Dana Incorporated (NYSE: DAN) today announced that it is taking the necessary actions to adapt to rapidly changing demand levels as certain of its key customers reduce their production levels in response to the ongoing COVID-19 control efforts. The company’s actions include additional employee safety measures, adjusting production schedules, idling certain manufacturing facilities, and managing controllable costs.
Due to this unprecedented disruption in mobility markets and associated economic uncertainty, the company believes it is prudent to withdraw its most recent full-year financial guidance which did not factor in the effects of the COVID-19 pandemic. Results for the first quarter will be impacted primarily by the changes in customer production schedules in the second half of March.
“We believe Dana has ample liquidity to manage significantly lower production volumes,” said Jonathan Collins, executive vice president and chief financial officer. “We are flexing our cost structure to match the lower level of demand and combined with our strong balance sheet, positions us to navigate the current environment.”
The company had $527 million in cash and marketable securities at the end of 2019 and $979 million available on its committed revolving credit facility for total liquidity of more than $1.5 billion. The company notes that it has no meaningful debt maturities before 2024.
The company will provide an update on market conditions on its first-quarter earnings call.
SOURCE: Dana
