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

Partners shake hands with a US flag in the backdrop
The company's recent acquisition Telerhythmics wrote US$3.2 million revenues in just nine months.
ShareRoot imagery
November 11 2018
The consumer data security provider is aiming to grow revenue and reduce spending in the coming year.
Data servers
July 31 2018
The company is expected to list on the main board of the LSE in September
Copyright ©, 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