Dana(US:DAN)2025-04-30 16:05Financial Performance - Net sales for the three months ended March 31, 2025, were $2,352 million, a decrease of 14% compared to $2,735 million in the same period of 2024[8]. - Net income attributable to the parent company increased to $25 million, compared to $3 million in the prior year, reflecting a significant improvement[8]. - Total comprehensive income attributable to the parent company was $57 million, compared to a loss of $14 million in the same period last year[11]. - The company reported a net income of $30 million for the first quarter of 2025, an increase from the previous year's $8 million[35]. - Net income available to common stockholders for the three months ended March 31, 2025, was $25 million, a significant increase from $3 million in the same period of 2024, representing a growth of 733%[41]. - The effective tax rate for Q1 2025 was 22%, significantly lower than 106% in Q1 2024, with an income tax expense of $8 million compared to $37 million in the prior year[82]. - Segment EBITDA for Q1 2025 was $191 million, down from $226 million in Q1 2024, reflecting a decline of 15.5%[95]. Assets and Liabilities - Total assets increased to $7,800 million as of March 31, 2025, up from $7,485 million at the end of 2024[13]. - Current liabilities rose to $2,828 million, compared to $2,561 million at the end of 2024, indicating increased short-term financial obligations[13]. - Long-term debt, less debt issuance costs, was $2.428 billion as of March 31, 2025, compared to $2.389 billion at the end of 2024[49]. - The carrying value of long-term debt was $2,547 million as of March 31, 2025, with a fair value of $2,517 million[60]. - Total current liabilities rose to $2,828 million as of March 31, 2025, compared to $2,561 million at the end of 2024, marking an increase of 10.4%[14]. - The balance of warranty liabilities at the end of the period was $122 million as of March 31, 2025, compared to $115 million at the end of March 31, 2024, showing an increase of 6.1%[78]. Cash Flow and Investments - Cash and cash equivalents at the end of the period were $523 million, up from $387 million in the prior year[16]. - The company reported a net cash used in operating activities of $37 million, an improvement from $102 million in the same period last year[16]. - Cash and cash equivalents increased to $507 million as of March 31, 2025, compared to $494 million at the end of 2024, marking an increase of 2.6%[33]. - The company purchased property, plant, and equipment totaling $75 million in Q1 2025, compared to $70 million in Q1 2024, an increase of 7.1%[95]. - The company entered into an agreement to sell its 48% ownership interest in Axles India Limited for $43 million in cash, closing on April 25, 2025[99]. Restructuring and Costs - The company has accrued restructuring costs totaling $43 million as of March 31, 2025, which includes costs to reduce approximately 700 employees over the next year[31]. - The restructuring activities aim to reduce operating and overhead costs, with a focus on consolidating facilities and reducing headcount in response to market dynamics[29]. - Strategic transaction expenses for Q1 2025 amounted to $15 million, primarily related to the potential sale of the Off-Highway business[84]. Inventory and Sales - The total inventory as of March 31, 2025, increased to $1.617 billion from $1.547 billion as of December 31, 2024, reflecting a growth of 4.5%[33]. - Light Vehicle Systems revenue was $1,180 million, down 11% from $1,324 million in the prior year, with North America contributing $810 million[90]. - Commercial Vehicle Systems revenue decreased to $568 million from $653 million, with North America revenue dropping from $293 million to $229 million[90]. - Off-Highway revenue fell to $604 million from $758 million, with Europe revenue declining from $517 million to $395 million[90]. Accounting and Compliance - The company is evaluating the impact of new accounting guidance on financial statement disclosures, which may affect future reporting[24]. - The company was in compliance with the covenants of its financing agreements as of March 31, 2025, maintaining a first lien net leverage ratio not exceeding 2.00 to 1.00[58]. - The company recognized a net periodic benefit cost of $4 million for OPEB during the three months ended March 31, 2025[46]. Foreign Currency and Hedging - The total notional amount of outstanding foreign currency forward contracts increased to $1,367 million as of March 31, 2025, up from $1,331 million on December 31, 2024[66]. - The total notional amount of outstanding foreign currency swaps rose to $972 million as of March 31, 2025, compared to $951 million on December 31, 2024[66]. - The company executed fixed-to-fixed cross-currency swaps to eliminate variability in cash flows due to exchange rate changes associated with forecasted principal and interest payments[62]. - The amount of gain reclassified from AOCI into income for cross-currency swaps was $26 million for the three months ended March 31, 2025[70].