- Dana Inc (NYSE:DAN) reported fourth-quarter FY21 sales growth of 7.7% year-on-year, to $2.27 billion, beating the consensus of $2.17 billion.
- Customer demand in heavy-vehicle markets and the recovery of commodity cost inflation drove the revenue growth.
- Sales from Light Vehicle fell 0.6% Y/Y to $974 million, Commercial Vehicle increased 20.1% to $400 million, Off-Highway climbed 24.6% to $662 million, and Power Technologies declined 10.2%.
- Reported EPS declined to $0.18 from $0.27 last year. Adjusted EPS, which do not include the benefit of the sale-leaseback transaction, were negligible in Q4 versus $0.24 in the prior year.
- The company attributed earnings decline to higher input costs for commodities, transportation, labor, and energy combined with production inefficiencies driven by inconsistent customer order patterns.
- Adjusted EBITDA of $118 million fell 38.5% Y/Y.
- Dana held $287 million in cash and equivalents as of December 31, 2021. Operating cash flow was $139 million.
- "Global supply-chain disruptions, high commodity costs, and labor and semiconductor shortages have continued to disrupt our customers' production patterns that, in turn, have pressured our margins and limited free cash flow over the past year," said CFO Timothy Kraus.
- Outlook: Dana sees FY22 adjusted EPS of $2.05 - $2.55, below the consensus of $2.73.
- The company expects FY22 sales of $9.6 billion - $10.1 billion versus the consensus of $9.8 billion.
- Price Action: DAN shares are trading lower by 6.87% at $20.05 on the last check Wednesday.
