Dana Announces Revenue of $6 Billion for 2015
Heavy-duty supplier Dana Holding Corp. announced preliminary financial results of $6 billion in revenue for 2015, which is comparable with its performance in 2014 and is its guidance for what it expects in 2016.
The company also said it would repurchase up to $300 million of common shares over the next two years after a similar repurchase in 2015that completed an earlier $1.4 billion share repurchase authorization.
In addition, Dana said it has resolved supplier-related issues within its commercial vehicle unit.
“Our commercial vehicle segment was challenged this past year due to a major supplier transition, and while adversely impacting our 2015 performance, this completed initiative has better positioned this business for future success,” CEO James Kamsickas said in a statement.
As part of its guidance, the company pointed to gains in its sales backlog 2016-2018.
As of Dec. 31, Dana said its sales backlog rose to $750 million, 10% higher than the revised three-year backlog announced at the beginning of 2015, after adjustment for currency and market demand expectations.
The gains came primarily at the light-vehicle driveline, off-highway driveline and power technologies businesses, “which more than offset lower expected customer share in commercial-vehicle driveline and currency and market demand impacts,” Dana’s statement said.
Speaking of 2015, Dana said full-year 2015 sales of $6 billion were comparable with a year ago after adjusting for currency translation of more than $500 million and the divestiture of its Venezuela operations. Additionally, contributions from new business wins and strong North American vehicular markets largely offset weaker demand in the global off-highway and Brazilian markets.
The company said 2015‘s adjusted earnings before interest, taxes, depreciation and amortization were $655 million or 10.9% of sales, down from 11.3% of sales in 2014.
Financial guidance for 2016, Dana said, includes sales of $5.8 to $6 billion and diluted adjusted earnings per share of $1.65 to $1.80, excluding the impact of share repurchases after Dec. 31, 2015.
Also, it expects adjusted EBITDA of $640 to $670 million, or 11% to 11.2% of sales.
“While overall demand across served end markets is expected to be relatively flat in 2016," the statement said, "increased sales from new customer program launches are expected to provide a partial offset to anticipated currency headwinds.”
