Dana saw Q3 sequential revenue growth of 85%, reinstates FY2020 outlook
Oct. 28, 2020 8:16 AM ET|About: Dana Incorporated (DAN)|By: Niloofer Shaikh, SA News Editor
Dana (NYSE:DAN) reports revenue declined 7.9% in Q3, primarily attributable to weaker end-market demand resulting from the global pandemic shutdown and eventual restart in June.
Sales grew 85% Q/Q, due to increased demand as customers rapidly resumed production after the pandemic related restrictions were lifted.
Revenue by segment: Light Vehicle: $913M (-1.8%); Commercial Vehicle: $314M (-21.1%); Off-Highway: $507M (-12.9%); Power Technologies: $260M (+2.4%).
Adjusted EBITDA slipped 19.6% to $201M.
Adjusted free cash flow expanded 108.8% to $261M.
The company has acquired a non-controlling stake in Pi Innovo LLC, a leader in embedded software solutions and electronics control units for the light vehicle, commercial vehicle, and off-highway markets.
"We were very pleased to see such a rapid recovery in global vehicle demand during the third quarter," said Jonathan Collins, Dana's executive vice president and chief financial officer. "The improving business conditions across all of our global end markets have enabled us to reinstate our revised, full-year financial targets. Dana remains financially strong, and we are well-positioned to capitalize on the strengthening of our businesses through the remainder of this year and into next year."
FY2020 Guidance: Sales: $6.65B to $6.95B; Adjusted EBITDA: $530M to $590M; Adjusted EBITDA margin: ~11.8%; Adjusted EPS: $0.35 to $0.55; Operating cash flow: ~5% of sales; Adjusted free cash flow: ~1% of sales.
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