Dana Incorporated announced financial results for the third quarter of 2021. Highlights include sales of $2.2 billion and net income of $48 million.
“Rising commodity costs, supply-chain constraints and labor shortages across the entire global mobility industry continue to impact our business,” says James Kamsickas, Dana chairman and CEO.
“While we expect these challenges to continue in the near-term, we remain diligent in working to offset and recover these higher costs through our established mechanisms,” Kamsickas says. “Moving forward, we anticipate suppressed end-market inventory levels will continue to drive high consumer demand, and Dana is well-positioned to capitalize on the cyclical growth opportunity as the various challenges facing our industry begin to subside.”
2021 Third-quarter financial results
Sales for the third quarter of 2021 totaled $2.20 billion, compared with $1.99 billion in the same period of 2020, representing a $210 million improvement driven by strong customer demand in our heavy-vehicle markets.
Adjusted EBITDA for the third quarter of 2021 was $210 million, compared with $201 million for the same period in 2020. Profit margin compression in the third quarter of 2021 was primarily driven by raw material cost inflation.
Net income attributable to Dana was $48 million for the third quarter of this year, $3 million higher than last year’s third quarter. Diluted adjusted earnings per share were $0.41 in the third quarter of 2021, compared with $0.37 per share in the third quarter of 2020.
Operating cash flow in the third quarter of 2021 was a use of $75 million, compared with $321 million of operating cash flow in the same period of 2020.
Free cash flow was a use of $170 million, compared with $261 million of free cash flow in the third quarter of 2020. Cash flow use in this year’s third quarter was driven by higher working capital requirements resulting from customer schedule disruptions and supply-chain challenges.
“Challenging market dynamics have pressured our third-quarter results and outlook for the remainder of this year,” says Jonathan Collins, Dana executive vice president and chief financial officer.
“Our revised guidance is primarily driven by customer production levels that were lower and less consistent than we had previously expected, and by commodity inflation. Though the near-term outlook remains constrained, we believe the current market dynamics not only position us for robust cyclical growth but also for Dana to achieve above-market secular growth driven by our transition to electrified mobility,” Collins says.
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