Dana(DAN)2024-11-25 22:18Financial Performance - Sales for Q3 2024 were $2.48 billion, down from $2.67 billion in Q3 2023, reflecting a decrease of approximately 7.1%[2] - Adjusted EBITDA for Q3 2024 was $232 million, representing an adjusted EBITDA margin of 9.4%, a 30-basis-point improvement compared to 9.1% in Q3 2023[1][2] - Net income attributable to Dana was $4 million, or $0.03 per share, compared to $19 million, or $0.13 per share in Q3 2023, indicating a decline of 78.9% in net income[2] - Operating cash flow for Q3 2024 was $35 million, down from $112 million in Q3 2023, a decrease of 68.8%[2] - Free cash flow for Q3 2024 was a use of $11 million, compared to a use of $5 million in Q3 2023[2] - Net income attributable to the parent company for the nine months ended September 30, 2024, was $23 million, significantly lower than $77 million in 2023, indicating a decline of 70.1%[11] - Earnings before interest and income taxes for the nine months ended September 30, 2024, were $262 million, down from $305 million in 2023, reflecting a decrease of 14.1%[11] - The company reported a total comprehensive income (loss) of $19 million for the three months ended September 30, 2024, compared to a loss of $21 million in the same period of 2023[12] Cash Flow and Liquidity - Total current assets decreased to $4,054 million as of September 30, 2024, compared to $4,103 million at the end of December 31, 2023, a reduction of 1.2%[14] - The company’s cash and cash equivalents decreased to $419 million as of September 30, 2024, from $529 million at the end of December 31, 2023, a decline of 20.9%[14] - Net cash provided by operating activities was $35 million, down from $112 million year-over-year[15] - The company reported a net decrease in cash and cash equivalents of $19 million for the current quarter[15] - Net cash provided by operating activities for the nine months ended September 30, 2023, was $198 million, down from $198 million in the previous year[16] Guidance and Projections - Full-year free cash flow guidance is maintained at $100 million[1] - Revised 2024 financial targets include sales of $10.2 to $10.4 billion and adjusted EBITDA of $855 to $895 million, implying an adjusted EBITDA margin of approximately 8.5% at the midpoint[3] - Diluted adjusted EPS for 2024 is projected to be between $0.75 and $0.95[3] - The company maintained full-year free cash flow guidance, with expectations of approximately $100 million, driven by higher profit and lower capital investment requirements[40] - The 2024 financial guidance anticipates sales of approximately $10.3 billion, reflecting a decrease of $400 million from prior guidance due to lower end-market demand[40] Market Conditions and Demand - Market demand for electric vehicles and traditional programs has softened, impacting sales expectations for the remainder of the year[2] - The company expects continued softening in demand across various end-markets, including agriculture and construction, impacting the second half of 2024[31] Operational Efficiency - The company is focusing on targeted cost-savings actions and reduced capital expenditures to improve profitability and cash flow into next year[2] - Company-wide efficiency improvements contributed to a year-over-year margin increase, despite lower organic sales driven by reduced demand for electric vehicles and commercial trucks[43] - The company is focusing on disciplined capital use to support new business growth while managing costs amid a challenging demand environment[31] Segment Performance - Light Vehicle segment sales decreased to $1,033 million in Q3 2024 from $1,084 million in Q3 2023, a decline of 4.7%[57] - Commercial Vehicle segment sales fell to $494 million in Q3 2024, down 7.7% from $535 million in Q3 2023[57] - Off-Highway segment sales decreased to $627 million in Q3 2024, down 15.1% from $739 million in Q3 2023[57] - Power Technologies segment sales increased to $322 million in Q3 2024, up 3.5% from $311 million in Q3 2023[57] Restructuring and Expenses - The company incurred restructuring charges of $24 million for the three months ended September 30, 2024, compared to $17 million in the same period of 2023, indicating an increase of 41.18%[22] - Corporate expenses and other items for the three months ended September 30, 2024, were $(1) million, compared to $(0) million in the same period of 2023[20]