Dana Inc. has announced strong financial results for the third quarter of 2022.
“Dana generated solid earnings and free cash flow again this quarter as end-market demand remained strong despite ongoing supply and production disruptions impacting the global mobility industry,” said James Kamsickas, Dana chairman and CEO. “While record inflationary costs continue to be a challenge, I am very proud of the perseverance and dedication our team has displayed while executing our enterprise-wide transformation that has led to significant new business growth in both traditional and electric-vehicle solutions. Dana is well positioned to finish the year strong and capitalize on new opportunities across our markets once this environment begins to stabilize.”
Sales for the third quarter of 2022 totaled $2.54 billion, compared with $2.20 billion in the same period of 2021, a $331 million improvement driven by strong customer demand across all of Dana’s end-markets and the recovery of commodity costs, partially offset by foreign currency translation.
The company said Adjusted EBITDA for the third quarter of 2022 was $192 million, compared with $210 million for the same period in 2021. Profit conversion on higher sales in the third quarter of 2022 continued to be more than offset by non-material inflation as well as production inefficiencies driven by volatile customer demand schedules.
The net loss attributable to Dana was $88 million or $0.61 per share, compared with net income of $48 million or $0.33per share in the third quarter of 2021. The company said this loss was driven by a non-cash goodwill impairment charge in the commercial-vehicle segment resulting from increased interest rates as well as the negative impact of cost inflation and customer-driven production inefficiencies.
Adjusted net income attributable to Dana was $34 million and diluted adjusted earnings per share were $0.24 for the third quarter of 2022, compared with an adjusted net income of $60 million and $0.41 per share in 2021. Operating cash flow in the third quarter of 2022 was $171 million, compared with $75 million in the same period of 2021. Free cash flow was $77 million, compared with a use of $170 million in the third quarter of 2021. The improvement was driven by improved working capital management, said Dana.