Dana Incorporated recently announced financial results for the third quarter of 2019.
“Despite the rapid onset of high volatility in our heavy-vehicle markets, Dana again achieved record sales in the third quarter, resulting in our 12th consecutive quarter of year-over-year sales growth. This continued growth trend is being driven by exceptional customer satisfaction and execution of our strong new business backlog, in addition to our recent acquisitions,” said James Kamsickas, Dana president and CEO. “As our recent announcement of new electrification business highlights, Dana’s disciplined strategy to fill out our e-Powertrain portfolio to offer our customers a complete range of solutions for the quickly evolving mobility market is providing immediate benefits to our net new business backlog.”
3rd Quarter 2019 Financial Results
Sales for the third quarter of 2019 totaled $2.16 billion, compared with $1.98 billion in the same period of 2018, representing a $186 million improvement. The increase was attributable to the benefit of recent acquisitions and backlog conversion, partially offset by lower end-market demand for heavy vehicles and unfavorable currency translation.
Dana reported a net income of $111 million for the third quarter of 2019, compared with net income of $95 million in the same period of 2018. The improvement was primarily due to lower tax expenses offsetting higher interest expense and one-time costs related to acquisitions.
Reported diluted earnings per share were $0.77, compared with diluted earnings per share of $0.65 in the third quarter of 2018.
Adjusted EBITDA for the third quarter of 2019 was $250 million, compared with $240 million for the same period last year. Profit in the third quarter of 2019 benefited from both organic and inorganic growth, partially offset by higher commodity costs and the impact of unfavorable currency translation related to the strengthening of the U.S. dollar. Diluted adjusted earnings per share were $0.74 in the third quarter of 2019, compared with $0.77 in the same period last year. The lower year-over-year comparison was primarily due to higher depreciation and interest expenses offsetting higher operating earnings.
Operating cash flow in the third quarter of 2019 was $231 million,
compared with $124 million in
the same period of 2018.
Adjusted free cash flow was $125 million, compared with $34 million in the third quarter of 2018. Higher earnings combined with lower cash taxes and working capital requirements more than offset elevated investment to support new program launches.