Dana Incorporated disclosed its financial outcomes for the fourth quarter and full-year 2023 on Tuesday. Despite an overall positive trajectory, fourth-quarter results revealed a decline in sales from $2.6 billion in 2022 to $2.5 billion in 2023. This downturn was primarily attributed to the impact of the UAW strike on Dana’s Light Vehicle Driveline segment, although partially offset by cost-recovery measures and backlog conversions.
“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 CEO of Dana.
“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.”
For Q4 2023, adjusted EBITDA stood at $156 million, down from $176 million in the same period of 2022. The decrease was mitigated by efficiency improvements, although impacted by the UAW strike and heightened spending on electric-vehicle product development.
The net loss attributable to Dana for the fourth quarter of 2023 was $39 million, or $0.27 per share, compared with a net loss of $179 million, or $1.25 per share, in the same period of 2022. The adjusted net loss for the fourth quarter of 2023 was $11 million, or $0.08 per share, compared with an adjusted net loss of $15 million, or $0.10 earnings per share, in 2022.
For the full-year 2023, Dana reported sales of $10.6 billion, up from $10.2 billion in 2022. Adjusted EBITDA for 2023 was $845 million, compared with $700 million in 2022, driven by program launches, efficiency improvements and stabilized customer order patterns.
Timothy Kraus, Dana’s senior vice president and CFO, expressed optimism for 2024, projecting another record sales year, improved margins, and higher free cash flow. The company set financial targets for 2024, including sales of $10.65 to $11.15 billion, adjusted EBITDA of $875 to $975 million, operating cash flow of approximately $475 to $525 million, and free cash flow of $25 to $75 million, with diluted EPS projected at $0.35 to $0.85.
Dana will host a conference call on Tuesday, Feb. 20, at 10 a.m. EST to discuss its fourth-quarter and full-year results. The call can be accessed via telephone or online streaming through the Dana investor website.
