First-quarter Highlights
- Record first-quarter sales of $2.2 billion, an increase of $25 million compared with first-quarter 2018; represents 5 percent growth on a constant-currency basis
- Net income attributable to Dana of $98 million; diluted EPS of $0.68
- Record adjusted EBITDA of $257 million, an increase of $9 million
- Margin of 11.9 percent of sales, an expansion of 30 basis points
- Record diluted adjusted EPS of $0.78, an improvement of 4 percent over first-quarter 2018
- Awarded 2019 Automotive News PACE Award
- Completed purchase of SME Group; Drive Systems segment from Oerlikon Group
- Dana Incorporated (NYSE: DAN) today announced strong financial results for the first quarter of 2019.
“Dana achieved record sales this quarter, which represents our 10th consecutive quarter of year-over-year sales growth,” said James Kamsickas, Dana president and chief executive officer. “We remain focused on strong execution and top-line growth as we work to fully integrate our recent acquisitions, launch new products, and position the company for success as mobility markets transition to electric propulsion.”
First-quarter 2019 Financial Results
Sales for the first quarter of 2019 totaled $2.16 billion, compared with $2.14 billion in the same period of 2018, representing a $25 million improvement. On a constant-currency basis, sales grew 5 percent over the same period last year. The increase was attributable to conversion of sales backlog, higher end-market demand, and one month of benefit from the ODS acquisition, partially offset by unfavorable currency translation.
Dana reported net income of $98 million for the first quarter of 2019, compared with net income of $108 million in the same period of 2018. The difference was primarily due to $32 million of one-time costs related to recent acquisitions, including transaction expenses, financing charges, and elevated restructuring expenses to support cost synergies. Partially offsetting these expenses was lower income tax expense in the first quarter of 2019 due to the release of certain valuation allowances in the U.S.
Reported diluted earnings per share were $0.68, compared with $0.73 in the first quarter of 2018.
Adjusted EBITDA for the first quarter of 2019 was $257 million, compared with $248 million for the same period last year. Profit in the first quarter of 2019 benefited from both organic and inorganic growth, partially offset by higher commodity costs and the impact of unfavorable currency translation related to the strengthening of the U.S. dollar.
Diluted adjusted earnings per share were $0.78 in the first quarter of 2019, compared with $0.75 in the same period last year.
Operating cash flow in the first quarter of 2019 was a use of $16 million, compared with a use of $28 million in the same period of 2018. Adjusted free cash flow was a use of $114 million, compared with a use of $93 million in the first quarter of 2018. Higher earnings and lower year-over-year working capital requirements were more than offset by increased investment to support new program launches.
The company repurchased 1.4 million shares of common stock in the first quarter of 2019, offsetting the dilutive impact of stock grants.
Please click here to view the full press release.
SOURCE: Dana
