Dana Incorporated saw sales tick up 5% to almost $1.9 billion in the first quarter, an earnings report released Wednesday says.
"Dana's long-term strategy is clear and built on actions fully within our control — improving our cost structure and executing with discipline," says R. Bruce McDonald, chairman and CEO. "Our first-quarter results demonstrate our progress with meaningful margin expansion and continued momentum in new business wins."
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Lower end-market demand drove a lower volume and mix of sales, but Dana did see an improved product mix, cost performance and operating efficiency that helped it expand margins in the first quarter.
Sales are still expected to be higher than last year as increased backlogs and recoveries offset the lower market demand, but Dana expects the commercial vehicle market overall to stay largely flat, a presentation to investors says.
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McDonald says the Dana 2030 plan outlines a path to higher sales, higher margins and increased adjusted free cash flow generation. It has five pillars: Traditional product growth, aftermarket growth, applied technologies growth, manufacturing excellence and structural cost reduction. By 2030, Dana expects to see sales of around $10 billion.
"Dana 2030 establishes ambitious long-term targets and our near-term focus is on translating that vision into sustained execution and performance improvement," says Byron Foster, incoming CEO. "The pace of recent new business wins demonstrates the strength of our product portfolio and reinforces Dana's long-term growth trajectory. As macro and market conditions begin to improve, we are unlocking incremental operating leverage. At the same time our teams are executing with discipline, improving efficiency and positioning Dana to deliver increased performance throughout the year."
