The following is a summary of the Dana Incorporated (DAN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Dana Incorporated reported Q1 2024 sales of $2.7 billion, a $91 million increase from the prior year due to higher customer demand, new businesses, and market share gains.
The Q1 Adjusted EBITDA was $223 million, an increase of $19 million, reflecting the strength of Dana's core business and operational efficiency.
The company's free cash flow usage of $172 million improved by $118 million from the previous year, driven primarily by working capital improvements and lower capital expenditures.
Business Progress:
Dana anticipates business improvements from stable customer production schedules, execution of efficiency actions, and launches of new programs for growth.
The company's EV sales are expected to reach $1 billion in 2024 with plans to achieve positive EBITDA margins next year, supporting the ongoing focus on and expansion in the EV market.
Several new business rollouts set for 2024 are projected to drive profitable growth, supported by an increased full-year free cash flow outlook of $75 million, a 50% increase from prior guidance.
The company's industry and customer recognition via awards, including the 9th Automotive News PACE Award, indicate its standing and technical expertise in the industry.
Dana forecasts stable volumes in the ICE light-vehicle division, but a slight decrease in Class 8 commercial vehicle sales, signaling some market adjustments in the vehicle industry.
Efforts to mitigate bottom-line impact due to higher commodity losses are in place, showing a strategic response to market challenges.
More details: Dana IR
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