Dana Incorporated has announced financial results for the second quarter of 2023.
“Dana had another strong quarter, with sales of $2.75 billion and a 250-basis-point margin improvement,” said James Kamsickas, Dana chairman and chief executive officer.  “I am extremely proud of how the Dana team is executing across our operations, including a substantial number of launches for both electrified and traditional programs, as well as our ongoing transformation toward zero emissions. The challenging production environment has persisted, but we have positioned ourselves well to take advantage as supply chains and customer order patterns continue to stabilize. As a result, we expect our momentum to carry through the back half of the year as demand remains strong across each of our end markets.
Sales for the second quarter of 2023 totaled $2.75 billion, compared with $2.59 billion in the same period of 2022, representing a $162 million increase driven by higher market demand, cost-recovery actions, and conversion of our sales backlog, partially offset by the translation of foreign currencies.
Adjusted EBITDA for the second quarter of 2023 was $243 million, compared with $162 million for the same period in 2022. The 250 basis points of margin improvement in the second quarter of 2023 was primarily driven by higher sales volume, net customer pricing and recovery actions, and lower net commodity costs. These improvements were partially offset by production inefficiencies driven by volatile customer demand schedules and negative exchange-rate impacts.
Net income attributable to Dana was $30 million, or $0.21 per share, compared with net income of $8 million, or $0.06 per share, in the second quarter of 2022.
Adjusted net income attributable to Dana was $54 million, and diluted adjusted earnings per share were $0.37 for the second quarter of 2023, compared with adjusted net income of $12 million and $0.08 per share in 2022.
Cash flow from operations in the second quarter of 2023 were $256 million, compared with $257 million in the same period of 2022. Free cash flow was $134 million, compared with $167 million in the second quarter of 2022. The difference was due to higher capital spending for new business backlog.
“Strong demand, great execution, and improved market dynamics have allowed us to increase our full-year guidance for 2023,” said Timothy Kraus, Dana senior vice president and chief financial officer. “Throughout the second half of the year, we remain focused on delivering our program launch commitments, offsetting external cost increases, and continuing to win new business.”
The company has revised its 2023 financial targets and forecasts sales will reach $10.95 billion; adjusted EBITDA between $800 to $900 million, an implied adjusted EBITDA margin of approximately 7.9 percent at the midpoint of the range; operating cash flow of approximately $560 to $610 million; and free cash flow of $50 million to $100 million
Company Recognized for Sustainability, Employee Engagement
In the past two months, Dana earned recognition from USA Today as one of “America’s Climate Leaders 2023” for its focus on sustainability and from Newsweek magazine as one of “America’s Greatest Workplaces 2023” for its commitment to its people.
