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Sep 30, 2020

Dana Q3 2020 Earnings Report

Dana's financial performance rebounded strongly in Q3 2020, driven by increased demand across multiple end markets and effective cost management.

Key Takeaways

Dana Incorporated reported a significant sequential sales increase of 85 percent in the third quarter of 2020, amounting to $2 billion. Net income attributable to Dana was $45 million, with a diluted EPS of $0.31. Adjusted EBITDA stood at $201 million, representing 10.1 percent of sales. The company also invested in Pi Innovo LLC to strengthen its e-Propulsion capabilities.

Sales reached $2 billion, reflecting an $900 million increase from the second quarter due to tempered COVID-19 impacts.

Net income attributable to Dana was $45 million, with a diluted EPS of $0.31.

Adjusted EBITDA amounted to $201 million, with a margin of 10.1 percent of sales.

The company invested in Pi Innovo LLC to enhance expertise in e-Propulsion systems, controls, software, and electronics engineering.

Total Revenue
$1.99B
Previous year: $2.16B
-7.9%
EPS
$0.37
Previous year: $0.74
-50.0%
Adjusted EBITDA
$201M
Gross Profit
$214M
Previous year: $282M
-24.1%
Cash and Equivalents
$956M
Previous year: $402M
+137.8%
Free Cash Flow
$261M
Total Assets
$7.52B
Previous year: $7.23B
+4.0%

Dana

Dana

Forward Guidance

Dana reinstated its full-year financial targets for 2020, anticipating improving business conditions across global end markets.

Positive Outlook

  • Sales of $6.650 to $6.950 billion.
  • Adjusted EBITDA of $530 million to $590 million, with an implied adjusted EBITDA margin of approximately 8 percent at the midpoint of the range.
  • Diluted adjusted EPS of $0.35 to $0.55.
  • Operating cash flow of up to 5 percent of sales.
  • Adjusted free cash flow of up to 1 percent of sales.