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Truck elements provider Dana Inc. on Feb. 22 reported elevated income however an earnings loss within the fourth quarter of 2022. The corporate additionally forecasts that 65% of its new enterprise shall be from electric-vehicle platforms.
For the quarter, Dana reported income of $2.55 billion in contrast with $2.27 billion a 12 months in the past.
For the total 12 months, the corporate generated income of $10.2 billion, a rise of $1.2 billion or 14% over the 2021 interval. Nevertheless, Dana reported a quarterly lack of $178 million or unfavorable $1.25 a share, in contrast with a $29 million revenue, 18 cents per share.
For the total 12 months, Dana reported a lack of $311 million, unfavorable $1.69, in contrast with a revenue of $200 million, $1.39, in 2021.
The corporate attributed the loss to a “one-time noncash goodwill impairment cost of $191 million because of rising rates of interest and decrease market capitalization, and from $157 million of further noncash tax valuation allowances.”
The one-time accounting change is essentially answerable for the loss.
The revenue outcomes missed Wall Road expectations. The common estimate of three analysts surveyed by Zacks Funding Analysis was for earnings of 23 cents per share. Nevertheless income exceeded expectations of $2.5 billion.
“Dana continues to efficiently execute as front-runners within the transformation to a zero-emission world, whereas taking extraordinary operational actions to serve our prospects, together with scaling operations to assist near-term market share good points,” Chairman and CEO James Kamsickas stated. “Our deal with providing full in-house electrification functionality, coupled with our means to leverage vital companywide synergies, allows us to supply distinctive buyer satisfaction — inserting us in a robust place to ship worthwhile above-market gross sales progress in 2023.”
Dana stated through the fourth quarter it generated a file gross sales backlog of $900 million, a rise of $100 million from the earlier three-year backlog that the corporate reported in 2022.
The corporate stated many of the backlog is said to its transition to electrification and the transfer to EVs is contributing to “closely elevated ranges of launch prices” as new applications are began and manufacturing prices ramp up.
“As we closed out 2022, Dana achieved a lot of its objectives, together with gross sales progress and money movement in a difficult setting,” Chief Monetary Officer Timothy Kraus stated. “We skilled sudden headwinds within the fourth quarter, together with increased uncooked materials prices and decrease industrial recoveries, further prices for EV program wins, elevated buyer schedule volatility and incremental prices to scale operations.
“Trying ahead to 2023, we count on gross sales progress to speed up with improved revenue conversion as buyer operations stabilize all year long, ongoing value recoveries largely offset inflation and commodity prices proceed to reasonable.”
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Adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation and amortization) rose 49% for This fall 2022 to $176 million in contrast with $118 million for a similar interval in 2021.
The improved This fall revenue margin primarily was pushed by increased gross sales volumes and price recoveries, the corporate stated. That was partially offset by nonmaterial inflation, in addition to manufacturing inefficiencies pushed by unstable buyer demand schedules and accelerated spending on improvement for electric-vehicle merchandise.
Dana additionally introduced a number of new partnerships, together with supplying battery cooling plates and electronics cooling for Jaguar Land Rover’s next-generation EV platforms plus e-axle suspension and battery cooling plates for Common Motors’ BrightDrop industrial autos.
Dana is making ready to handle about 120 launches of EV and inner combustion engine merchandise this 12 months, together with the GM Ultium program and the redesigned Jeep Wrangler and Gladiator.
The corporate provides elements together with axles, driveshafts, transmissions and different tools for standard, hybrid and electric-powered autos.
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