Sign up USA
Proactive Investors - Run By Investors For Investors

Dana swings to loss in fourth quarter, backs guidance for 2018

Fourth quarter loss is tempered by rises in sales and improved sales backlog for 2018-2020 period due to new business wins
Engine Machinery
Dana Inc paid US$189mln in tax compared to a previous year credit of US$490mln

Dana Inc (NYSE:DAN) reported an unexpected swing to a loss for the fourth quarter, primarily as a result of a US$186mln one-time, non-cash charge due to the US tax reform.

The provider of performance enhancement solutions for powered vehicles and machinery reported a disappointing quarterly loss of US$104mln, or 74 US cents a diluted share. The loss upended analysts' forecasts, which predicted a US$79mln profit, and compared unfavourably with a profit of US$485mln, or $3.34 a diluted share, during the same period last year.

Sales backlog improves 

The company's tax charge in the quarter was US$189mln, compared with a credit of US$490mln previously.

Adjusted underlying earnings (Ebitda) rose to US$197mln, fairly in line with analysts' predictions of US$200mln, compared with US$166mln for the last quarter of 2016.

Sales rose to US$1.84bln, up from US$1.45bln, beating analysts' predictions of US$1.79bln.

The company said it expects sales for 2018 to be between US$7.5bln and US$7.7bln, with an adjusted EBITDA of US$910mln to US$960mln as guided on January 17.

Adjusted diluted earnings are forecast to be between US$2.60 and US$2.90 per share.

The company also reiterated that its 2018-2020 sales backlog at the end of 2017 had improved to US$800mln, driven by new business wins.

Jonathan Collins, the executive vice-president and chief financial officer of Dana, said:  "Our outstanding financial performance in 2017 – driven by organic and inorganic sales growth of 24% combined with strong profit margin, cash flow generation, and progressively higher 2018 expectations – has solidified our trajectory toward achieving our long-term targets”.

Market reaction to the news has not been positive so far, with Dana shares currently down 4.2% to US$28.97.

View full DAN profile View Profile

Dana Inc Timeline

Related Articles

1510592057_gas-pipeline.jpg
November 13 2017
In the quarter, the power and electromechanical segment contributed revenues of $16.7 million,
An illustration of the tools Velpic uses in providing education and incident management
March 22 2018
Velpic has just signed its first NowForce client in Australia.
company logo with user generated content such as pictures
March 11 2018
MediaConsent will complement the company's rapidly expanding core business.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use