Dana Reports Higher Sales in Preliminary 2018 Results
Commercial vehicle supplier Dana Inc. announced preliminary 2018 financial results that included higher revenue, and higher earnings before interest, taxes, depreciation and amortization.
The company did not include information on net income and diluted earnings per share, and Dana did not announce when fourth-quarter results would be formally reported. However, a February timeframe is typical.
“For the second consecutive year, Dana achieved double-digit sales growth, adding nearly $1 billion in incremental sales while again improving our margin profile,” CEO James Kamsickas said in a statement.
“Through investment in new technologies and strategic acquisitions, Dana has evolved the business to be energy-source agnostic. Regardless of the vehicle powertrain design, Dana is well-positioned to address the needs of our customers across vehicle architectures in the light-vehicle, commercial-vehicle and off-highway segments,” he said.
Meanwhile, sales hit $8.143 billion, an increase of 13% compared with $934 million in 2017 — primarily due to strong end-market demand, conversion of sales backlog and, to a lesser extent, acquisitions and recovery of material inflation.
Its margin of 11.8% of sales increased by two-tenths from the 2017 period.
Kamsickas
Adjusted EBITDA increased by $122 million to $957 million, compared with a year earlier.
At the same time, significant organic and inorganic growth are expected to drive sales, earnings and free cash flow higher in 2019, according to the Maumee, Ohio-based company.
Dana reported its three-year sales backlog remains strong with $700 million of incremental sales expected from 2019 through 2021. This includes $350 million in incremental new business in 2019, an increase of $50 million compared with the prior three-year backlog.
The same day it released the preliminary results, Dana announced it completed the acquisition of SME Group, a global developer and manufacturer of low-voltage AC induction and synchronous reluctance motors, inverters and controls for a wide range of off-highway electric vehicle applications, including material handling, agriculture and automated-guided vehicles.
Founded in 1904, Dana has more than 30,000 employees in 33 countries on six continents.
