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Mar 31, 2022
Dana Q1 2022 Earnings Report
Dana's financial performance reflected sales growth despite challenges from inflation and supply-chain disruptions.
Key Takeaways
Dana Incorporated reported first-quarter sales of $2.48 billion, a $217 million increase from the previous year, driven by strong demand in heavy-vehicle markets and recovery of commodity costs and inflation. Net income attributable to Dana was $17 million, with diluted EPS of $0.12. Adjusted EBITDA was $170 million, while operating cash flow was a use of $121 million and free cash flow was a use of $237 million.
Sales increased by $217 million to $2.48 billion due to strong customer demand and recovery of costs.
Net income attributable to Dana was $17 million, with a diluted EPS of $0.12.
Adjusted EBITDA reached $170 million, but profit conversion was tempered by increased input costs and operational inefficiencies.
Operating cash flow was a use of $121 million, and free cash flow was a use of $237 million due to lower earnings and increased working capital requirements.
Dana
Dana
Dana Revenue by Segment
Revenue by Segment
Light Vehicle Revenue
CapyFin.comCommercial Vehicle Revenue
CapyFin.comOff-Highway Revenue
CapyFin.com Forward Guidance
Dana anticipates sales between $9.850 and $10.350 billion, adjusted EBITDA between $770 and $870 million, diluted adjusted EPS between $1.05 and $1.55, operating cash flow between 5.9 to 6.5 percent of sales, and free cash flow between 1.9 to 2.3 percent of sales.
Positive Outlook
- Strong end-market demand
- Cost recovery actions
- Improving OEM production cadence
- New business backlog
- Infrastructure investment continuing
Challenges Ahead
- Elevated commodity and other input costs
- Net cost inflation of ~$120 million
- Operational inefficiencies driving reduced organic conversion
- Customer production disruptions pressuring conversion
- Increasing commodity costs resulting in higher recoveries adding to sales while creating an additional $50 million headwind to profit from prior outlook
Revenue & Expenses
Visualization of income flow from segment revenue to net income