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SEC Filings

8-K
DANA INC filed this Form 8-K on 01/17/2018
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EX-99.1

Exhibit 99.1

 

 

LOGO

IMMEDIATE    

Dana Incorporated Announces Strong Preliminary 2017 Financial Results and Guidance for 2018, Increased Outlook for 2019, $800 Million of Sales Backlog, and Increase to Quarterly Dividend

MAUMEE, Ohio, Jan. 17, 2018 – Dana Incorporated (NYSE: DAN) today announced strong preliminary financial results for 2017 and guidance for 2018. Preliminary sales and adjusted EBITDA for 2017 are in line with the company’s previous guidance. The 2018 guidance reflects significant sales, earnings, and cash flow growth. The increased outlook for 2019 represents a significant improvement from the prior targets. The company also announced that it will increase its quarterly dividend from $0.06 to $0.10 per share, and its board of directors has authorized the repurchase of up to $100 million of common shares over the next two years.

Company Announces Preliminary 2017 Financial Results

 

    Sales of $7.2 billion, an increase of $1.4 billion or growth of 24 percent;

 

    Adjusted EBITDA of $835 million, an increase of $175 million; and

 

    Margin of 11.6 percent of sales, an expansion of 30 basis points.

Preliminary sales for the year approximated $7.2 billion, about 24 percent higher than 2016, primarily due to strong end-market demand, acquisitions, conversion of sales backlog, and favorable currency.

Preliminary adjusted EBITDA for 2017 approximated $835 million, or 11.6 percent of sales, a 30 basis-point improvement over 2016.    

“Over the course of this past year, we made great strides in positioning Dana for long-term success. By delivering profitable organic and inorganic growth in 2017, we have established the foundation for our future as we continue to execute our enterprise strategy,” said James Kamsickas, Dana president and chief executive officer.

Company Updates Sales Backlog

Dana’s 2018-2020 sales backlog as of Dec. 31, 2017, has improved to $800 million, a 7 percent increase over the prior three-year backlog. The increase in the backlog is driven by new business wins as currency and market expectations have remained stable.

Company Issues 2018 Guidance

 

    Sales of $7.5 to $7.7 billion;

 

    Adjusted EBITDA of $910 to $960 million;

 

    Adjusted EBITDA as a percent of sales of 12.1 to 12.5 percent;

 

    Diluted adjusted EPS1 of $2.60 to $2.90;

 

    Operating cash flow of approximately 7.5 percent of sales;

 

    Capital spending of approximately 4.0 percent of sales; and

 

    Free cash flow of approximately 3.5 percent of sales.

 

1  Net income and diluted EPS guidance are not provided, as discussed below in Non-GAAP Financial Information.