Dana Incorporated Wednesday announced financial results for the third quarter of 2024.
Sales for the third quarter of 2024 totaled $2.48 billion, compared with $2.67 billion in the same period of 2023. Dana says Weakening market demand for electric vehicles, commercial trucks, off-highway equipment and certain light-truck programs drove lower sales.
"Dana achieved 30 basis points of profit-margin improvement in the third quarter despite lower sales as a result of softening demand for both EV and traditional programs across our end markets," says Jim Kamsickas, chairman and CEO.
"Dana's ability to flex our cost structure and generate efficiencies from our global business and operating systems through the current adverse market conditions is allowing us to continue driving toward our profitability goals," he adds. "Despite market cyclicality, we remain focused on the technology innovations required to meet the needs of our customers and secure long-term, profitable growth."
Dana says adjusted EBITDA for the third quarter of 2024 was $232 million or 9.4 percent of sales, compared with $242 million or 9.1 percent of sales for the same period in 2023. Company-wide efficiency improvements and cost-savings actions offset the margin impact of lower sales, inflation, and spending on development for electric-vehicle products, the company adds.
Operating cash flow in the third quarter of 2024 was $35 million, compared with $112 million in the same period of 2023. Free cash flow was a use of $11 million, compared with a use of $5 million for the third quarter of 2023.
"Lower end-market demand is driving our reduced sales and profit expectations for the remainder of the year," says Timothy Kraus, senior vice president and CFO. "Targeted cost-savings actions and reduced capital expenditures will position us well for continued profit and cashflow improvements into next year."
The company has updated its 2024 forecast to sales of $10.2 billion (from $10.4 billion), and adjusted EBITDA of $855 from $895 million, an implied adjusted EBITDA margin of approximately 8.5 percent at the midpoint of the range.