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New Delhi:
Auto component major Dana Incorporated on Wednesday reported a sales for the second quarter of 2022 totaled USD 2.59 billion, compared with USD 2.21 billion in the same period of 2021, a USD 381 million improvement driven by strong customer demand across all of our end markets and the recovery of commodity costs, partially offset by foreign currency translation.Adjusted EBITDA for the second quarter of 2022 was USD 162 million, compared with USD 233 million for the same period in 2021. Profit conversion on higher sales in the second quarter of 2022 continued to be tempered by higher raw material costs and non-material inflation, as well as production inefficiencies drove by supply-chain constraints and volatile customer demand schedules across the mobility industry.
“Our adjusted profit targets reflect the difficult environment that continues to impact the entire mobility industry as a result of global supply-chain disruptions and record cost inflation,” said Timothy Kraus, senior vice president and chief financial officer, Dana.
“We continue to aggressively work to mitigate the impact of these challenges. As they begin to subside, we anticipate a sustained recovery period as a more stable production and supply environment, combined with strong end-consumer demand and low-vehicle inventories should drive profitable growth.”
Adjusted net income attributable to Dana was USD 12 million and diluted adjusted earnings per share were USD 0.08 for the second quarter of 2022, compared with an adjusted net income of USD 86 million and USD 0.59 per share in 2021.
“While strong demand, the launching of our new business backlog, and the recovery of commodity costs continued to fuel sales growth for Dana in the second quarter, margins were impacted as a result of record inflation and rising material costs, ongoing supply-chain disruptions, and volatile customer demand schedules that are affecting the entire mobility industry,” said James Kamsickas, chairman and chief executive officer, Dana.
“Despite these challenges, Dana generated significant cash flow in the second quarter as we continued our successful transformation into a leading e-Propulsion supplier. We are focused on launching our new products for both traditional and EV programs, and we are well-positioned to capitalize on the strengthening of our businesses when the global environment begins to stabilize.”
The company expects sales of USD 10 to USD 10.2 billion and an adjusted EBITDA of USD 700 to USD 740 million, an implied adjusted EBITDA margin of approximately 7.1% at the midpoint of the range as a part of 2022 financial target.
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The Company has also acquired Rhombus Energy Solutions, a provider of charging solutions in the North American market. The Company paid approximately USD 130 million at closing, and up to USD 55 million could be paid in the form of contingent payments over the next three years.
The war in Ukraine, the pandemic-related lockdowns in China, the limited availability of semiconductors and significant inflation affected ZF Group business. Its focus is on striking the right balance between our customers’ expectations and our earnings target while ensuring on-going investments in future technologies,” the company said.
Profit before tax stood at INR 438 crores (EUR 51.8 million which constitutes 12.3% of total revenue from operations; that is a 30.5% increase over the same quarter of the previous year. Profit after tax stood at INR 334 crores (EUR 39.5 million) which is 9.4% of revenue from operations, the company said.
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