Full-year Results
- Sales of $10.6 billion, an
increase of $0.4 billion or 4 percent
over last year
- Net income of $38 million,
compared with a net loss of $242
million in 2022
- Adjusted EBITDA of $845
million, an increase of $145
million over last year
- Adjusted EBITDA margin of 8 percent, a 110-basis-point
improvement compared with 2022
- Operating cash flow of $476
million
- Record three-year new business sales backlog of $950 million, a $50
million increase over prior backlog
- 2024 guidance of approximately 3 percent increase in sales,
10 percent increase in adjusted EBITDA, $75
million increase in free cash flow
MAUMEE, Ohio, Feb. 20, 2024 /PRNewswire/ -- Dana
Incorporated (NYSE: DAN) today announced financial results for the
fourth quarter and full-year 2023.
"With record sales reaching $10.6
billion for 2023, Dana continues its strong trajectory built
on our balanced approach of supplying both conventional and
clean-energy solutions to nearly every vehicle manufacturer around
the globe. The Dana team successfully launched a
company-record number of programs across all markets we serve,
while delivering substantial profit conversion on our growth," said
James Kamsickas, chairman and chief
executive officer.
"We are building on this strong momentum, as we expect to
further expand sales and profit margin into 2024. Our record
three-year new business backlog has grown to $950 million, marking the seventh consecutive
year we have recorded an increase. This reflects our team's
relentless commitment to being a leading supplier to the world's
top vehicle manufacturers for internal combustion, hybrid, and
electric vehicles."
Fourth-quarter 2023 Financial Results
Sales for the
fourth quarter of 2023 totaled $2.5
billion, compared with $2.6
billion in the same period of 2022. Lower sales in
2023 were driven by the impact of the UAW strike on our Light
Vehicle Driveline segment, which was partially offset by
cost-recovery actions and conversion of the sales backlog.
Adjusted EBITDA for the fourth quarter of 2023 was
$156 million, compared with $176 million for the same
period in 2022. Strong efficiency improvements partially
offset the margin impact of the UAW strike and higher spending on
development for electric-vehicle products.
The net loss attributable to Dana was $39
million, or $0.27 per share,
compared with a net loss of $179
million, or $1.25 per share,
in the fourth quarter of 2022 due primarily to the impact of the
UAW strike, lower earnings from equity-method affiliates, and the
devaluation of the Argentine peso. The loss in 2022 resulted
primarily from the recording of non-cash tax valuation
allowances.
The adjusted net loss attributable to Dana was $11 million,
or $0.08 per share, for the
fourth quarter of 2023, compared with an adjusted net loss of
$15 million or $0.10 earnings per share in 2022. Operating cash
flow in the fourth quarter of 2023 was $278 million, compared
with $342 million in the same period of 2022. Free cash
flow was $136 million, compared with
$202 million in the fourth quarter of 2022. The decrease
was driven by higher working capital requirements.
Full-year 2023 Financial Results
Sales for 2023 were $10.6 billion, compared with
$10.2 billion in 2022. The
increase of $399 million resulted
from improved overall market demand and conversion of the sales
backlog, combined with pricing actions and cost recoveries
partially offset by the UAW strike.
Adjusted EBITDA for 2023 was $845 million, compared with
$700 million in 2022 driven by
refreshed and new programs, efficiency improvement actions, and
more stable customer order patterns.
The net income attributable to Dana for 2023 was $38 million or $0.26 per share, compared with a net loss of
$242 million or a loss of
$1.69 per share in 2022. The
loss in 2022 resulted from a one-time non-cash goodwill impairment
charge and from non-cash tax valuation allowances.
Adjusted net income attributable to Dana was $122 million and diluted adjusted earnings per
share were $0.84 in 2023,
compared with an adjusted net income of $54 million and
$0.37 per share in 2022.
The company reported operating cash flow of $476 million in
2023. Free cash flow was a use of $25
million, compared with free cash flow of $209 million in 2022. Cash flow use this
year was driven by increased working capital requirements and
higher capital spending partially offset by higher operating
earnings.
"Finishing 2023 with strong results has set the stage for
continued profitable growth," said Timothy
Kraus, Dana senior vice president and chief financial
officer. "In 2024, we expect another record sales year,
further improved margins, and higher free cash flow as we leverage
the improved cross-company efficiencies and begin to benefit from
the record number of new and refreshed vehicle programs."
2024 Financial Targets
- Sales of $10.65 to $11.15 billion;
- Adjusted EBITDA of $875 to $975
million, an implied adjusted EBITDA margin of approximately
8.5 percent at the midpoint of the range;
- Operating cash flow of approximately $475 to $525 million; and
- Free cash flow of $25 to
$75 million;
- Diluted EPS of $0.35 to
$0.85.
Dana to Host Conference Call at 10 a.m. Tuesday, Feb. 20
Dana will discuss its
fourth-quarter and full-year results in a conference call at
10 a.m. EST on Tuesday, Feb.
20. 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. Phone registration will be
available beginning at 9:30 a.m.
EST.
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 $10.6
billion in 2023 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 December 31, 2023 and
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In millions,
except per share amounts)
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
Net sales
|
|
|
$ 2,494
|
|
$ 2,555
|
Costs and
expenses
|
|
|
|
|
Cost of sales
|
|
2,330
|
|
2,375
|
Selling, general and
administrative expenses
|
|
139
|
|
121
|
Amortization of
intangibles
|
|
3
|
|
4
|
Restructuring charges,
net
|
|
4
|
|
|
Other income
(expense), net
|
|
(7)
|
|
7
|
Earnings before
interest and income taxes
|
|
11
|
|
62
|
Interest
income
|
|
3
|
|
5
|
Interest
expense
|
|
40
|
|
33
|
Earnings (loss)
before income taxes
|
|
(26)
|
|
34
|
Income tax
expense
|
|
3
|
|
217
|
Equity in
earnings (loss) of affiliates
|
|
(15)
|
|
5
|
Net loss
|
|
|
(44)
|
|
(178)
|
Less: Noncontrolling
interests net income
|
|
5
|
|
4
|
Less: Redeemable
noncontrolling interests net loss
|
|
(10)
|
|
(3)
|
Net loss attributable to the parent
company
|
|
$
(39)
|
|
$
(179)
|
|
|
|
|
|
|
Net loss per share available to common
stockholders
|
|
|
|
|
Basic
|
|
|
$
(0.27)
|
|
$
(1.25)
|
Diluted
|
|
|
$
(0.27)
|
|
$
(1.25)
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Basic
|
|
144.5
|
|
143.4
|
Weighted-average
shares outstanding - Diluted
|
|
144.5
|
|
143.4
|
DANA INCORPORATED
|
|
|
|
|
|
Consolidated Statement of
Operations
|
|
|
|
|
|
For the Year Ended December 31, 2023 and
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
(In millions,
except per share amounts)
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
Net sales
|
|
|
$
10,555
|
|
$
10,156
|
Costs and
expenses
|
|
|
|
|
Cost of sales
|
|
9,655
|
|
9,393
|
Selling, general and
administrative expenses
|
|
549
|
|
495
|
Amortization of
intangibles
|
|
13
|
|
14
|
Restructuring charges,
net
|
|
25
|
|
(1)
|
Impairment of
goodwill
|
|
|
|
(191)
|
Other income
(expense), net
|
|
3
|
|
22
|
Earnings before
interest and income taxes
|
|
316
|
|
86
|
Loss on
extinguishment of debt
|
|
(1)
|
|
|
Interest
income
|
|
17
|
|
11
|
Interest
expense
|
|
154
|
|
128
|
Earnings (loss)
before income taxes
|
|
178
|
|
(31)
|
Income tax
expense
|
|
121
|
|
284
|
Equity in
earnings (loss) of affiliates
|
|
(9)
|
|
4
|
Net income (loss)
|
|
48
|
|
(311)
|
Less: Noncontrolling
interests net income
|
|
22
|
|
15
|
Less: Redeemable
noncontrolling interests net loss
|
|
(12)
|
|
(84)
|
Net income (loss) attributable to the parent
company
|
|
$
38
|
|
$
(242)
|
|
|
|
|
|
|
Net income (loss) per share available to common
stockholders
|
|
|
|
|
Basic
|
|
|
$
0.26
|
|
$
(1.69)
|
Diluted
|
|
|
$
0.26
|
|
$
(1.69)
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Basic
|
|
144.4
|
|
143.6
|
Weighted-average
shares outstanding - Diluted
|
|
144.6
|
|
143.6
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Comprehensive Income (Unaudited)
|
|
|
|
|
|
For the Three
Months Ended December 31, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
Net
loss
|
|
|
$
(44)
|
|
$
(178)
|
Other
comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
Currency translation
adjustments
|
|
|
36
|
|
32
|
|
Hedging gains and
losses
|
|
|
2
|
|
19
|
|
Defined benefit
plans
|
|
|
(16)
|
|
48
|
|
Other comprehensive
income
|
|
|
22
|
|
99
|
Total comprehensive
loss
|
|
|
(22)
|
|
(79)
|
|
Less: Comprehensive
income attributable to noncontrolling interests
|
|
|
(6)
|
|
(4)
|
|
Less: Comprehensive
(income) loss attributable to redeemable noncontrolling
interests
|
|
|
6
|
|
(2)
|
Comprehensive loss
attributable to the parent company
|
|
|
$
(22)
|
|
$
(85)
|
DANA
INCORPORATED
|
|
|
|
|
|
Consolidated
Statement of Comprehensive Income
|
|
|
|
|
|
For the Year
Ended December 31, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
(In
millions)
|
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
Net income
(loss)
|
|
|
$
48
|
|
$
(311)
|
Other
comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
Currency translation
adjustments
|
|
|
30
|
|
(102)
|
|
Hedging gains and
losses
|
|
|
(1)
|
|
17
|
|
Defined benefit
plans
|
|
|
(16)
|
|
53
|
|
Other comprehensive
income (loss)
|
|
|
13
|
|
(32)
|
Total comprehensive
income (loss)
|
|
|
61
|
|
(343)
|
|
Less: Comprehensive
income attributable to noncontrolling interests
|
|
|
(22)
|
|
(10)
|
|
Less: Comprehensive
loss attributable to redeemable noncontrolling interests
|
|
|
10
|
|
95
|
Comprehensive income
(loss) attributable to the parent company
|
|
|
$
49
|
|
$
(258)
|
DANA
INCORPORATED
|
|
|
|
|
|
|
Consolidated
Balance Sheet
|
|
|
|
|
|
|
As of December
31, 2023 and December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except share and per share amounts)
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2023
|
|
2022
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
529
|
|
$
425
|
Accounts
receivable
|
|
|
|
|
|
Trade, less allowance for doubtful accounts of $16 in 2023
and $11 in 2022
|
|
|
1,371
|
|
1,374
|
Other
|
|
|
280
|
|
202
|
Inventories
|
|
|
1,676
|
|
1,609
|
Other current
assets
|
|
|
247
|
|
219
|
Total current assets
|
|
4,103
|
|
3,829
|
Goodwill
|
|
|
263
|
|
259
|
Intangibles
|
|
|
182
|
|
201
|
Deferred tax
assets
|
|
|
516
|
|
397
|
Other noncurrent
assets
|
|
|
140
|
|
123
|
Investments in
affiliates
|
|
|
123
|
|
136
|
Operating lease
assets
|
|
|
327
|
|
311
|
Property, plant
and equipment, net
|
|
|
2,311
|
|
2,193
|
Total assets
|
|
$
7,965
|
|
$
7,449
|
|
|
|
|
|
|
|
Liabilities,
redeemable noncontrolling interests and equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term
debt
|
|
|
$
22
|
|
$
52
|
Current portion
of long-term debt
|
|
|
35
|
|
8
|
Accounts
payable
|
|
|
1,756
|
|
1,838
|
Accrued payroll
and employee benefits
|
|
|
288
|
|
214
|
Taxes on
income
|
|
|
86
|
|
54
|
Current portion
of operating lease liabilities
|
|
|
42
|
|
36
|
Other accrued
liabilities
|
|
|
373
|
|
277
|
Total current liabilities
|
|
2,602
|
|
2,479
|
Long-term debt,
less debt issuance costs of $24 in 2023 and $22 in
2022
|
|
|
2,598
|
|
2,348
|
Noncurrent
operating lease liabilities
|
|
|
284
|
|
277
|
Pension and
postretirement obligations
|
|
|
334
|
|
298
|
Other noncurrent
liabilities
|
|
|
319
|
|
249
|
Total liabilities
|
|
6,137
|
|
5,651
|
Commitments and contingencies
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
|
|
191
|
|
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,
|
|
|
|
|
|
144,386,484 and 143,366,482 shares
outstanding
|
|
2
|
|
2
|
Additional paid-in
capital
|
|
|
2,255
|
|
2,229
|
Retained
earnings
|
|
|
317
|
|
321
|
Treasury stock, at cost
(474,981 and zero shares)
|
|
|
(9)
|
|
-
|
Accumulated other
comprehensive loss
|
|
|
(990)
|
|
(1,001)
|
Total parent company stockholders' equity
|
|
1,575
|
|
1,551
|
Noncontrolling
interests
|
|
|
62
|
|
52
|
Total equity
|
|
1,637
|
|
1,603
|
Total liabilities, redeemable noncontrolling interests and
equity
|
|
$
7,965
|
|
$
7,449
|
DANA INCORPORATED
|
|
|
|
|
|
Consolidated Statement of Cash Flows
(Unaudited)
|
|
|
|
|
For the Three Months Ended December 31, 2023 and
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
Operating activities
|
|
|
|
|
Net
loss
|
|
$
(44)
|
|
$
(178)
|
Depreciation
|
|
106
|
|
95
|
Amortization
|
|
6
|
|
6
|
Amortization of
deferred financing charges
|
|
1
|
|
1
|
Earnings of
affiliates, net of dividends received
|
|
15
|
|
(6)
|
Stock
compensation expense
|
|
7
|
|
6
|
Deferred income
taxes
|
|
(58)
|
|
209
|
Pension expense,
net
|
|
(1)
|
|
(1)
|
Change in working
capital
|
|
239
|
|
220
|
Change in other
noncurrent assets and liabilities
|
|
11
|
|
3
|
Other,
net
|
|
(4)
|
|
(13)
|
Net cash provided by operating
activities
|
|
278
|
|
342
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(142)
|
|
(140)
|
Proceeds from
sale of property, plant and equipment
|
|
2
|
|
3
|
Proceeds from
sales of marketable securities
|
|
|
|
12
|
Settlements of
undesignated derivatives
|
|
(3)
|
|
(2)
|
Other,
net
|
|
(2)
|
|
(2)
|
Net cash used in investing
activities
|
|
(145)
|
|
(129)
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Net change in
short-term debt
|
|
(15)
|
|
(179)
|
Repayment of
long-term debt
|
|
(2)
|
|
(5)
|
Dividends paid to
common stockholders
|
|
(15)
|
|
(15)
|
Distributions to
noncontrolling interests
|
|
|
|
(1)
|
Contributions
from redeemable noncontrolling interests
|
|
4
|
|
21
|
Other,
net
|
|
(1)
|
|
(1)
|
Net cash used in financing
activities
|
|
(29)
|
|
(180)
|
|
|
|
|
|
|
Net increase in cash, cash equivalents and
restricted cash
|
|
104
|
|
33
|
Cash, cash
equivalents and restricted cash − beginning of period
|
|
440
|
|
390
|
Effect of
exchange rate changes on cash balances
|
|
19
|
|
19
|
Cash, cash equivalents and restricted cash −
end of period
|
|
$
563
|
|
$
442
|
DANA INCORPORATED
|
|
|
|
|
|
Consolidated Statement of Cash
Flows
|
|
|
|
|
For the Year Ended December 31, 2023 and
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
(In
millions)
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
Operating activities
|
|
|
|
|
Net income
(loss)
|
|
$
48
|
|
$
(311)
|
Depreciation
|
|
393
|
|
365
|
Amortization
|
|
23
|
|
23
|
Amortization of
deferred financing charges
|
|
5
|
|
5
|
Write-off of
deferred financing costs
|
|
1
|
|
|
Earnings of
affiliates, net of dividends received
|
|
11
|
|
23
|
Stock
compensation expense
|
|
26
|
|
19
|
Deferred income
taxes
|
|
(104)
|
|
153
|
Pension expense,
net
|
|
3
|
|
(1)
|
Impairment of
goodwill
|
|
|
|
191
|
Change in working
capital
|
|
70
|
|
199
|
Change in other
noncurrent assets and liabilities
|
|
11
|
|
9
|
Other,
net
|
|
(11)
|
|
(26)
|
Net cash provided by operating
activities
|
|
476
|
|
649
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(501)
|
|
(440)
|
Proceeds from
sale of property, plant and equipment
|
|
2
|
|
3
|
Acquisition of
business, net of cash acquired
|
|
|
|
(1)
|
Purchases of
marketable securities
|
|
|
|
(15)
|
Proceeds from
sales of marketable securities
|
|
|
|
30
|
Settlements of
undesignated derivatives
|
|
(13)
|
|
(8)
|
Other,
net
|
|
(16)
|
|
5
|
Net cash used in investing
activities
|
|
(528)
|
|
(426)
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Net change in
short-term debt
|
|
(30)
|
|
33
|
Proceeds from
long-term debt
|
|
458
|
|
2
|
Repayment of
long-term debt
|
|
(209)
|
|
(24)
|
Deferred
financing payments
|
|
(9)
|
|
|
Dividends paid to
common stockholders
|
|
(58)
|
|
(58)
|
Repurchases of
common stock
|
|
|
|
(25)
|
Distributions to
noncontrolling interests
|
|
(10)
|
|
(9)
|
Contributions
from redeemable noncontrolling interests
|
|
22
|
|
51
|
Payments to
acquire noncontrolling interests
|
|
|
|
(4)
|
Other,
net
|
|
(4)
|
|
(8)
|
Net cash provided by (used in) financing
activities
|
|
160
|
|
(42)
|
|
|
|
|
|
|
Net increase in cash, cash equivalents and
restricted cash
|
|
108
|
|
181
|
Cash, cash
equivalents and restricted cash − beginning of period
|
|
442
|
|
287
|
Effect of
exchange rate changes on cash balances
|
|
13
|
|
(26)
|
Cash, cash equivalents and restricted cash −
end of period
|
|
$
563
|
|
$
442
|
DANA INCORPORATED
|
|
|
|
|
|
Reconciliation of Net Cash Provided By Operating
Activities to
|
Free Cash Flow
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
December
31,
|
|
|
2023
|
|
2022
|
Net cash provided by operating
activities
|
|
$
278
|
|
$ 342
|
Purchases of
property, plant and equipment
|
|
(142)
|
|
(140)
|
Free cash flow
|
|
$
136
|
|
$ 202
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
December
31,
|
|
|
2023
|
|
2022
|
Net cash provided by operating
activities
|
|
$
476
|
|
$ 649
|
Purchases of
property, plant and equipment
|
|
(501)
|
|
(440)
|
Free cash flow
|
|
$
(25)
|
|
$ 209
|
DANA INCORPORATED
|
|
|
|
|
Segment Sales and Segment EBITDA
(Unaudited)
|
|
|
For the Three Months Ended December 31, 2023 and
2022
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
December
31,
|
|
|
2023
|
|
2022
|
Sales
|
|
|
|
|
Light
Vehicle
|
|
$
923
|
|
$
1,030
|
Commercial
Vehicle
|
|
509
|
|
504
|
Off-Highway
|
|
762
|
|
740
|
Power
Technologies
|
|
300
|
|
281
|
Total Sales
|
|
$
2,494
|
|
$
2,555
|
|
|
|
|
|
Segment EBITDA
|
|
|
|
|
Light
Vehicle
|
|
$
22
|
|
$
34
|
Commercial
Vehicle
|
|
13
|
|
5
|
Off-Highway
|
|
106
|
|
113
|
Power
Technologies
|
|
19
|
|
23
|
Total Segment EBITDA
|
|
160
|
|
175
|
Corporate expense
and other items, net
|
|
(4)
|
|
1
|
Adjusted EBITDA
|
|
$
156
|
|
$
176
|
DANA INCORPORATED
|
|
|
|
|
Segment Sales and Segment
EBITDA
|
|
|
|
For the Year Ended December 31, 2023 and
2022
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
(In
millions)
|
|
December
31,
|
|
|
2023
|
|
2022
|
Sales
|
|
|
|
|
Light
Vehicle
|
|
$
4,035
|
|
$
4,090
|
Commercial
Vehicle
|
|
2,092
|
|
1,979
|
Off-Highway
|
|
3,185
|
|
2,946
|
Power
Technologies
|
|
1,243
|
|
1,141
|
Total Sales
|
|
$ 10,555
|
|
$ 10,156
|
|
|
|
|
|
Segment EBITDA
|
|
|
|
|
Light
Vehicle
|
|
$
212
|
|
$
158
|
Commercial
Vehicle
|
|
87
|
|
43
|
Off-Highway
|
|
465
|
|
404
|
Power
Technologies
|
|
89
|
|
94
|
Total Segment EBITDA
|
|
853
|
|
699
|
Corporate expense
and other items, net
|
|
(8)
|
|
1
|
Adjusted EBITDA
|
|
$
845
|
|
$
700
|
DANA INCORPORATED
|
|
|
|
|
Reconciliation of Segment and Adjusted EBITDA to Net
Loss (Unaudited)
|
|
|
|
|
For the Three Months Ended December 31, 2023 and
2022
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(In
millions)
|
|
December
31,
|
|
|
2023
|
|
2022
|
Segment EBITDA
|
|
$
160
|
|
$
175
|
Corporate expense and
other items, net
|
|
(4)
|
|
1
|
Adjusted EBITDA
|
|
156
|
|
176
|
Depreciation
|
|
(106)
|
|
(95)
|
Amortization
|
|
(6)
|
|
(6)
|
Non-service cost
components of pension and OPEB costs
|
|
(3)
|
|
(4)
|
Restructuring charges,
net
|
|
(4)
|
|
|
Stock compensation
expense
|
|
(7)
|
|
(6)
|
Strategic transaction
expenses
|
|
(1)
|
|
(2)
|
Distressed supplier
costs
|
|
(18)
|
|
|
Amounts attributable
to previously divested/closed operations
|
|
|
|
(2)
|
Other items
|
|
|
|
1
|
Earnings before
interest and income taxes
|
|
11
|
|
62
|
Interest
income
|
|
3
|
|
5
|
Interest
expense
|
|
40
|
|
33
|
Earnings (loss)
before income taxes
|
|
(26)
|
|
34
|
Income tax
expense
|
|
3
|
|
217
|
Equity in
earnings (loss) of affiliates
|
|
(15)
|
|
5
|
Net loss
|
|
$
(44)
|
|
$
(178)
|
DANA INCORPORATED
|
|
|
|
|
Reconciliation of Segment and Adjusted EBITDA to Net
Income (Loss)
|
|
|
|
|
For the Year Ended December 31, 2023 and
2022
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
(In
millions)
|
|
December
31,
|
|
|
2023
|
|
2022
|
Segment EBITDA
|
|
$
853
|
|
$
699
|
Corporate expense and
other items, net
|
|
(8)
|
|
1
|
Adjusted EBITDA
|
|
845
|
|
700
|
Depreciation
|
|
(393)
|
|
(365)
|
Amortization
|
|
(23)
|
|
(23)
|
Non-service cost
components of pension and OPEB costs
|
|
(13)
|
|
(7)
|
Restructuring charges,
net
|
|
(25)
|
|
1
|
Stock compensation
expense
|
|
(26)
|
|
(19)
|
Strategic transaction
expenses
|
|
(5)
|
|
(8)
|
Distressed supplier
costs
|
|
(44)
|
|
|
Amounts attributable
to previously divested/closed operations
|
|
|
|
(2)
|
Impairment of
goodwill
|
|
|
|
(191)
|
Earnings before
interest and income taxes
|
|
316
|
|
86
|
Loss on extinguishment
of debt
|
|
(1)
|
|
|
Interest
income
|
|
17
|
|
11
|
Interest
expense
|
|
154
|
|
128
|
Earnings (loss)
before income taxes
|
|
178
|
|
(31)
|
Income tax
expense
|
|
121
|
|
284
|
Equity in
earnings (loss) of affiliates
|
|
(9)
|
|
4
|
Net income (loss)
|
|
$
48
|
|
$
(311)
|
DANA INCORPORATED
|
|
|
|
|
Reconciliation of Net Loss Attributable to the Parent
Company to
|
|
|
|
|
Adjusted Net Loss Attributable to the Parent Company
and
|
|
|
|
|
Diluted Adjusted EPS
(Unaudited)
|
|
|
|
|
For the Three Months Ended December 31, 2023 and
2022
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
Net loss attributable to the parent
company
|
|
$
(39)
|
|
$
(179)
|
Items impacting
loss before income taxes:
|
|
|
|
|
|
Amortization
|
|
5
|
|
5
|
|
Restructuring
charges, net
|
|
3
|
|
|
|
Strategic
transaction expenses
|
|
1
|
|
|
|
Distressed
supplier costs
|
|
18
|
|
|
|
Other
items
|
|
(1)
|
|
2
|
Items impacting
income taxes:
|
|
|
|
|
|
Net income tax
benefit on items above
|
|
6
|
|
2
|
|
Income tax
expense (benefit) attributable to various discrete tax
matters
|
|
(4)
|
|
155
|
Adjusted net loss attributable to the parent
company
|
|
$
(11)
|
|
$
(15)
|
|
|
|
|
|
|
Diluted shares -
as reported
|
|
144.5
|
|
143.4
|
Adjusted diluted
shares
|
|
144.5
|
|
143.4
|
|
|
|
|
|
|
Diluted adjusted EPS
|
|
$
(0.08)
|
|
$
(0.10)
|
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 Year Ended December 31, 2023 and
2022
|
|
|
|
|
|
|
|
|
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
Net income (loss) attributable to the parent
company
|
|
$
38
|
|
$
(242)
|
Items impacting
income (loss) before income taxes:
|
|
|
|
|
|
Amortization
|
|
20
|
|
20
|
|
Restructuring
charges, net
|
|
24
|
|
(1)
|
|
Strategic
transaction expenses
|
|
5
|
|
8
|
|
Distressed
supplier costs
|
|
44
|
|
|
|
Impairment of
goodwill
|
|
|
|
118
|
|
Other
items
|
|
1
|
|
2
|
Items impacting
income taxes:
|
|
|
|
|
|
Net income tax
expense on items above
|
|
(20)
|
|
(8)
|
|
Income tax
expense attributable to various discrete tax matters
|
|
10
|
|
157
|
Adjusted net income attributable to the parent
company
|
|
$
122
|
|
$
54
|
|
|
|
|
|
|
Diluted shares -
as reported
|
|
144.6
|
|
143.6
|
Adjusted diluted
shares
|
|
144.6
|
|
144.3
|
|
|
|
|
|
|
Diluted adjusted EPS
|
|
$
0.84
|
|
$
0.37
|
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SOURCE Dana Incorporated