Dana Inc. has announced financial results for the first quarter of 2017.
Sales for the first quarter of 2017 totaled $1.7 billion, compared with $1.45 billion in the same period of 2016, representing a 17 percent increase. The increase was largely due to new business gains, higher end-market demand in global light-truck markets, and improved demand in global off-highway end markets. Currency was a slight headwind of $6 million due to the relative strength of the U.S. dollar against the euro, British pound and Mexican peso, partially offset by a stronger Brazilian real. The impact of acquisitions added $80 million in sales compared with the prior year.
Net income attributable to Dana for the first quarter was $75 million, compared with $45 million in the same period last year. The company said net income benefited from increased adjusted EBITDA of $57 million, which was partially offset by higher transaction costs attributable to acquisitions completed in this year’s first quarter, depreciation and amortization expense, and income taxes. Reported diluted earnings per share were 51 cents in the first quarter, compared with 30 cents in 2016.
“Dana is off to a good start this year as we successfully launch new programs across end markets and continue to convert our sales backlog. The results this quarter are further evidence of our ability to successfully operate and leverage our cost base during rapid volume and revenue expansion,” said James Kamsickas, Dana president and CEO. “In addition, the targeted and timely acquisitions of Brevini and the U.S. Manufacturing Corp. (USM) facility directly align with Dana’s enterprise strategy as they both strengthen our technology portfolio and expand our market reach.”
Diluted adjusted earnings per share in the first quarter of 2017 were 63 cents, compared with 34 cents in the same period last year, primarily driven by the year-over-year earnings improvement.
2017 Full-Year Financial Targets
Dana has affirmed key financial guidance. With the completion of the USM acquisition, full-year 2017 results are expected to be at the higher end of the guidance ranges with the exception of cash flow, due to the above-mentioned settlement of trade payables related to the USM acquisition, including:
- Sales of $6.2 to $6.4 billion
- Adjusted EBITDA of $695 to $725 million
- Adjusted EBITDA as a percent of sales of 11.2 to 11.4 percent
- Diluted adjusted EPS of $1.60 to $1.80
- Cash flow from operations of $410 to $450 million
- Capital spending of $350 to $370 million
- Free cash flow of $50 to $90 million
