Dana Incorporated Announces Strong 2017 Financial Results, Affirms Significant 2018 Guidance Increase
Full-Year Highlights
- Sales of
$7.2 billion , an increase of$1.4 billion , growth of 24 percent - Net income attributable to Dana of
$111 million ; diluted EPS of$0.71 , inclusive of$186 million one-time, non-cash charge due to U.S. tax reform - Adjusted EBITDA of
$835 million , providing a margin of 11.6 percent, an expansion of 30 basis points - Diluted adjusted EPS of
$2.52 , improvement of 30 percent over 2016 - Operating cash flow of
$554 million - Free cash flow of
$161 million , 160 percent improvement over 2016, including$393 million of capital investment to support new business growth - Strong sales backlog of
$800 million , an increase of$50 million or 7 percent over prior three-year backlog - Two-year total shareholder return of 137 percent
"Due to the talents, dedication, and hard work of the more than 30,000 Dana associates, 2017 proved to be a fantastic year as we delivered both organic and inorganic growth," said
Fourth-Quarter 2017 Financial Results
Sales for the fourth quarter of 2017 totaled
Dana reported a net loss of
Reported diluted earnings per share were a loss of
Adjusted EBITDA for the fourth quarter of 2017 was
Diluted adjusted earnings per share, which excludes the above-mentioned nonrecurring income tax and divestiture effects along with other items, were
Operating cash flow in the fourth quarter of 2017 was
Full-Year 2017 Financial Results
Sales for 2017 were $7.21 billion, $1.38 billion higher compared with 2016. Strong market demand and conversion of new business wins provided a combined organic increase in sales of approximately
Net income in 2017 was
Adjusted EBITDA for 2017 was $835 million, or 11.6 percent of sales, 30 basis points higher than 2016. Higher sales volume in all product groups and recent acquisitions added
Diluted earnings per share were
The company reported operating cash flow of
Company Affirms 2018 Guidance
Strong end-market demand and the new-business backlog are driving an expected 6 percent sales growth in 2018. Continued strong demand for key light-truck programs is expected into 2018, as is higher end-market demand for off-highway equipment and commercial vehicles. Increased sales from the new-business backlog are expected to add approximately
Adjusted EBITDA in 2018 is expected to improve by approximately
"Our outstanding financial performance in 2017 – driven by organic and inorganic sales growth of 24 percent combined with strong profit margin, cash flow generation, and progressively higher 2018 expectations – has solidified our trajectory toward achieving our long-term targets," said
2018 Full-Year Financial Targets
- Sales of
$7.5 to $7.7 billion ; - Adjusted EBITDA of
$910 to $960 million , an implied adjusted EBITDA margin of approximately 12.3 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.
1Net income and diluted EPS guidance are not provided, as discussed below in Non-GAAP Financial Information.
Share Repurchase Program
Dana previously announced that its board of directors approved a new share repurchase program, authorizing the purchase of up to
Dana to Host Conference Call at
Dana will discuss its full-year and fourth-quarter results in a conference call at
An audio recording of the webcast will be available after
Non-GAAP Financial Information
This release refers to adjusted EBITDA, a non-GAAP financial measure which we have defined as net income before interest, taxes, depreciation, amortization, equity grant expense, restructuring expense and other adjustments not related to our core operations (gain/loss on debt extinguishment, pension settlements, divestitures, impairment, etc.). Adjusted EBITDA is a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. We use adjusted EBITDA in assessing the effectiveness of our business strategies, evaluating and pricing potential acquisitions and as a factor in making incentive compensation decisions. In addition to its use by management, we also believe adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate financial performance of our company relative to other Tier 1 automotive suppliers. Adjusted EBITDA should not be considered a substitute for income before income taxes, net income or other results reported in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
Diluted adjusted EPS is a non-GAAP financial measure, which we have defined as adjusted net income divided by adjusted diluted shares. We define adjusted net income as net income (loss) attributable to the parent company, excluding any nonrecurring income tax items, restructuring and impairment expense, amortization expense, and other adjustments not related to our core operations (as used in adjusted EBITDA), net of any associated income tax effects. We define adjusted diluted shares as diluted shares as determined in accordance with GAAP based on adjusted net income. This measure is considered useful for purposes of providing investors, analysts, and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to EPS reported by other companies. Diluted adjusted EPS is neither intended to represent nor be an alternative measure to diluted EPS reported under GAAP.
Free cash flow is a non-GAAP financial measure, which we have defined as cash provided by (used in) operating activities, less purchases of property, plant, and equipment. We believe this measure is useful to investors in evaluating the operational cash flow of the company inclusive of the spending required to maintain the operations. Free cash flow is neither intended to represent nor be an alternative to the measure of net cash provided by (used in) operating activities reported under GAAP. Free cash flow may not be comparable to similarly titled measures reported by other companies.
The accompanying financial information provides reconciliations of adjusted EBITDA, diluted adjusted EPS and free cash flow to the most directly comparable financial measures calculated and presented in accordance with GAAP. We have not provided a reconciliation of our adjusted EBITDA and diluted adjusted EPS outlook to the most comparable GAAP measures of net income and diluted EPS. Providing net income and diluted EPS guidance is potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items that are included in net income and diluted EPS, including restructuring actions, asset impairments and income tax valuation adjustments. The accompanying reconciliations of these non-GAAP measures with the most comparable GAAP measures for the historical periods presented are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance.
Please reference the "Non-GAAP financial information" accompanying our quarterly earnings conference call presentations on our website at www.dana.com/investors for our GAAP results and the reconciliations of these measures, where used, to the comparable GAAP measures.
Forward-Looking Statements
Certain statements and projections contained in this news release are, by their nature, forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.
Dana's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other
About
Dana is a world leader in highly engineered solutions for improving the efficiency, performance, and sustainability of powered vehicles and machinery. Dana supports the passenger vehicle, commercial truck, and off-highway markets, as well as industrial and stationary equipment applications. Founded in 1904, Dana employs more than 30,000 people in 33 countries on six continents who are committed to delivering long-term value to customers. Based in
DANA INCORPORATED |
||||||
Consolidated Statement of Operations (Unaudited) |
||||||
For the Three Months Ended December 31, 2017 and 2016 |
||||||
Three Months Ended |
||||||
(In millions, except per share amounts) |
December 31, |
|||||
2017 |
2016 |
|||||
Net sales |
$ 1,837 |
$ 1,447 |
||||
Costs and expenses |
||||||
Cost of sales |
1,583 |
1,243 |
||||
Selling, general and administrative expenses |
132 |
103 |
||||
Amortization of intangibles |
2 |
2 |
||||
Restructuring charges, net |
13 |
|||||
Loss on disposal group held for sale |
(27) |
|||||
Loss on sale of subsidiaries |
(80) |
|||||
Other income (expense), net |
(1) |
9 |
||||
Earnings before interest and income taxes |
92 |
15 |
||||
Interest income |
3 |
5 |
||||
Interest expense |
23 |
29 |
||||
Earnings (loss) before income taxes |
72 |
(9) |
||||
Income tax expense (benefit) |
189 |
(490) |
||||
Equity in earnings of affiliates |
7 |
8 |
||||
Net income (loss) |
(110) |
489 |
||||
Less: Noncontrolling interests net loss |
(3) |
4 |
||||
Less: Redeemable noncontrolling interests net loss |
(3) |
|||||
Net income (loss) attributable to the parent company |
$ (104) |
$ 485 |
||||
Net income (loss) per share available to common stockholders |
||||||
Basic |
$ (0.74) |
$ 3.37 |
||||
Diluted |
$ (0.74) |
$ 3.34 |
||||
Weighted-average shares outstanding - Basic |
145.4 |
144.1 |
||||
Weighted-average shares outstanding - Diluted |
145.4 |
145.3 |
||||
Cash dividends declared per share |
$ 0.06 |
$ 0.06 |
||||
DANA INCORPORATED |
||||||
Consolidated Statement of Operations |
||||||
For the Year Ended December 31, 2017 and 2016 |
||||||
Year Ended |
||||||
(In millions, except per share amounts) |
December 31, |
|||||
2017 |
2016 |
|||||
Net sales |
$ 7,209 |
$ 5,826 |
||||
Costs and expenses |
||||||
Cost of sales |
6,147 |
4,982 |
||||
Selling, general and administrative expenses |
511 |
406 |
||||
Amortization of intangibles |
11 |
8 |
||||
Restructuring charges, net |
14 |
36 |
||||
Loss on disposal group held for sale |
(27) |
|||||
Loss on sale of subsidiaries |
(80) |
|||||
Other income (expense), net |
(9) |
18 |
||||
Earnings before interest and income taxes |
490 |
332 |
||||
Loss on extinguishment of debt |
(19) |
(17) |
||||
Interest income |
11 |
13 |
||||
Interest expense |
102 |
113 |
||||
Earnings before income taxes |
380 |
215 |
||||
Income tax expense (benefit) |
283 |
(424) |
||||
Equity in earnings of affiliates |
19 |
14 |
||||
Net income |
116 |
653 |
||||
Less: Noncontrolling interests net income |
10 |
13 |
||||
Less: Redeemable noncontrolling interests net loss |
(5) |
|||||
Net income attributable to the parent company |
$ 111 |
$ 640 |
||||
Net income per share available to common stockholders |
||||||
Basic |
$ 0.72 |
$ 4.38 |
||||
Diluted |
$ 0.71 |
$ 4.36 |
||||
Weighted-average shares outstanding - Basic |
145.1 |
146.0 |
||||
Weighted-average shares outstanding - Diluted |
146.9 |
146.8 |
||||
Cash dividends declared per share |
$ 0.24 |
$ 0.24 |
||||
DANA INCORPORATED |
|||||||
Consolidated Statement of Comprehensive Income (Unaudited) |
|||||||
For the Three Months Ended December 31, 2017 and 2016 |
|||||||
Three Months Ended |
|||||||
(In millions) |
December 31, |
||||||
2017 |
2016 |
||||||
Net income |
$ (110) |
$ 489 |
|||||
Other comprehensive income (loss), net of tax: |
|||||||
Currency translation adjustments |
(12) |
(39) |
|||||
Hedging gains and losses |
(17) |
(9) |
|||||
Investment and other gains and losses |
2 |
||||||
Defined benefit plans |
(35) |
(52) |
|||||
Other comprehensive loss |
(62) |
(100) |
|||||
Total comprehensive income (loss) |
(172) |
389 |
|||||
Less: Comprehensive (income) loss attributable to noncontrolling interests |
1 |
(1) |
|||||
Less: Comprehensive loss attributable to redeemable noncontrolling interests |
2 |
||||||
Comprehensive income (loss) attributable to the parent company |
$ (169) |
$ 388 |
|||||
DANA INCORPORATED |
|||||||
Consolidated Statement of Comprehensive Income |
|||||||
For the Year Ended December 31, 2017 and 2016 |
|||||||
Year Ended |
|||||||
(In millions) |
December 31, |
||||||
2017 |
2016 |
||||||
Net income |
$ 116 |
$ 653 |
|||||
Other comprehensive income (loss), net of tax: |
|||||||
Currency translation adjustments |
(14) |
(41) |
|||||
Hedging gains and losses |
(30) |
(30) |
|||||
Investment and other gains and losses |
2 |
(2) |
|||||
Defined benefit plans |
(6) |
(39) |
|||||
Other comprehensive loss |
(48) |
(112) |
|||||
Total comprehensive income |
68 |
541 |
|||||
Less: Comprehensive income attributable to noncontrolling interests |
(17) |
(11) |
|||||
Less: Comprehensive loss attributable to redeemable noncontrolling interests |
2 |
||||||
Comprehensive income attributable to the parent company |
$ 53 |
$ 530 |
|||||
DANA INCORPORATED |
|||||
Consolidated Balance Sheet |
|||||
As of December 31, 2017 and December 31, 2016 |
|||||
(In millions, except share and per share amounts) |
December 31, |
December 31, |
|||
2017 |
2016 |
||||
Assets |
|||||
Current assets |
|||||
Cash and cash equivalents |
$ 603 |
$ 707 |
|||
Marketable securities |
40 |
30 |
|||
Accounts receivable |
|||||
Trade, less allowance for doubtful accounts of $8 in 2017 and $6 in 2016 |
994 |
721 |
|||
Other |
172 |
110 |
|||
Inventories |
969 |
638 |
|||
Other current assets |
97 |
78 |
|||
Current assets of disposal group held for sale |
7 |
||||
Total current assets |
2,882 |
2,284 |
|||
Goodwill |
127 |
90 |
|||
Intangibles |
174 |
109 |
|||
Deferred tax assets |
420 |
588 |
|||
Other noncurrent assets |
71 |
226 |
|||
Investments in affiliates |
163 |
150 |
|||
Property, plant and equipment, net |
1,807 |
1,413 |
|||
Total assets |
$ 5,644 |
$ 4,860 |
|||
Liabilities and equity |
|||||
Current liabilities |
|||||
Notes payable, including current portion of long-term debt |
$ 40 |
$ 69 |
|||
Accounts payable |
1,165 |
819 |
|||
Accrued payroll and employee benefits |
219 |
149 |
|||
Taxes on income |
53 |
15 |
|||
Other accrued liabilities |
220 |
201 |
|||
Current liabilities of disposal group held for sale |
5 |
||||
Total current liabilities |
1,702 |
1,253 |
|||
Long-term debt, less debt issuance costs of $22 in 2017 and $21 in 2016 |
1,759 |
1,595 |
|||
Pension and postretirement obligations |
607 |
565 |
|||
Other noncurrent liabilities |
413 |
205 |
|||
Noncurrent liabilities of disposal group held for sale |
2 |
||||
Total liabilities |
4,483 |
3,618 |
|||
Commitments and contingencies |
|||||
Redeemable noncontrolling interest |
47 |
||||
Parent company stockholders' equity |
|||||
Preferred stock, 50,000,000 shares authorized, $0.01 par value, |
|||||
no shares outstanding |
- |
- |
|||
Common stock, 450,000,000 shares authorized, $0.01 par value, |
|||||
144,984,050 and 143,938,280 shares outstanding |
2 |
2 |
|||
Additional paid-in capital |
2,354 |
2,327 |
|||
Retained earnings |
86 |
195 |
|||
Treasury stock, at cost (7,001,017 and 6,812,784 shares) |
(87) |
(83) |
|||
Accumulated other comprehensive loss |
(1,342) |
(1,284) |
|||
Total parent company stockholders' equity |
1,013 |
1,157 |
|||
Noncontrolling interests |
101 |
85 |
|||
Total equity |
1,114 |
1,242 |
|||
Total liabilities and equity |
$ 5,644 |
$ 4,860 |
DANA INCORPORATED |
|||||
Consolidated Statement of Cash Flows (Unaudited) |
|||||
For the Three Months Ended December 31, 2017 and 2016 |
|||||
Three Months Ended |
|||||
(In millions) |
December 31, |
||||
2017 |
2016 |
||||
Operating activities |
|||||
Net income |
$ (110) |
$ 489 |
|||
Depreciation |
58 |
44 |
|||
Amortization of intangibles |
3 |
2 |
|||
Amortization of deferred financing charges |
1 |
1 |
|||
Earnings of affiliates, net of dividends received |
(5) |
(6) |
|||
Stock compensation expense |
6 |
6 |
|||
Deferred income taxes |
169 |
(481) |
|||
Pension contributions, net |
(2) |
(4) |
|||
Loss on sale of subsidiary |
80 |
||||
Loss on disposal group held for sale |
27 |
||||
Change in working capital |
72 |
91 |
|||
Change in other noncurrent assets and liabilities |
(9) |
(1) |
|||
Other, net |
(17) |
(19) |
|||
Net cash provided by operating activities (1) |
193 |
202 |
|||
Investing activities |
|||||
Purchases of property, plant and equipment (1) |
(142) |
(124) |
|||
Acquisition of businesses, net of cash acquired |
(3) |
(60) |
|||
Purchases of marketable securities |
(12) |
(52) |
|||
Proceeds from maturities of marketable securities |
11 |
14 |
|||
Proceeds from sale of subsidiary |
34 |
||||
Other |
3 |
10 |
|||
Net cash used in investing activities |
(143) |
(178) |
|||
Financing activities |
|||||
Net change in short-term debt |
6 |
(5) |
|||
Repayment of long-term debt |
(4) |
||||
Deferred financing payments |
(1) |
||||
Dividends paid to common stockholders |
(9) |
(9) |
|||
Distributions to noncontrolling interests |
(5) |
(1) |
|||
Other |
1 |
4 |
|||
Net cash used in financing activities |
(7) |
(16) |
|||
Net increase in cash and cash equivalents |
43 |
8 |
|||
Cash and cash equivalents − beginning of period |
558 |
727 |
|||
Effect of exchange rate changes on cash balances |
2 |
(28) |
|||
Cash and cash equivalents − end of period |
$ 603 |
$ 707 |
|||
(1) Free cash flow of $51 in 2017 and $78 in 2016 is the sum of net cash provided by |
|||||
operating activities reduced by the purchases of property, plant and equipment. |
DANA INCORPORATED |
|||||
Consolidated Statement of Cash Flows |
|||||
For the Year Ended December 31, 2017 and 2016 |
|||||
Year Ended |
|||||
(In millions) |
December 31, |
||||
2017 |
2016 |
||||
Operating activities |
|||||
Net income |
$ 116 |
$ 653 |
|||
Depreciation |
220 |
173 |
|||
Amortization of intangibles |
13 |
9 |
|||
Amortization of deferred financing charges |
5 |
5 |
|||
Call premium on debt |
15 |
12 |
|||
Write-off of deferred financing costs |
4 |
5 |
|||
Earnings of affiliates, net of dividends received |
(3) |
(3) |
|||
Stock compensation expense |
23 |
17 |
|||
Deferred income taxes |
179 |
(480) |
|||
Pension contributions, net |
(6) |
(16) |
|||
(Gain) loss on sale of subsidiary |
(3) |
80 |
|||
Loss on disposal group held for sale |
27 |
||||
Change in working capital |
(8) |
(51) |
|||
Change in other noncurrent assets and liabilities |
(9) |
(1) |
|||
Other, net |
(19) |
(19) |
|||
Net cash provided by operating activities (1) |
554 |
384 |
|||
Investing activities |
|||||
Purchases of property, plant and equipment (1) |
(393) |
(322) |
|||
Acquisition of businesses, net of cash acquired |
(187) |
(78) |
|||
Purchases of marketable securities |
(35) |
(93) |
|||
Proceeds from sales of marketable securities |
1 |
47 |
|||
Proceeds from maturities of marketable securities |
27 |
47 |
|||
Proceeds from sale of subsidiary |
3 |
34 |
|||
Other |
3 |
||||
Net cash used in investing activities |
(581) |
(365) |
|||
Financing activities |
|||||
Net change in short-term debt |
(90) |
9 |
|||
Proceeds from long-term debt |
676 |
441 |
|||
Repayment of long-term debt |
(640) |
(382) |
|||
Call premium on debt |
(15) |
(12) |
|||
Deferred financing payments |
(9) |
(11) |
|||
Dividends paid to common stockholders |
(35) |
(35) |
|||
Distributions to noncontrolling interests |
(12) |
(17) |
|||
Repurchases of common stock |
(81) |
||||
Other |
5 |
||||
Net cash used in financing activities |
(120) |
(88) |
|||
Net decrease in cash and cash equivalents |
(147) |
(69) |
|||
Cash and cash equivalents − beginning of period |
707 |
791 |
|||
Effect of exchange rate changes on cash balances |
43 |
(15) |
|||
Cash and cash equivalents − end of period |
$ 603 |
$ 707 |
|||
(1) Free cash flow of $161 in 2017 and $62 in 2016 is the sum of net cash provided by |
|||||
operating activities reduced by the purchases of property, plant and equipment. |
|||||
DANA INCORPORATED |
|||||
Segment Sales and Segment EBITDA (Unaudited) |
|||||
For the Three Months Ended December 31, 2017 and 2016 |
|||||
Three Months Ended |
|||||
(In millions) |
December 31, |
||||
2017 |
2016 |
||||
Sales |
|||||
Light Vehicle |
$ 803 |
$ 694 |
|||
Commercial Vehicle |
355 |
278 |
|||
Off-Highway |
414 |
217 |
|||
Power Technologies |
265 |
258 |
|||
Total Sales |
$ 1,837 |
$ 1,447 |
|||
Segment EBITDA |
|||||
Light Vehicle |
$ 86 |
$ 77 |
|||
Commercial Vehicle |
25 |
15 |
|||
Off-Highway |
55 |
32 |
|||
Power Technologies |
36 |
38 |
|||
Total Segment EBITDA |
202 |
162 |
|||
Corporate expense and other items, net |
(5) |
4 |
|||
Adjusted EBITDA |
$ 197 |
$ 166 |
|||
DANA INCORPORATED |
|||||
Segment Sales and Segment EBITDA |
|||||
For the Year Ended December 31, 2017 and 2016 |
|||||
Year Ended |
|||||
(In millions) |
December 31, |
||||
2017 |
2016 |
||||
Sales |
|||||
Light Vehicle |
$ 3,172 |
$ 2,607 |
|||
Commercial Vehicle |
1,412 |
1,254 |
|||
Off-Highway |
1,521 |
909 |
|||
Power Technologies |
1,104 |
1,056 |
|||
Total Sales |
$ 7,209 |
$ 5,826 |
|||
Segment EBITDA |
|||||
Light Vehicle |
$ 359 |
$ 279 |
|||
Commercial Vehicle |
116 |
96 |
|||
Off-Highway |
212 |
129 |
|||
Power Technologies |
168 |
158 |
|||
Total Segment EBITDA |
855 |
662 |
|||
Corporate expense and other items, net |
(20) |
(2) |
|||
Adjusted EBITDA |
$ 835 |
$ 660 |
|||
DANA INCORPORATED |
||||
Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) |
||||
For the Three Months Ended December 31, 2017 and 2016 |
||||
Three Months Ended |
||||
(In millions) |
December 31, |
|||
2017 |
2016 |
|||
Segment EBITDA |
$ 202 |
$ 162 |
||
Corporate expense and other items, net |
(5) |
4 |
||
Adjusted EBITDA |
197 |
166 |
||
Depreciation |
(58) |
(44) |
||
Amortization of intangibles |
(3) |
(2) |
||
Restructuring charges, net |
(13) |
|||
Stock compensation expense |
(6) |
(6) |
||
Strategic transaction expenses |
(5) |
(7) |
||
Loss on disposal group held for sale |
(27) |
|||
Loss on sale of subsidiaries |
(80) |
|||
Other items |
(6) |
1 |
||
Earnings before interest and income taxes |
92 |
15 |
||
Interest expense |
(23) |
(29) |
||
Interest income |
3 |
5 |
||
Earnings (loss) before income taxes |
72 |
(9) |
||
Income tax expense (benefit) |
189 |
(490) |
||
Equity in earnings of affiliates |
7 |
8 |
||
Net income (loss) |
$ (110) |
$ 489 |
||
DANA INCORPORATED |
||||
Reconciliation of Segment and Adjusted EBITDA to Net Income |
||||
For the Year Ended December 31, 2017 and 2016 |
||||
Year Ended |
||||
(In millions) |
December 31, |
|||
2017 |
2016 |
|||
Segment EBITDA |
$ 855 |
$ 662 |
||
Corporate expense and other items, net |
(20) |
(2) |
||
Adjusted EBITDA |
835 |
660 |
||
Depreciation |
(220) |
(173) |
||
Amortization of intangibles |
(13) |
(9) |
||
Restructuring charges, net |
(14) |
(36) |
||
Stock compensation expense |
(23) |
(17) |
||
Strategic transaction expenses |
(25) |
(13) |
||
Acquisition related inventory adjustments |
(14) |
|||
Loss on disposal group held for sale |
(27) |
|||
Loss on sale of subsidiaries |
(80) |
|||
Other items |
(9) |
|||
Earnings before interest and income taxes |
490 |
332 |
||
Loss on extinguishment of debt |
(19) |
(17) |
||
Interest expense |
(102) |
(113) |
||
Interest income |
11 |
13 |
||
Earnings before income taxes |
380 |
215 |
||
Income tax expense (benefit) |
283 |
(424) |
||
Equity in earnings of affiliates |
19 |
14 |
||
Net income |
$ 116 |
$ 653 |
||
DANA INCORPORATED |
|||||
Diluted Adjusted EPS (Unaudited) |
|||||
For the Three Months Ended December 31, 2017 and 2016 |
|||||
(In millions, except per share amounts) |
|||||
Three Months Ended |
|||||
December 31, |
|||||
2017 |
2016 |
||||
Net income attributable to parent company |
$ (104) |
$ 485 |
|||
Items impacting income before income taxes: |
|||||
Restructuring charges |
13 |
||||
Amortization of intangibles |
3 |
2 |
|||
Loss on disposal group held for sale |
27 |
||||
Loss on sale of subsidiary |
80 |
||||
Strategic transaction expenses |
5 |
7 |
|||
Other items |
2 |
||||
Items impacting income taxes: |
|||||
Net income tax benefits on items above |
(1) |
(33) |
|||
U.S. tax reform legislation |
186 |
||||
Release of U.S. federal valuation allowance |
(501) |
||||
Valuation allowance (release) provision, net |
(27) |
23 |
|||
Other nonrecurring tax adjustments |
8 |
9 |
|||
Items impacting noncontrolling interests |
(7) |
||||
Adjusted net income |
$ 92 |
$ 85 |
|||
Diluted shares - as reported |
145.4 |
145.3 |
|||
Adjustment - common stock equivalents |
2.2 |
||||
Adjusted diluted shares |
147.6 |
145.3 |
|||
Diluted adjusted EPS |
$ 0.62 |
$ 0.59 |
|||
DANA INCORPORATED |
|||||
Diluted Adjusted EPS (Unaudited) |
|||||
For the Year Ended December 31, 2017 and 2016 |
|||||
(In millions, except per share amounts) |
|||||
Year Ended |
|||||
December 31, |
|||||
2017 |
2016 |
||||
Net income attributable to parent company |
$ 111 |
$ 640 |
|||
Items impacting income before income taxes: |
|||||
Restructuring charges |
14 |
36 |
|||
Amortization of intangibles |
13 |
9 |
|||
Loss on extinguishment of debt |
19 |
17 |
|||
Loss on disposal group held for sale |
27 |
||||
Loss (income) on sale of subsidiary |
(3) |
80 |
|||
Strategic transaction expenses |
25 |
13 |
|||
Acquisition related inventory adjustments |
14 |
||||
Other items |
8 |
(4) |
|||
Items impacting income taxes: |
|||||
Net income tax benefits on items above |
(18) |
(45) |
|||
U.S. tax reform legislation |
186 |
||||
Release of U.S. federal valuation allowance |
(501) |
||||
Valuation allowance (release) provision, net |
(27) |
23 |
|||
Other nonrecurring tax adjustments |
8 |
17 |
|||
Items impacting noncontrolling interests |
(7) |
||||
Adjusted net income |
$ 370 |
$ 285 |
|||
Diluted shares - as reported |
146.9 |
146.8 |
|||
Adjusted diluted shares |
146.9 |
146.8 |
|||
Diluted adjusted EPS |
$ 2.52 |
$ 1.94 |
|||
View original content with multimedia:http://www.prnewswire.com/news-releases/dana-incorporated-announces-strong-2017-financial-results-affirms-significant-2018-guidance-increase-300597557.html
SOURCE
Media Contact: Jeff Cole, +1-419-887-3535, jeff.cole@dana.com or Investor Contact: Craig Barber, +1-419-887-5166, craig.barber@dana.com