneficial mix, net customer pricing and
recovery actions, improved customer order patterns driving higher
manufacturing efficiency, and lower net commodity costs.
These improvements were partially offset by continued
inflationary cost pressures.
Net income attributable to Dana was $19
million, or $0.13 per share,
compared with a net loss of $88
million, or $0.61 per share,
in the third quarter of 2022. Last year's third-quarter loss
was driven by a $191 million non-cash
goodwill impairment charge.
Adjusted net income attributable to Dana was $43 million,
and diluted adjusted earnings per share were $0.30 for the third quarter of 2023, compared
with adjusted net income of $34 million and $0.24 per share in 2022.
Cash flow from operations in the third quarter of 2023 was
$112 million, compared with $171 million in the same
period of 2022. Free cash flow was a use of $5 million,
compared with free cash flow of $77
million in the third quarter of 2022. The use of cash
in this year's third quarter was driven by higher working capital
requirements related to program launches and higher capital
spending for new business backlog.
Dana Provides Update on Outlook
"The UAW strike
is significantly impacting a number of our operations in
North America while our
heavy-vehicle business and operations in the rest of the world are
largely unaffected," said Timothy
Kraus, Dana's senior vice president and chief financial
officer.
"Dana remains fundamentally strong due to the strength of our
balance sheet and capital structure. If all the UAW strikes are
resolved by the end of October, Dana expects sales and profit to be
maintained at the midpoint of our previous guidance range. If
no resolution is reached by year's end at all our Detroit 3 customers, including Ford, we
anticipate our sales to be approximately $500 million lower."
Updated 2023 Financial Targets1, 2
- Sales of $10.7 billion
assuming UAW strike through Oct.
31; $10.2 billion with strike
through Dec. 31;
- Adjusted EBITDA of $850 million
with strike through Oct. 31;
$760 million with strike
through Dec. 31 for an implied adjusted EBITDA margin of
approximately 8 percent at the high end of the range;
- Diluted adjusted EPS of $0.80
with strike through Oct.31; $0.30
with strike through Dec. 31;
- Operating cash flow of approximately, $490 with strike through Oct. 31; $375 million with strike through
Dec. 31; and
- Free cash flow use of $20 million
with strike through Oct. 31;
$135 million use with strike
through Dec. 31.
1Net income and diluted EPS guidance are not
provided, as discussed below in Non-GAAP Financial Information.
Dana to Host Conference Call at 9 a.m. Friday, Oct. 27
Dana will discuss its
third-quarter results in a conference call at 9 a.m. EDT on Friday, Oct. 27. The
conference call can be accessed by telephone from both domestic and
international locations using the information provided below:
Conference ID: 9943139
Participant Toll-Free Dial-In Number: 1 (888) 440-5873
Participant Toll Dial-In Number: 1 (646) 960-0319
Audio streaming and slides will be available online via a link
provided on the Dana investor website:
www.dana.com/investors.
A webcast replay can be accessed via Dana's investor website
following the call.
Non-GAAP Financial Information
Adjusted EBITDA is a
non-GAAP financial measure which we have defined as net income
(loss) before interest, income taxes, depreciation, amortization,
equity grant expense, restructuring expense, non-service cost
components of pension and other postretirement benefit costs and
other adjustments not related to our core operations (gain/loss on
debt extinguishment, pension settlements, divestitures, impairment,
etc.). Adjusted EBITDA is a measure of our ability to maintain and
continue to invest in our operations and provide shareholder
returns. We use adjusted EBITDA in assessing the effectiveness of
our business strategies, evaluating and pricing potential
acquisitions and as a factor in making incentive compensation
decisions. In addition to its use by management, we also believe
adjusted EBITDA is a measure widely used by securities analysts,
investors and others to evaluate financial performance of our
company relative to other Tier 1 automotive suppliers. Adjusted
EBITDA should not be considered a substitute for earnings (loss)
before income taxes, net income (loss) or other results reported in
accordance with GAAP. Adjusted EBITDA may not be comparable to
similarly titled measures reported by other companies.
Adjusted net income (loss) attributable to the parent company is
a non-GAAP financial measure which we have defined as net income
(loss) attributable to the parent company, excluding any discrete
income tax items, restructuring charges, amortization expense and
other adjustments not related to our core operations (as used in
adjusted EBITDA), net of any associated income tax effects. This
measure is considered useful for purposes of providing investors,
analysts and other interested parties with an indicator of ongoing
financial performance that provides enhanced comparability to net
income attributable to the parent company reported by other
companies. Adjusted net income (loss) attributable to the parent
company is neither intended to represent nor be an alternative
measure to net income (loss) attributable to the parent company
reported in accordance with GAAP.
Diluted adjusted EPS is a non-GAAP financial measure which we
have defined as adjusted net income (loss) attributable to the
parent company divided by adjusted diluted shares. We define
adjusted diluted shares as diluted shares as determined in
accordance with GAAP based on adjusted net income (loss)
attributable to the parent company. This measure is
considered useful for purposes of providing investors, analysts and
other interested parties with an indicator of ongoing financial
performance that provides enhanced comparability to EPS reported by
other companies. Diluted adjusted EPS is neither intended to
represent nor be an alternative measure to diluted EPS reported in
accordance with GAAP.
Free cash flow is a non-GAAP financial measure which we have
defined as net cash provided by (used in) operating activities less
purchases of property, plant and equipment. We believe free
cash flow is useful to investors in evaluating the operational cash
flow of the company inclusive of the spending required to maintain
the operations. Free cash flow is not intended to represent
nor be an alternative to the measure of net cash provided by (used
in) operating activities reported in accordance with GAAP.
Free cash flow may not be comparable to similarly titled measures
reported by other companies.
The accompanying financial information provides reconciliations
of adjusted EBITDA, diluted adjusted EPS and free cash flow to the
most directly comparable financial measures calculated and
presented in accordance with GAAP. We have not provided a
reconciliation of our adjusted EBITDA and diluted adjusted EPS
outlook to the most comparable GAAP measures of net income (loss)
and diluted EPS. Providing net income (loss) and diluted EPS
guidance is potentially misleading and not practical given the
difficulty of projecting event driven transactional and other
non-core operating items that are included in net income (loss) and
diluted EPS, including restructuring actions, asset impairments and
certain income tax adjustments. The accompanying reconciliations of
these non-GAAP measures with the most comparable GAAP measures for
the historical periods presented are indicative of the
reconciliations that will be prepared upon completion of the
periods covered by the non-GAAP guidance.
Forward-Looking Statements
Certain statements and
projections contained in this news release are, by their nature,
forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking
statements are based on our current expectations, estimates, and
projections about our industry and business, management's beliefs,
and certain assumptions made by us, all of which are subject to
change. Forward-looking statements can often be identified by
words such as "anticipates," "expects," "intends," "plans,"
"predicts," "believes," "seeks," "estimates," "may," "will,"
"should," "would," "could," "potential," "continue," "ongoing," and
similar expressions, and variations or negatives of these
words. These forward-looking statements are not guarantees of
future results and are subject to risks, uncertainties, and
assumptions that could cause our actual results to differ
materially and adversely from those expressed in any
forward-looking statement.
Dana's Annual Report on Form 10-K, subsequent Quarterly Reports
on Form 10-Q, recent Current Reports on Form 8-K, and other
Securities and Exchange Commission filings discuss important risk
factors that could affect our business, results of operations and
financial condition. The forward-looking statements in this
news release speak only as of this date. Dana does not undertake
any obligation to revise or update publicly any forward-looking
statement for any reason.
About Dana Incorporated
Dana is a leader in the design
and manufacture of highly efficient propulsion and
energy-management solutions that power vehicles and machines in all
mobility markets across the globe. The company is shaping
sustainable progress through its conventional and clean-energy
solutions that support nearly every vehicle manufacturer with drive
and motion systems; electrodynamic technologies, including software
and controls; and thermal, sealing, and digital solutions.
Based in Maumee, Ohio, USA, the
company reported sales of $10.2
billion in 2022 with 42,000 people in 31 countries across
six continents. With a history dating to 1904, Dana was named
among the "World's Most Ethical Companies" for 2023 by Ethisphere
and as one of "America's Most Responsible Companies 2023" by
Newsweek. The company is driven by a high-performance culture
that focuses on valuing others, inspiring innovation, growing
responsibly, and winning together, earning it global recognition as
a top employer. Learn more at dana.com.
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Operations (Unaudited)
|
|
|
|
|
|
For the Three
Months Ended September 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In millions,
except per share amounts)
|
|
September
30,
|
|
|
|
2023
|
|
2022
|
Net
sales
|
|
|
$ 2,669
|
|
$ 2,535
|
Costs and
expenses
|
|
|
|
|
Cost of
sales
|
|
2,433
|
|
2,332
|
Selling, general and
administrative expenses
|
|
126
|
|
114
|
Amortization of
intangibles
|
|
3
|
|
3
|
Restructuring charges,
net
|
|
17
|
|
(1)
|
Impairment of
goodwill
|
|
|
|
(191)
|
Other income
(expense), net
|
|
1
|
|
3
|
Earnings (loss)
before interest and income taxes
|
|
91
|
|
(101)
|
Interest
income
|
|
5
|
|
2
|
Interest
expense
|
|
41
|
|
32
|
Earnings (loss)
before income taxes
|
|
55
|
|
(131)
|
Income tax
expense
|
|
33
|
|
31
|
Equity in
earnings (loss) of affiliates
|
|
3
|
|
(1)
|
Net income
(loss)
|
|
25
|
|
(163)
|
Less: Noncontrolling interests net income
|
|
8
|
|
4
|
Less: Redeemable
noncontrolling interests net loss
|
|
(2)
|
|
(79)
|
Net income
(loss) attributable to the parent company
|
|
$
19
|
|
$
(88)
|
|
|
|
|
|
|
Net income
(loss) per share available to common
stockholders
|
|
|
|
|
Basic
|
|
|
$
0.13
|
|
$
(0.61)
|
Diluted
|
|
|
$
0.13
|
|
$
(0.61)
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Basic
|
|
144.3
|
|
143.4
|
Weighted-average
shares outstanding - Diluted
|
|
144.7
|
|
143.4
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Operations (Unaudited)
|
|
|
|
|
|
For the Nine
Months Ended September 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
(In millions,
except per share amounts)
|
|
September
30,
|
|
|
|
2023
|
|
2022
|
Net
sales
|
|
|
$ 8,061
|
|
$ 7,601
|
Costs and
expenses
|
|
|
|
|
Cost of sales
|
|
7,325
|
|
7,018
|
Selling, general and
administrative expenses
|
|
410
|
|
374
|
Amortization of
intangibles
|
|
10
|
|
10
|
Restructuring charges,
net
|
|
21
|
|
(1)
|
Impairment of
goodwill
|
|
|
|
(191)
|
Other income
(expense), net
|
|
10
|
|
15
|
Earnings before
interest and income taxes
|
|
305
|
|
24
|
Loss on
extinguishment of debt
|
|
(1)
|
|
|
Interest
income
|
|
14
|
|
6
|
Interest
expense
|
|
114
|
|
95
|
Earnings (loss)
before income taxes
|
|
204
|
|
(65)
|
Income tax
expense
|
|
118
|
|
67
|
Equity in
earnings (loss) of affiliates
|
|
6
|
|
(1)
|
Net income
(loss)
|
|
92
|
|
(133)
|
Less: Noncontrolling
interests net income
|
|
17
|
|
11
|
Less: Redeemable
noncontrolling interests net loss
|
|
(2)
|
|
(81)
|
Net income
(loss) attributable to the parent company
|
|
$
77
|
|
$
(63)
|
|
|
|
|
|
|
Net income
(loss) per share available to common
stockholders
|
|
|
|
|
Basic
|
|
|
$
0.53
|
|
$
(0.44)
|
Diluted
|
|
|
$
0.53
|
|
$
(0.44)
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Basic
|
|
144.2
|
|
143.6
|
Weighted-average
shares outstanding - Diluted
|
|
144.5
|
|
143.6
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Comprehensive Income (Unaudited)
|
|
|
|
|
|
For the Three
Months Ended September 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
|
|
|
2023
|
|
2022
|
Net income
(loss)
|
|
$
25
|
|
$
(163)
|
Other
comprehensive income (loss), net of tax:
|
|
|
|
|
Currency translation adjustments
|
|
(24)
|
|
(82)
|
Hedging gains and losses
|
|
(21)
|
|
1
|
Defined benefit plans
|
|
(1)
|
|
1
|
Other comprehensive loss
|
|
(46)
|
|
(80)
|
Total comprehensive
loss
|
|
(21)
|
|
(243)
|
Less: Comprehensive income attributable to noncontrolling
interests
|
|
(7)
|
|
(1)
|
Less: Comprehensive loss attributable to redeemable
noncontrolling interests
|
|
4
|
|
89
|
Comprehensive loss
attributable to the parent company
|
|
$
(24)
|
|
$
(155)
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Comprehensive Income (Unaudited)
|
|
|
|
|
|
For the Nine
Months Ended September 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
|
|
|
2023
|
|
2022
|
Net income
(loss)
|
|
$
92
|
|
$
(133)
|
Other
comprehensive income (loss), net of tax:
|
|
|
|
|
Currency translation adjustments
|
|
(6)
|
|
(134)
|
Hedging gains and losses
|
|
(3)
|
|
(2)
|
Defined benefit plans
|
|
|
|
5
|
Other comprehensive income (loss)
|
|
(9)
|
|
(131)
|
Total comprehensive
income (loss)
|
|
83
|
|
(264)
|
Less: Comprehensive income attributable to noncontrolling
interests
|
|
(16)
|
|
(6)
|
Less: Comprehensive loss attributable to redeemable
noncontrolling interests
|
|
4
|
|
97
|
Comprehensive income
(loss) attributable to the parent company
|
|
$
71
|
|
$
(173)
|
DANA
INCORPORATED
|
|
|
|
|
|
|
Consolidated
Balance Sheet (Unaudited)
|
|
|
|
|
|
|
As of
September 30, 2023 and December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except share and per share amounts)
|
|
September
30,
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
421
|
|
$
425
|
Accounts
receivable
|
|
|
|
|
Trade, less allowance for doubtful accounts of $11 in 2023
and $11 in 2022
|
|
1,562
|
|
1,374
|
Other
|
|
292
|
|
202
|
Inventories
|
|
1,713
|
|
1,609
|
Other current
assets
|
|
232
|
|
219
|
Total current
assets
|
|
4,220
|
|
3,829
|
Goodwill
|
|
256
|
|
259
|
Intangibles
|
|
184
|
|
201
|
Deferred tax
assets
|
|
437
|
|
397
|
Other noncurrent
assets
|
|
128
|
|
123
|
Investments in
affiliates
|
|
135
|
|
136
|
Operating lease
assets
|
|
327
|
|
311
|
Property, plant
and equipment, net
|
|
2,250
|
|
2,193
|
Total
assets
|
|
$
7,937
|
|
$
7,449
|
|
|
|
|
|
|
|
Liabilities,
redeemable noncontrolling interests and equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
debt
|
|
$
37
|
|
$
52
|
Current portion
of long-term debt
|
|
31
|
|
8
|
Accounts
payable
|
|
1,883
|
|
1,838
|
Accrued payroll
and employee benefits
|
|
273
|
|
214
|
Taxes on
income
|
|
85
|
|
54
|
Current portion
of operating lease liabilities
|
|
38
|
|
36
|
Other accrued
liabilities
|
|
323
|
|
277
|
Total current
liabilities
|
|
2,670
|
|
2,479
|
Long-term debt,
less debt issuance costs of $25 in 2023 and $22 in
2022
|
|
2,563
|
|
2,348
|
Noncurrent
operating lease liabilities
|
|
287
|
|
277
|
Pension and
postretirement obligations
|
|
297
|
|
298
|
Other noncurrent
liabilities
|
|
263
|
|
249
|
Total
liabilities
|
|
6,080
|
|
5,651
|
Commitments and contingencies
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
|
|
210
|
|
195
|
Parent company
stockholders' equity
|
|
|
|
|
Preferred stock, 50,000,000 shares authorized, $0.01 par
value,
|
|
|
|
|
no shares
outstanding
|
|
-
|
|
-
|
Common stock, 450,000,000 shares authorized, $0.01 par
value,
|
|
|
|
|
144,337,917 and 143,366,482
shares outstanding
|
|
2
|
|
2
|
Additional paid-in capital
|
|
2,249
|
|
2,229
|
Retained earnings
|
|
353
|
|
321
|
Treasury stock, at cost (450,729 and zero
shares)
|
|
(8)
|
|
-
|
Accumulated other comprehensive loss
|
|
(1,007)
|
|
(1,001)
|
Total parent company
stockholders' equity
|
|
1,589
|
|
1,551
|
Noncontrolling
interests
|
|
58
|
|
52
|
Total
equity
|
|
1,647
|
|
1,603
|
Total liabilities, redeemable
noncontrolling interests and equity
|
|
$
7,937
|
|
$
7,449
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Cash Flows (Unaudited)
|
|
|
|
|
For the Three
Months Ended September 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
|
2023
|
|
2022
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
$
25
|
|
$
(163)
|
Depreciation
|
|
101
|
|
88
|
Amortization
|
|
6
|
|
6
|
Amortization of
deferred financing charges
|
|
1
|
|
1
|
Earnings of
affiliates, net of dividends received
|
|
(1)
|
|
|
Stock
compensation expense
|
|
5
|
|
5
|
Deferred income
taxes
|
|
(16)
|
|
(14)
|
Pension expense,
net
|
|
2
|
|
|
Impairment of
goodwill
|
|
|
|
191
|
Change in working
capital
|
|
3
|
|
63
|
Other,
net
|
|
(14)
|
|
(6)
|
Net cash
provided by operating activities
|
|
112
|
|
171
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(117)
|
|
(94)
|
Purchases of
marketable securities
|
|
|
|
(2)
|
Proceeds from
sales of marketable securities
|
|
|
|
8
|
Settlements of
undesignated derivatives
|
|
(6)
|
|
1
|
Other,
net
|
|
(15)
|
|
5
|
Net cash used
in investing activities
|
|
(138)
|
|
(82)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Net change in
short-term debt
|
|
2
|
|
(2)
|
Repayment of
long-term debt
|
|
(3)
|
|
(14)
|
Dividends paid to
common stockholders
|
|
(14)
|
|
(14)
|
Distributions to
noncontrolling interests
|
|
(7)
|
|
(6)
|
Contributions
from redeemable noncontrolling interests
|
|
1
|
|
23
|
Other,
net
|
|
1
|
|
(1)
|
Net cash used
in financing activities
|
|
(20)
|
|
(14)
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
|
(46)
|
|
75
|
Cash, cash
equivalents and restricted cash − beginning of
period
|
|
503
|
|
340
|
Effect of
exchange rate changes on cash balances
|
|
(17)
|
|
(25)
|
Cash, cash
equivalents and restricted cash − end of
period
|
|
$
440
|
|
$
390
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Cash Flows (Unaudited)
|
|
|
|
|
For the Nine
Months Ended September 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
|
2023
|
|
2022
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
$
92
|
|
$
(133)
|
Depreciation
|
|
287
|
|
270
|
Amortization
|
|
17
|
|
17
|
Amortization of
deferred financing charges
|
|
4
|
|
4
|
Write-off of
deferred financing costs
|
|
1
|
|
|
Earnings of
affiliates, net of dividends received
|
|
(4)
|
|
29
|
Stock
compensation expense
|
|
19
|
|
13
|
Deferred income
taxes
|
|
(46)
|
|
(56)
|
Pension expense,
net
|
|
4
|
|
|
Impairment of
goodwill
|
|
|
|
191
|
Change in working
capital
|
|
(169)
|
|
(21)
|
Other,
net
|
|
(7)
|
|
(7)
|
Net cash
provided by operating activities
|
|
198
|
|
307
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(359)
|
|
(300)
|
Acquisition of
business, net of cash acquired
|
|
|
|
(1)
|
Purchases of
marketable securities
|
|
|
|
(15)
|
Proceeds from
sales of marketable securities
|
|
|
|
18
|
Settlements of
undesignated derivatives
|
|
(10)
|
|
(6)
|
Other,
net
|
|
(14)
|
|
7
|
Net cash used
in investing activities
|
|
(383)
|
|
(297)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Net change in
short-term debt
|
|
(15)
|
|
212
|
Proceeds from
long-term debt
|
|
458
|
|
2
|
Repayment of
long-term debt
|
|
(207)
|
|
(19)
|
Deferred
financing payments
|
|
(9)
|
|
|
Dividends paid to
common stockholders
|
|
(43)
|
|
(43)
|
Repurchases of
common stock
|
|
|
|
(25)
|
Distributions to
noncontrolling interests
|
|
(10)
|
|
(8)
|
Contributions
from redeemable noncontrolling interests
|
|
18
|
|
30
|
Payments to
acquire noncontrolling interests
|
|
|
|
(4)
|
Other,
net
|
|
(3)
|
|
(7)
|
Net cash
provided by financing activities
|
|
189
|
|
138
|
|
|
|
|
|
|
Net increase
in cash, cash equivalents and restricted cash
|
|
4
|
|
148
|
Cash, cash
equivalents and restricted cash − beginning of
period
|
|
442
|
|
287
|
Effect of
exchange rate changes on cash balances
|
|
(6)
|
|
(45)
|
Cash, cash
equivalents and restricted cash − end of
period
|
|
$
440
|
|
$
390
|
DANA
INCORPORATED
|
|
|
|
|
|
Reconciliation
of Net Cash Provided By Operating Activities
to
|
Free
Cash Flow (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
2023
|
|
2022
|
Net cash
provided by operating activities
|
|
$
112
|
|
$ 171
|
Purchases of
property, plant and equipment
|
|
(117)
|
|
(94)
|
Free cash
flow
|
|
$
(5)
|
|
$
77
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
2023
|
|
2022
|
Net cash
provided by operating activities
|
|
$
198
|
|
$ 307
|
Purchases of
property, plant and equipment
|
|
(359)
|
|
(300)
|
Free cash
flow
|
|
$
(161)
|
|
$
7
|
DANA
INCORPORATED
|
|
|
|
|
Segment Sales
and Segment EBITDA (Unaudited)
|
|
|
For the Three
Months Ended September 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
2023
|
|
2022
|
Sales
|
|
|
|
|
Light
Vehicle
|
|
$
1,084
|
|
$
1,047
|
Commercial
Vehicle
|
|
535
|
|
505
|
Off-Highway
|
|
739
|
|
694
|
Power
Technologies
|
|
311
|
|
289
|
Total
Sales
|
|
$
2,669
|
|
$
2,535
|
|
|
|
|
|
Segment
EBITDA
|
|
|
|
|
Light
Vehicle
|
|
$
75
|
|
$
60
|
Commercial
Vehicle
|
|
29
|
|
18
|
Off-Highway
|
|
110
|
|
91
|
Power
Technologies
|
|
28
|
|
21
|
Total Segment
EBITDA
|
|
242
|
|
190
|
Corporate expense
and other items, net
|
|
|
|
2
|
Adjusted
EBITDA
|
|
$
242
|
|
$
192
|
DANA
INCORPORATED
|
|
|
|
|
Segment Sales
and Segment EBITDA (Unaudited)
|
|
|
For the Nine
Months Ended September 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
2023
|
|
2022
|
Sales
|
|
|
|
|
Light
Vehicle
|
|
$
3,112
|
|
$
3,060
|
Commercial
Vehicle
|
|
1,583
|
|
1,475
|
Off-Highway
|
|
2,423
|
|
2,206
|
Power
Technologies
|
|
943
|
|
860
|
Total
Sales
|
|
$
8,061
|
|
$
7,601
|
|
|
|
|
|
Segment
EBITDA
|
|
|
|
|
Light
Vehicle
|
|
$
190
|
|
$
124
|
Commercial
Vehicle
|
|
74
|
|
38
|
Off-Highway
|
|
359
|
|
291
|
Power
Technologies
|
|
70
|
|
71
|
Total Segment
EBITDA
|
|
693
|
|
524
|
Corporate expense
and other items, net
|
|
(4)
|
|
|
Adjusted
EBITDA
|
|
$
689
|
|
$
524
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation
of Segment and Adjusted EBITDA to Net Income (Loss)
(Unaudited)
|
|
|
For the Three
Months Ended September 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
2023
|
|
2022
|
Segment
EBITDA
|
|
$
242
|
|
$
190
|
Corporate expense and
other items, net
|
|
|
|
2
|
Adjusted
EBITDA
|
|
242
|
|
192
|
Depreciation
|
|
(101)
|
|
(88)
|
Amortization
|
|
(6)
|
|
(6)
|
Non-service cost
components of pension and OPEB costs
|
|
(4)
|
|
|
Restructuring charges,
net
|
|
(17)
|
|
1
|
Stock compensation
expense
|
|
(5)
|
|
(5)
|
Strategic transaction
expenses
|
|
(2)
|
|
(1)
|
Distressed supplier
costs
|
|
(14)
|
|
|
Impairment of
goodwill
|
|
|
|
(191)
|
Other items
|
|
(2)
|
|
(3)
|
Earnings (loss)
before interest and income taxes
|
|
91
|
|
(101)
|
Interest
income
|
|
5
|
|
2
|
Interest
expense
|
|
41
|
|
32
|
Earnings (loss)
before income taxes
|
|
55
|
|
(131)
|
Income tax
expense
|
|
33
|
|
31
|
Equity in
earnings (loss) of affiliates
|
|
3
|
|
(1)
|
Net income
(loss)
|
|
$
25
|
|
$
(163)
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation
of Segment and Adjusted EBITDA to Net Income (Loss)
(Unaudited)
|
|
|
For the Nine
Months Ended September 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
(In
millions)
|
|
September
30,
|
|
|
2023
|
|
2022
|
Segment
EBITDA
|
|
$
693
|
|
$
524
|
Corporate expense and
other items, net
|
|
(4)
|
|
|
Adjusted
EBITDA
|
|
689
|
|
524
|
Depreciation
|
|
(287)
|
|
(270)
|
Amortization
|
|
(17)
|
|
(17)
|
Non-service cost
components of pension and OPEB costs
|
|
(10)
|
|
(3)
|
Restructuring charges,
net
|
|
(21)
|
|
1
|
Stock compensation
expense
|
|
(19)
|
|
(13)
|
Strategic transaction
expenses
|
|
(4)
|
|
(6)
|
Distressed supplier
costs
|
|
(26)
|
|
|
Impairment of
goodwill
|
|
|
|
(191)
|
Other items
|
|
|
|
(1)
|
Earnings before
interest and income taxes
|
|
305
|
|
24
|
Loss on extinguishment
of debt
|
|
(1)
|
|
|
Interest
income
|
|
14
|
|
6
|
Interest
expense
|
|
114
|
|
95
|
Earnings (loss)
before income taxes
|
|
204
|
|
(65)
|
Income tax
expense
|
|
118
|
|
67
|
Equity in
earnings (loss) of affiliates
|
|
6
|
|
(1)
|
Net income
(loss)
|
|
$
92
|
|
$
(133)
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation
of Net Income (Loss) Attributable to the Parent Company
to
|
|
|
Adjusted Net Income Attributable to the Parent Company
and
|
|
|
|
|
Diluted
Adjusted EPS (Unaudited)
|
|
|
|
|
For the Three
Months Ended September 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
|
2023
|
|
2022
|
Net income
(loss) attributable to the parent company
|
|
$
19
|
|
$
(88)
|
Items impacting
income (loss) before income taxes:
|
|
|
|
|
Amortization
|
|
5
|
|
5
|
Restructuring charges, net
|
|
17
|
|
(1)
|
Strategic transaction expenses
|
|
2
|
|
3
|
Distressed supplier costs
|
|
14
|
|
|
Impairment of goodwill
|
|
|
|
118
|
Other items
|
|
2
|
|
|
Items impacting
income taxes:
|
|
|
|
|
Net
income tax expense on items above
|
|
(16)
|
|
(5)
|
Income tax expense attributable to various discrete tax
matters
|
|
|
|
2
|
Adjusted net
income attributable to the parent company
|
|
$
43
|
|
$
34
|
|
|
|
|
|
Diluted shares -
as reported
|
|
144.7
|
|
143.4
|
Adjusted diluted
shares
|
|
144.7
|
|
143.8
|
|
|
|
|
|
Diluted
adjusted EPS
|
|
$
0.30
|
|
$
0.24
|
DANA
INCORPORATED
|
|
|
|
|
Reconciliation
of Net Income (Loss) Attributable to the Parent Company
to
|
|
|
Adjusted Net Income Attributable to the Parent Company
and
|
|
|
|
|
Diluted
Adjusted EPS (Unaudited)
|
|
|
|
|
For the Nine
Months Ended September 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2023
|
|
2022
|
Net income
(loss) attributable to the parent company
|
|
$
77
|
|
$
(63)
|
Items impacting
income (loss) before income taxes:
|
|
|
|
|
Amortization
|
|
15
|
|
15
|
Restructuring charges, net
|
|
21
|
|
(1)
|
Strategic transaction expenses
|
|
4
|
|
8
|
Distressed supplier costs
|
|
26
|
|
|
Impairment of goodwill
|
|
|
|
118
|
Other items
|
|
2
|
|
|
Items impacting
income taxes:
|
|
|
|
|
Net
income tax expense on items above
|
|
(26)
|
|
(10)
|
Income tax expense attributable to various discrete tax
matters
|
|
14
|
|
2
|
Adjusted net
income attributable to the parent company
|
|
$
133
|
|
$
69
|
|
|
|
|
|
|
Diluted shares -
as reported
|
|
144.5
|
|
143.6
|
Adjusted diluted
shares
|
|
144.5
|
|
144.4
|
|
|
|
|
|
|
Diluted
adjusted EPS
|
|
$
0.92
|
|
$
0.48
|
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SOURCE Dana Incorporated