Dana Incorporated Reports 2024 Second-Quarter Financial Results with Increased Adjusted EBITDA and Adjusted EBITDA Margin, Raises Full-Year Free Cash Flow Guidance
Dana Incorporated (NYSE: DAN) reported its 2024 Q2 financial results, showing improved performance despite market challenges. Sales totaled $2.74 billion, slightly down from $2.75 billion in Q2 2023. Adjusted EBITDA increased to $244 million (8.9% of sales), up from $243 million (8.8% of sales) in Q2 2023. Net income was $16 million ($0.11 per share), compared to $30 million ($0.21 per share) in Q2 2023.
Dana raised its full-year free cash flow guidance to $100 million, with Q2 free cash flow at $104 million. The company maintained its Adjusted EBITDA guidance while lowering sales outlook due to weakening demand in electric vehicles and traditional markets. Dana's revised 2024 financial targets include sales of $10.45 to $10.95 billion and Adjusted EBITDA of $875 to $975 million.
Dana Incorporated (NYSE: DAN) ha riportato i risultati finanziari del secondo trimestre del 2024, mostrando un miglioramento delle performance nonostante le sfide del mercato. Le vendite hanno raggiunto i 2,74 miliardi di dollari, leggermente in calo rispetto ai 2,75 miliardi del secondo trimestre del 2023. Il EBITDA rettificato è aumentato a 244 milioni di dollari (8,9% delle vendite), rispetto ai 243 milioni di dollari (8,8% delle vendite) del secondo trimestre del 2023. Il reddito netto è stato di 16 milioni di dollari (0,11 dollari per azione), rispetto ai 30 milioni di dollari (0,21 dollari per azione) del secondo trimestre del 2023.
Dana ha elevato la propria guida sul flusso di cassa libero per l'intero anno a 100 milioni di dollari, con un flusso di cassa libero nel secondo trimestre pari a 104 milioni di dollari. L'azienda ha mantenuto la propria guida sull'EBITDA rettificato, abbassando però le previsioni sulle vendite a causa del calo della domanda nei veicoli elettrici e nei mercati tradizionali. Gli obiettivi finanziari rivisti per il 2024 di Dana comprendono vendite tra 10,45 e 10,95 miliardi di dollari e un EBITDA rettificato tra 875 e 975 milioni di dollari.
Dana Incorporated (NYSE: DAN) anunció sus resultados financieros del segundo trimestre de 2024, mostrando una mejora en el desempeño a pesar de los desafíos del mercado. Las ventas totalizaron 2,74 mil millones de dólares, ligeramente por debajo de los 2,75 mil millones del segundo trimestre de 2023. El EBITDA ajustado aumentó a 244 millones de dólares (8,9% de las ventas), en comparación con los 243 millones de dólares (8,8% de las ventas) en el segundo trimestre de 2023. El ingreso neto fue de 16 millones de dólares (0,11 dólares por acción), en comparación con los 30 millones de dólares (0,21 dólares por acción) en el segundo trimestre de 2023.
Dana elevó su guía de flujo de caja libre para todo el año a 100 millones de dólares, con un flujo de caja libre en el segundo trimestre de 104 millones de dólares. La empresa mantuvo su guía de EBITDA ajustado mientras reducía su perspectiva de ventas debido al debilitamiento de la demanda en vehículos eléctricos y mercados tradicionales. Los objetivos financieros revisados para 2024 de Dana incluyen ventas de entre 10,45 y 10,95 mil millones de dólares y un EBITDA ajustado de entre 875 y 975 millones de dólares.
다나 주식회사 (NYSE: DAN)가 2024년 2분기 재무 결과를 발표하였으며, 시장의 도전 과제에도 불구하고 성과가 개선되었음을 보여주고 있습니다. 매출 총액은 27억 4천만 달러로, 2023년 2분기의 27억 5천만 달러에서 소폭 감소했습니다. 조정된 EBITDA는 2억 4천4백만 달러로 증가했습니다 (매출의 8.9%), 2023년 2분기의 2억 4천3백만 달러(매출의 8.8%)에서 증가한 수치입니다. 순이익은 1천6백만 달러였습니다 (주당 0.11달러), 2023년 2분기의 3천만 달러(주당 0.21달러)와 비교됩니다.
다나는 연간 무료 현금 흐름 가이드를 1억 달러로 상향 조정했으며, 2분기의 무료 현금 흐름은 1억 4천만 달러로 보고되었습니다. 회사는 조정 EBITDA 가이드를 유지하면서 전기차 및 전통 시장에서의 수요 약세로 인해 매출 전망은 하향 조정했습니다. 다나의 수정된 2024년 재무 목표에는 10억 4,500만 달러에서 10억 9,500만 달러 사이의 매출과 8억 7천5백만 달러에서 9억 7천5백만 달러 사이의 조정 EBITDA가 포함됩니다.
Dana Incorporated (NYSE: DAN) a publié ses résultats financiers pour le deuxième trimestre de 2024, montrant une amélioration de la performance malgré les défis du marché. Les ventes ont atteint 2,74 milliards de dollars, légèrement en baisse par rapport à 2,75 milliards de dollars au deuxième trimestre de 2023. Le chiffre d'affaires ajusté a augmenté à 244 millions de dollars (8,9% des ventes), en hausse par rapport aux 243 millions de dollars (8,8% des ventes) du deuxième trimestre de 2023. Le revenu net était de 16 millions de dollars (0,11 dollar par action), comparé à 30 millions de dollars (0,21 dollar par action) au deuxième trimestre de 2023.
Dana a relevé ses prévisions de flux de trésorerie libre pour l'année à 100 millions de dollars, avec un flux de trésorerie libre au deuxième trimestre de 104 millions de dollars. L'entreprise a maintenu ses prévisions d'EBITDA ajusté tout en abaissant ses prévisions de ventes en raison d'une demande en baisse dans les véhicules électriques et les marchés traditionnels. Les objectifs financiers révisés de Dana pour 2024 incluent un chiffre d'affaires compris entre 10,45 et 10,95 milliards de dollars et un EBITDA ajusté compris entre 875 et 975 millions de dollars.
Dana Incorporated (NYSE: DAN) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht, die eine verbesserte Leistung trotz der Herausforderungen auf dem Markt zeigen. Der Umsatz belief sich auf 2,74 Milliarden Dollar, was leicht unter den 2,75 Milliarden Dollar im zweiten Quartal 2023 liegt. Das bereinigte EBITDA stieg auf 244 Millionen Dollar (8,9% des Umsatzes), gegenüber 243 Millionen Dollar (8,8% des Umsatzes) im zweiten Quartal 2023. Der Nettogewinn betrug 16 Millionen Dollar (0,11 Dollar pro Aktie), verglichen mit 30 Millionen Dollar (0,21 Dollar pro Aktie) im zweiten Quartal 2023.
Dana hat die Prognose für den freien Cashflow des gesamten Jahres auf 100 Millionen Dollar angehoben, wobei der freie Cashflow im zweiten Quartal 104 Millionen Dollar betrug. Das Unternehmen hielt seine Prognose für das bereinigte EBITDA bei, senkte jedoch die Umsatzprognose aufgrund der schwachen Nachfrage nach Elektrofahrzeugen und traditionellen Märkten. Die revidierten finanziellen Ziele für 2024 von Dana umfassen einen Umsatz von 10,45 bis 10,95 Milliarden Dollar und ein bereinigtes EBITDA von 875 bis 975 Millionen Dollar.
- Adjusted EBITDA increased to $244 million, up $1 million from Q2 2023
- Adjusted EBITDA margin improved to 8.9%, a 10-basis-point increase year-over-year
- Free cash flow guidance for full-year 2024 raised to $100 million
- Company-wide efficiency improvements offsetting inflation and EV development costs
- Net income decreased to $16 million from $30 million in Q2 2023
- Sales slightly decreased to $2.74 billion from $2.75 billion in Q2 2023
- Lowered sales outlook due to weakening demand for electric vehicles and in traditional markets
- Free cash flow of $104 million in Q2 2024, $30 million lower than Q2 2023
Dana Incorporated's Q2 2024 results present a mixed picture with some positive developments amid challenges. The company reported sales of
- Adjusted EBITDA increased to
$244 million (8.9% margin), up from$243 million (8.8% margin) year-over-year. - Free cash flow reached
$104 million , although$30 million lower than Q2 2023 due to timing of working capital requirements.
The company's ability to maintain profitability despite inflationary pressures and EV development costs is noteworthy. However, the drop in net income to
Dana's revised 2024 guidance reflects both optimism and caution. While lowering sales expectations due to weakening EV demand and traditional markets, the company maintains its Adjusted EBITDA guidance and raises free cash flow projections. This suggests confidence in cost management and production efficiencies.
Investors should monitor Dana's ability to navigate the transition to EVs while maintaining profitability in traditional markets. The company's focus on a flexible cost structure and efficiency improvements could be key to its performance in a volatile demand environment.
Dana's Q2 results reflect the broader challenges facing the automotive industry, particularly in the electric vehicle (EV) sector. The company's acknowledgment of "weakening demand for electric vehicles" is a significant indicator of the current market dynamics. This aligns with recent industry trends where EV adoption rates have not met some of the more optimistic projections.
However, Dana's strategy of supporting "internal combustion, hybrid and electric-vehicle propulsion technologies across all mobility markets" demonstrates a pragmatic approach to the evolving automotive landscape. This diversification could prove important in navigating market uncertainties.
The company's ability to maintain profitability while investing in future technologies is commendable. The
Looking ahead, Dana's revised guidance, which maintains Adjusted EBITDA targets while lowering sales expectations, indicates confidence in operational efficiency. However, the reduction in sales forecast also signals potential headwinds in both EV and traditional markets.
For investors, Dana's performance underscores the importance of companies that can balance current market demands with future technology investments. The automotive supply chain is likely to remain volatile and Dana's focus on a flexible cost structure could be a key differentiator in this challenging environment.
- Sales of
$2.74 billion - Net income of
$16 million - Adjusted EBITDA of
$244 million $1 million - Adjusted EBITDA margin of 8.9 percent, a 10-basis-point improvement compared with 2023
- Free cash flow of
$104 million - Full-year free cash flow guidance increased to
$100 million
"In the second quarter, Dana's strong end-to-end execution delivered steady profit and improved margin despite continued future program development costs," said James Kamsickas, Chairman and Chief Executive Officer.
"The Dana team continues to successfully achieve efficiencies while optimizing asset management by leveraging advanced core processes and systems across the company. As we look forward, our more flexible cost structure can better adjust to demand volatility as we support internal combustion, hybrid, and electric-vehicle propulsion technologies across all mobility markets."
Sales for the second quarter of 2024 totaled
Adjusted EBITDA for the second quarter of 2024 was
Net income attributable to Dana was
Adjusted net income attributable to Dana was
Operating cash flow in the second quarter of 2024 was
"While our outlook for sales is lower due to weakening demand for electric vehicles and in some of our traditional markets, Dana is maintaining guidance for Adjusted EBITDA, while raising profit margin and again increasing the free-cash-flow range," said Timothy Kraus, Senior Vice President and Chief Financial Officer. "As we look to the second half of the year, we anticipate company-wide cost management and production efficiencies will continue to offset the impact of softer end-market demand, and lower capital requirements will drive higher free cash flow."
Revised 2024 Financial Targets
- Sales of
$10.45 $10.95 billion - Adjusted EBITDA of
$875 $975 million - Operating cash flow of approximately
$500 $550 million - Free cash flow of
$75 $125 million - Diluted EPS of
$0.35 $0.85 - Diluted Adjusted EPS of
$0.80 $1.30
Dana to Host Conference Call at 9 a.m., Wednesday, July 31
Dana will discuss its second-quarter results in a conference call at 9 a.m. EDT on Wednesday, July 31. 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 8:30 a.m. EDT.
A webcast replay can be accessed via Dana's investor website following the call.
Non-GAAP Financial Measures
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 (loss) 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
DANA INCORPORATED | |||||
Consolidated Statement of Operations (Unaudited) | |||||
For the Three Months Ended June 30, 2024 and 2023 | |||||
Three Months Ended | |||||
(In millions, except per share amounts) | June 30, | ||||
2024 | 2023 | ||||
Net sales | $ 2,738 | $ 2,748 | |||
Costs and expenses | |||||
Cost of sales | 2,483 | 2,477 | |||
Selling, general and administrative expenses | 132 | 144 | |||
Amortization of intangibles | 4 | 4 | |||
Restructuring charges, net | 12 | 3 | |||
Loss on disposal group held for sale | (1) | ||||
Other income (expense), net | (2) | 4 | |||
Earnings before interest and income taxes | 104 | 124 | |||
Loss on extinguishment of debt | - | (1) | |||
Interest income | 2 | 5 | |||
Interest expense | 39 | 39 | |||
Earnings before income taxes | 67 | 89 | |||
Income tax expense | 54 | 55 | |||
Equity in earnings of affiliates | 3 | 2 | |||
Net income | 16 | 36 | |||
Less: Noncontrolling interests net income | 5 | 5 | |||
Less: Redeemable noncontrolling interests net income (loss) | (5) | 1 | |||
Net income attributable to the parent company | $ 16 | $ 30 | |||
Net income per share available to common stockholders | |||||
Basic | $ 0.11 | $ 0.21 | |||
Diluted | $ 0.11 | $ 0.21 | |||
Weighted-average shares outstanding - Basic | 145.0 | 144.3 | |||
Weighted-average shares outstanding - Diluted | 145.1 | 144.4 | |||
DANA INCORPORATED | |||||
Consolidated Statement of Operations (Unaudited) | |||||
For the Six Months Ended June 30, 2024 and 2023 | |||||
Six Months Ended | |||||
(In millions, except per share amounts) | June 30, | ||||
2024 | 2023 | ||||
Net sales | $ 5,473 | $ 5,392 | |||
Costs and expenses | |||||
Cost of sales | 4,974 | 4,892 | |||
Selling, general and administrative expenses | 271 | 284 | |||
Amortization of intangibles | 7 | 7 | |||
Restructuring charges, net | 17 | 4 | |||
Loss on disposal group held for sale | (30) | ||||
Other income (expense), net | 9 | ||||
Earnings before interest and income taxes | 174 | 214 | |||
Loss on extinguishment of debt | (1) | ||||
Interest income | 6 | 9 | |||
Interest expense | 78 | 73 | |||
Earnings before income taxes | 102 | 149 | |||
Income tax expense | 91 | 85 | |||
Equity in earnings of affiliates | 5 | 3 | |||
Net income | 16 | 67 | |||
Less: Noncontrolling interests net income | 10 | 9 | |||
Less: Redeemable noncontrolling interests net loss | (13) | ||||
Net income attributable to the parent company | $ 19 | $ 58 | |||
Net income per share available to common stockholders | |||||
Basic | $ 0.13 | $ 0.40 | |||
Diluted | $ 0.13 | $ 0.40 | |||
Weighted-average shares outstanding - Basic | 144.9 | 144.1 | |||
Weighted-average shares outstanding - Diluted | 144.9 | 144.3 | |||
DANA INCORPORATED | |||||||
Consolidated Statement of Comprehensive Income (Unaudited) | |||||||
For the Three Months Ended June 30, 2024 and 2023 | |||||||
Three Months Ended | |||||||
(In millions) | June 30, | ||||||
2024 | 2023 | ||||||
Net income | $ 16 | $ 36 | |||||
Other comprehensive income (loss), net of tax: | |||||||
Currency translation adjustments | (46) | (7) | |||||
Hedging gains and losses | (26) | 3 | |||||
Defined benefit plans | 4 | ||||||
Other comprehensive loss | (68) | (4) | |||||
Total comprehensive income (loss) | (52) | 32 | |||||
Less: Comprehensive income attributable to noncontrolling interests | (5) | (5) | |||||
Less: Comprehensive loss attributable to redeemable noncontrolling interests | 6 | - | |||||
Comprehensive income (loss) attributable to the parent company | $ (51) | $ 27 | |||||
DANA INCORPORATED | |||||||
Consolidated Statement of Comprehensive Income (Unaudited) | |||||||
For the Six Months Ended June 30, 2024 and 2023 | |||||||
Six Months Ended | |||||||
(In millions) | June 30, | ||||||
2024 | 2023 | ||||||
Net income | $ 16 | $ 67 | |||||
Other comprehensive income (loss), net of tax: | |||||||
Currency translation adjustments | (66) | 18 | |||||
Hedging gains and losses | (28) | 18 | |||||
Defined benefit plans | 5 | 1 | |||||
Other comprehensive income (loss) | (89) | 37 | |||||
Total comprehensive income (loss) | (73) | 104 | |||||
Less: Comprehensive income attributable to noncontrolling interests | (9) | (9) | |||||
Less: Comprehensive loss attributable to redeemable noncontrolling interests | 17 | ||||||
Comprehensive income (loss) attributable to the parent company | $ (65) | $ 95 | |||||
DANA INCORPORATED | ||||||
Consolidated Balance Sheet (Unaudited) | ||||||
As of June 30, 2024 and December 31, 2023 | ||||||
(In millions, except share and per share amounts) | June 30, | December 31, | ||||
2024 | 2023 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ 419 | $ 529 | ||||
Accounts receivable | ||||||
Trade, less allowance for doubtful accounts of | 1,501 | 1,371 | ||||
Other | 240 | 280 | ||||
Inventories | 1,602 | 1,676 | ||||
Other current assets | 253 | 247 | ||||
Current assets of disposal group held for sale | 61 | |||||
Total current assets | 4,076 | 4,103 | ||||
Goodwill | 256 | 263 | ||||
Intangibles | 163 | 182 | ||||
Deferred tax assets | 499 | 516 | ||||
Other noncurrent assets | 171 | 140 | ||||
Investments in affiliates | 123 | 123 | ||||
Operating lease assets | 300 | 327 | ||||
Property, plant and equipment, net | 2,220 | 2,311 | ||||
Total assets | $ 7,808 | $ 7,965 | ||||
Liabilities, redeemable noncontrolling interests and equity | ||||||
Current liabilities | ||||||
Short-term debt | $ 19 | $ 22 | ||||
Current portion of long-term debt | 211 | 35 | ||||
Accounts payable | 1,767 | 1,756 | ||||
Accrued payroll and employee benefits | 247 | 288 | ||||
Taxes on income | 84 | 86 | ||||
Current portion of operating lease liabilities | 42 | 42 | ||||
Other accrued liabilities | 367 | 373 | ||||
Current liabilities of disposal group held for sale | 21 | |||||
Total current liabilities | 2,758 | 2,602 | ||||
Long-term debt, less debt issuance costs of | 2,386 | 2,598 | ||||
Noncurrent operating lease liabilities | 262 | 284 | ||||
Pension and postretirement obligations | 311 | 334 | ||||
Other noncurrent liabilities | 338 | 319 | ||||
Noncurrent liabilities of disposal group held for sale | 4 | |||||
Total liabilities | 6,059 | 6,137 | ||||
Commitments and contingencies | ||||||
Redeemable noncontrolling interests | 205 | 191 | ||||
Parent company stockholders' equity | ||||||
Preferred stock, 50,000,000 shares authorized, | ||||||
no shares outstanding | - | - | ||||
Common stock, 450,000,000 shares authorized, | ||||||
144,975,329 and 144,386,484 shares outstanding | 2 | 2 | ||||
Additional paid-in capital | 2,267 | 2,255 | ||||
Retained earnings | 293 | 317 | ||||
Treasury stock, at cost (829,822 and 474,981 shares) | (13) | (9) | ||||
Accumulated other comprehensive loss | (1,074) | (990) | ||||
Total parent company stockholders' equity | 1,475 | 1,575 | ||||
Noncontrolling interests | 69 | 62 | ||||
Total equity | 1,544 | 1,637 | ||||
Total liabilities, redeemable noncontrolling interests and equity | $ 7,808 | $ 7,965 | ||||
DANA INCORPORATED | |||||
Consolidated Statement of Cash Flows (Unaudited) | |||||
For the Three Months Ended June 30, 2024 and 2023 | |||||
Three Months Ended | |||||
(In millions) | June 30, | ||||
2024 | 2023 | ||||
Operating activities | |||||
Net income | $ 16 | $ 36 | |||
Depreciation | 106 | 94 | |||
Amortization | 6 | 6 | |||
Amortization of deferred financing charges | 2 | 2 | |||
Write-off of deferred financing costs | 1 | ||||
Earnings of affiliates, net of dividends received | (1) | (2) | |||
Stock compensation expense | 8 | 8 | |||
Deferred income taxes | 27 | (22) | |||
Pension expense, net | 3 | 2 | |||
Change in working capital | 56 | 132 | |||
Loss on disposal group held for sale | 1 | ||||
Other, net | (9) | (1) | |||
Net cash provided by operating activities | 215 | 256 | |||
Investing activities | |||||
Purchases of property, plant and equipment | (111) | (122) | |||
Settlements of undesignated derivatives | (3) | (4) | |||
Other, net | (1) | ||||
Net cash used in investing activities | (114) | (127) | |||
Financing activities | |||||
Net change in short-term debt | (21) | (286) | |||
Proceeds from long-term debt | 458 | ||||
Repayment of long-term debt | (3) | (202) | |||
Deferred financing payments | (7) | ||||
Dividends paid to common stockholders | (14) | (14) | |||
Distributions to noncontrolling interests | (2) | (2) | |||
Contributions from redeemable noncontrolling interests | 9 | 7 | |||
Net cash used in financing activities | (31) | (46) | |||
Net increase in cash, cash equivalents and restricted cash | 70 | 83 | |||
Cash, cash equivalents and restricted cash − beginning of period | 387 | 419 | |||
Effect of exchange rate changes on cash balances | (17) | 1 | |||
Cash, cash equivalents and restricted cash − end of period | $ 440 | $ 503 | |||
DANA INCORPORATED | |||||
Consolidated Statement of Cash Flows (Unaudited) | |||||
For the Six Months Ended June 30, 2024 and 2023 | |||||
Six Months Ended | |||||
(In millions) | June 30, | ||||
2024 | 2023 | ||||
Operating activities | |||||
Net income | $ 16 | $ 67 | |||
Depreciation | 207 | 186 | |||
Amortization | 11 | 11 | |||
Amortization of deferred financing charges | 3 | 3 | |||
Write-off of deferred financing costs | 1 | ||||
Earnings of affiliates, net of dividends received | (3) | (3) | |||
Stock compensation expense | 14 | 14 | |||
Deferred income taxes | 29 | (30) | |||
Pension expense, net | (4) | 2 | |||
Change in working capital | (195) | (172) | |||
Loss on disposal group held for sale | 30 | ||||
Other, net | 5 | 7 | |||
Net cash provided by operating activities | 113 | 86 | |||
Investing activities | |||||
Purchases of property, plant and equipment | (181) | (242) | |||
Proceeds from sale of property, plant and equipment | 4 | 2 | |||
Settlements of undesignated derivatives | (4) | (4) | |||
Other, net | 4 | (1) | |||
Net cash used in investing activities | (177) | (245) | |||
Financing activities | |||||
Net change in short-term debt | (4) | (17) | |||
Proceeds from long-term debt | 458 | ||||
Repayment of long-term debt | (30) | (204) | |||
Deferred financing payments | (9) | ||||
Dividends paid to common stockholders | (29) | (29) | |||
Distributions to noncontrolling interests | (5) | (3) | |||
Collection of note receivable from noncontrolling interest | 11 | ||||
Contributions from redeemable noncontrolling interests | 18 | 17 | |||
Other, net | 9 | (4) | |||
Net cash provided by (used in) financing activities | (30) | 209 | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | (94) | 50 | |||
Cash, cash equivalents and restricted cash − beginning of period | 563 | 442 | |||
Effect of exchange rate changes on cash balances | (29) | 11 | |||
Cash, cash equivalents and restricted cash − end of period | $ 440 | $ 503 | |||
DANA INCORPORATED | |||||
Reconciliation of Net Cash Provided By Operating Activities to | |||||
Free Cash Flow (Unaudited) | |||||
Three Months Ended | |||||
(In millions) | June 30, | ||||
2024 | 2023 | ||||
Net cash provided by operating activities | $ 215 | $ 256 | |||
Purchases of property, plant and equipment | (111) | (122) | |||
Free cash flow | $ 104 | $ 134 | |||
Six Months Ended | |||||
(In millions) | June 30, | ||||
2024 | 2023 | ||||
Net cash provided by operating activities | $ 113 | $ 86 | |||
Purchases of property, plant and equipment | (181) | (242) | |||
Free cash flow | $ (68) | $ (156) | |||
DANA INCORPORATED | ||||
Segment Sales and Segment EBITDA (Unaudited) | ||||
For the Three Months Ended June 30, 2024 and 2023 | ||||
Three Months Ended | ||||
(In millions) | June 30, | |||
2024 | 2023 | |||
Sales | ||||
Light Vehicle | $ 1,132 | $ 1,066 | ||
Commercial Vehicle | 527 | 526 | ||
Off-Highway | 746 | 842 | ||
Power Technologies | 333 | 314 | ||
Total Sales | $ 2,738 | $ 2,748 | ||
Segment EBITDA | ||||
Light Vehicle | $ 84 | $ 66 | ||
Commercial Vehicle | 23 | 28 | ||
Off-Highway | 116 | 131 | ||
Power Technologies | 22 | 19 | ||
Total Segment EBITDA | 245 | 244 | ||
Corporate expense and other items, net | (1) | (1) | ||
Adjusted EBITDA | $ 244 | $ 243 | ||
DANA INCORPORATED | ||||
Segment Sales and Segment EBITDA (Unaudited) | ||||
For the Six Months Ended June 30, 2024 and 2023 | ||||
Six Months Ended | ||||
(In millions) | June 30, | |||
2024 | 2023 | |||
Sales | ||||
Light Vehicle | $ 2,230 | $ 2,028 | ||
Commercial Vehicle | 1,051 | 1,048 | ||
Off-Highway | 1,527 | 1,684 | ||
Power Technologies | 665 | 632 | ||
Total Sales | $ 5,473 | $ 5,392 | ||
Segment EBITDA | ||||
Light Vehicle | $ 151 | $ 115 | ||
Commercial Vehicle | 40 | 45 | ||
Off-Highway | 231 | 249 | ||
Power Technologies | 49 | 42 | ||
Total Segment EBITDA | 471 | 451 | ||
Corporate expense and other items, net | (4) | (4) | ||
Adjusted EBITDA | $ 467 | $ 447 | ||
DANA INCORPORATED | ||||
Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) | ||||
For the Three Months Ended June 30, 2024 and 2023 | ||||
Three Months Ended | ||||
(In millions) | June 30, | |||
2024 | 2023 | |||
Segment EBITDA | $ 245 | $ 244 | ||
Corporate expense and other items, net | (1) | (1) | ||
Adjusted EBITDA | 244 | 243 | ||
Depreciation | (106) | (94) | ||
Amortization | (6) | (6) | ||
Non-service cost components of pension and OPEB costs | (2) | (3) | ||
Restructuring charges, net | (12) | (3) | ||
Stock compensation expense | (8) | (8) | ||
Strategic transaction expenses | (2) | (1) | ||
Distressed supplier costs | (4) | |||
Loss on disposal group held for sale | (1) | |||
Other items | (3) | |||
Earnings before interest and income taxes | 104 | 124 | ||
Loss on extinguishment of debt | (1) | |||
Interest income | 2 | 5 | ||
Interest expense | 39 | 39 | ||
Earnings before income taxes | 67 | 89 | ||
Income tax expense | 54 | 55 | ||
Equity in earnings of affiliates | 3 | 2 | ||
Net income | $ 16 | $ 36 | ||
DANA INCORPORATED | ||||
Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) | ||||
For the Six Months Ended June 30, 2024 and 2023 | ||||
Six Months Ended | ||||
(In millions) | June 30, | |||
2024 | 2023 | |||
Segment EBITDA | $ 471 | $ 451 | ||
Corporate expense and other items, net | (4) | (4) | ||
Adjusted EBITDA | 467 | 447 | ||
Depreciation | (207) | (186) | ||
Amortization | (11) | (11) | ||
Non-service cost components of pension and OPEB costs | (6) | (6) | ||
Restructuring charges, net | (17) | (4) | ||
Stock compensation expense | (14) | (14) | ||
Strategic transaction expenses | (4) | (2) | ||
Distressed supplier costs | (12) | |||
Loss on disposal group held for sale | (30) | |||
Other items | (4) | 2 | ||
Earnings before interest and income taxes | 174 | 214 | ||
Loss on extinguishment of debt | (1) | |||
Interest income | 6 | 9 | ||
Interest expense | 78 | 73 | ||
Earnings before income taxes | 102 | 149 | ||
Income tax expense | 91 | 85 | ||
Equity in earnings of affiliates | 5 | 3 | ||
Net income | $ 16 | $ 67 | ||
DANA INCORPORATED | |||||
Reconciliation of Net Income Attributable to the Parent Company to | |||||
Adjusted Net Income Attributable to the Parent Company and | |||||
Diluted Adjusted EPS (Unaudited) | |||||
For the Three Months Ended June 30, 2024 and 2023 | |||||
(In millions, except per share amounts) | |||||
Three Months Ended | |||||
June 30, | |||||
2024 | 2023 | ||||
Net income attributable to the parent company | $ 16 | $ 30 | |||
Items impacting income before income taxes: | |||||
Amortization | 5 | 5 | |||
Restructuring charges, net | 12 | 3 | |||
Strategic transaction expenses | 2 | 1 | |||
Distressed supplier costs | 4 | ||||
Loss on disposal group held for sale | 1 | ||||
Other items | 1 | ||||
Items impacting income taxes: | |||||
Net income tax expense on items above | (6) | (4) | |||
Income tax expense attributable to various discrete tax matters | 15 | 14 | |||
Adjusted net income attributable to the parent company | $ 45 | $ 54 | |||
Diluted shares - as reported | 145.1 | 144.4 | |||
Adjusted diluted shares | 145.1 | 144.4 | |||
Diluted adjusted EPS | $ 0.31 | $ 0.37 | |||
DANA INCORPORATED | |||||
Reconciliation of Net Income Attributable to the Parent Company to | |||||
Adjusted Net Income Attributable to the Parent Company and | |||||
Diluted Adjusted EPS (Unaudited) | |||||
For the Six Months Ended June 30, 2024 and 2023 | |||||
(In millions, except per share amounts) | |||||
Six Months Ended | |||||
June 30, | |||||
2024 | 2023 | ||||
Net income attributable to the parent company | $ 19 | $ 58 | |||
Items impacting income before income taxes: | |||||
Amortization | 10 | 10 | |||
Restructuring charges, net | 17 | 4 | |||
Strategic transaction expenses | 4 | 2 | |||
Distressed supplier costs | 12 | ||||
Loss on disposal group held for sale | 30 | ||||
Other items | (3) | ||||
Items impacting income taxes: | |||||
Net income tax expense on items above | (19) | (10) | |||
Income tax expense attributable to various discrete tax matters | 24 | 14 | |||
Adjusted net income attributable to the parent company | $ 82 | $ 90 | |||
Diluted shares - as reported | 144.9 | 144.3 | |||
Adjusted diluted shares | 144.9 | 144.3 | |||
Diluted adjusted EPS | $ 0.57 | $ 0.62 | |||
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SOURCE Dana Incorporated
FAQ
What were Dana's Q2 2024 sales and how do they compare to Q2 2023?
How did Dana's Adjusted EBITDA perform in Q2 2024?
What is Dana's revised free cash flow guidance for 2024?
How has Dana's net income changed compared to Q2 2023?
