Dana Inc (DAN) Reports Record Sales and Profit Growth for 2023
Record Sales: Dana Inc (NYSE:DAN) achieved a record $10.6 billion in sales for 2023, marking a significant growth trajectory.
Profit Growth: Adjusted EBITDA for the year increased to $845 million, up from $700 million in 2022.
New Business Backlog: The company's new business sales backlog has increased to a record $950 million.
Net Income: Dana reported a net income of $38 million for 2023, a substantial improvement from a net loss of $242 million in 2022.
Free Cash Flow: Free cash flow was a use of $25 million in 2023, compared with a positive free cash flow of $209 million in 2022.
Dana Inc (NYSE:DAN) released its 8-K filing on February 20, 2024, disclosing its financial results for the fourth quarter and full-year 2023. Dana Inc, a global leader in the design and manufacturing of propulsion and energy-management solutions, reported record sales of $10.6 billion for the year, a 21% increase in profit, and a margin improvement of 110 basis points. The company's diverse portfolio, serving light vehicles, commercial vehicles, and off-highway equipment, has been instrumental in this growth, with the Light Vehicle Drive Systems segment being the largest revenue contributor.
The company's performance in 2023 was marked by significant achievements despite challenges such as the UAW strike impacting the Light Vehicle Driveline segment. Dana's ability to launch a record number of programs across all markets and deliver substantial profit conversion on its growth has been a key factor in its success. The adjusted net income attributable to Dana was $122 million, and diluted adjusted earnings per share were $0.84 in 2023, compared with an adjusted net income of $54 million and $0.37 per share in 2022.
Despite a decrease in sales for the fourth quarter of 2023, totaling $2.5 billion compared to $2.6 billion in the same period of 2022, Dana's full-year results reflect a strong market demand and successful conversion of the sales backlog. The net loss attributable to Dana for the fourth quarter was $39 million, or $0.27 per share, an improvement from a net loss of $179 million, or $1.25 per share, in the fourth quarter of 2022. This improvement was primarily due to the impact of the UAW strike, lower earnings from equity-method affiliates, and the devaluation of the Argentine peso.
Looking ahead, Dana anticipates further expansion in sales and profit margins into 2024, leveraging improved cross-company efficiencies and benefiting from a record number of new and refreshed vehicle programs. The company's senior vice president and chief financial officer, Timothy Kraus, expressed confidence in Dana's continued profitable growth trajectory.
For value investors and potential GuruFocus.com members, Dana Inc's robust financial performance, coupled with its strategic positioning in both conventional and clean-energy solutions, presents an attractive investment opportunity. The company's commitment to innovation and sustainability, as well as its strong financial metrics, underscore its potential for continued growth and shareholder value creation.
For more detailed financial information and performance metrics, investors are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Dana Inc for further details.
This article first appeared on GuruFocus.
