Dana Incorporated Reports 2023 Record Sales and Profit Growth of 21 Percent, Including Margin Improvement of 110 Basis Points; Company Increases New Business Sales Backlog to Record $950 Million
Full-year Results
-
Sales of
$10.6 billion , an increase of$0.4 billion or 4 percent over last year -
Net income of
$38 million , compared with a net loss of$242 million in 2022 -
Adjusted EBITDA of
$845 million , an increase of$145 million over last year - Adjusted EBITDA margin of 8 percent, a 110-basis-point improvement compared with 2022
-
Operating cash flow of
$476 million -
Record three-year new business sales backlog of
$950 million , a$50 million increase over prior backlog -
2024 guidance of approximately 3 percent increase in sales, 10 percent increase in adjusted EBITDA,
$75 million increase in free cash flow
"With record sales reaching
"We are building on this strong momentum, as we expect to further expand sales and profit margin into 2024. Our record three-year new business backlog has grown to
Fourth-quarter 2023 Financial Results
Sales for the fourth quarter of 2023 totaled
Adjusted EBITDA for the fourth quarter of 2023 was $156 million, compared with $176 million for the same period in 2022. Strong efficiency improvements partially offset the margin impact of the UAW strike and higher spending on development for electric-vehicle products.
The net loss attributable to Dana was
The adjusted net loss attributable to Dana was $11 million, or
Full-year 2023 Financial Results
Sales for 2023 were $10.6 billion, compared with
Adjusted EBITDA for 2023 was $845 million, compared with
The net income attributable to Dana for 2023 was
Adjusted net income attributable to Dana was
The company reported operating cash flow of $476 million in 2023. Free cash flow was a use of
"Finishing 2023 with strong results has set the stage for continued profitable growth," said
2024 Financial Targets
- Sales of
$10.65 to$11 .15 billion; - Adjusted EBITDA of $875 to
$975 million , an implied adjusted EBITDA margin of approximately 8.5 percent at the midpoint of the range; - Operating cash flow of approximately $475 to
$525 million ; and - Free cash flow of
$25 to$75 million ; - Diluted EPS of
$0.35 to$0.85 .
Dana to Host Conference Call at
Dana will discuss its fourth-quarter and full-year results in a conference call at
Conference ID: 9943139
Participant Toll-Free Dial-In Number: 1 (888) 440-5873
Participant Toll Dial-In Number: 1 (646) 960-0319
Audio streaming and slides will be available online via a link provided on the Dana investor website: www.dana.com/investors. Phone registration will be available beginning at
A webcast replay can be accessed via Dana's investor website following the call.
Non-GAAP Financial Information
Adjusted EBITDA is a non-GAAP financial measure which we have defined as net income (loss) before interest, income taxes, depreciation, amortization, equity grant expense, restructuring expense, non-service cost components of pension and other postretirement benefit costs and other adjustments not related to our core operations (gain/loss on debt extinguishment, pension settlements, divestitures, impairment, etc.). Adjusted EBITDA is a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. We use adjusted EBITDA in assessing the effectiveness of our business strategies, evaluating and pricing potential acquisitions and as a factor in making incentive compensation decisions. In addition to its use by management, we also believe adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate financial performance of our company relative to other Tier 1 automotive suppliers. Adjusted EBITDA should not be considered a substitute for earnings (loss) before income taxes, net income (loss) or other results reported in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
Adjusted net income (loss) attributable to the parent company is a non-GAAP financial measure which we have defined as net income (loss) attributable to the parent company, excluding any discrete income tax items, restructuring charges, amortization expense and other adjustments not related to our core operations (as used in adjusted EBITDA), net of any associated income tax effects. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to net income attributable to the parent company reported by other companies. Adjusted net income (loss) attributable to the parent company is neither intended to represent nor be an alternative measure to net income (loss) attributable to the parent company reported in accordance with GAAP.
Diluted adjusted EPS is a non-GAAP financial measure which we have defined as adjusted net income (loss) attributable to the parent company divided by adjusted diluted shares. We define adjusted diluted shares as diluted shares as determined in accordance with GAAP based on adjusted net income (loss) attributable to the parent company. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to EPS reported by other companies. Diluted adjusted EPS is neither intended to represent nor be an alternative measure to diluted EPS reported in accordance with GAAP.
Free cash flow is a non-GAAP financial measure which we have defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment. We believe free cash flow is useful to investors in evaluating the operational cash flow of the company inclusive of the spending required to maintain the operations. Free cash flow is not intended to represent nor be an alternative to the measure of net cash provided by (used in) operating activities reported in accordance with GAAP. Free cash flow may not be comparable to similarly titled measures reported by other companies.
The accompanying financial information provides reconciliations of adjusted EBITDA, diluted adjusted EPS and free cash flow to the most directly comparable financial measures calculated and presented in accordance with GAAP. We have not provided a reconciliation of our adjusted EBITDA and diluted adjusted EPS outlook to the most comparable GAAP measures of net income (loss) and diluted EPS. Providing net income (loss) and diluted EPS guidance is potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items that are included in net income (loss) and diluted EPS, including restructuring actions, asset impairments and certain income tax adjustments. The accompanying reconciliations of these non-GAAP measures with the most comparable GAAP measures for the historical periods presented are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance.
Forward-Looking Statements
Certain statements and projections contained in this news release are, by their nature, forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, estimates, and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," and similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties, and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.
Dana's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other
About
Dana is a leader in the design and manufacture of highly efficient propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe. The company is shaping sustainable progress through its conventional and clean-energy solutions that support nearly every vehicle manufacturer with drive and motion systems; electrodynamic technologies, including software and controls; and thermal, sealing, and digital solutions.
Based in
|
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Consolidated Statement of Operations (Unaudited) |
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|
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|
For the Three Months Ended |
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|
|
|
|
|
|
|
|
|
|
|
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|
Three Months Ended |
||
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(In millions, except per share amounts) |
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|
|||
|
|
|
|
2023 |
|
2022 |
|
Net sales |
|
|
$ 2,494 |
|
$ 2,555 |
|
Costs and expenses |
|
|
|
|
|
|
Cost of sales |
|
2,330 |
|
2,375 |
|
|
Selling, general and administrative expenses |
|
139 |
|
121 |
|
|
Amortization of intangibles |
|
3 |
|
4 |
|
|
Restructuring charges, net |
|
4 |
|
|
|
|
Other income (expense), net |
|
(7) |
|
7 |
|
|
Earnings before interest and income taxes |
|
11 |
|
62 |
|
|
Interest income |
|
3 |
|
5 |
|
|
Interest expense |
|
40 |
|
33 |
|
|
Earnings (loss) before income taxes |
|
(26) |
|
34 |
|
|
Income tax expense |
|
3 |
|
217 |
|
|
Equity in earnings (loss) of affiliates |
|
(15) |
|
5 |
|
|
Net loss |
|
|
(44) |
|
(178) |
|
Less: Noncontrolling interests net income |
|
5 |
|
4 |
|
|
Less: Redeemable noncontrolling interests net loss |
|
(10) |
|
(3) |
|
|
Net loss attributable to the parent company |
|
$ (39) |
|
$ (179) |
|
|
|
|
|
|
|
|
|
Net loss per share available to common stockholders |
|
|
|
|
|
|
Basic |
|
|
$ (0.27) |
|
$ (1.25) |
|
Diluted |
|
|
$ (0.27) |
|
$ (1.25) |
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - Basic |
|
144.5 |
|
143.4 |
|
|
Weighted-average shares outstanding - Diluted |
|
144.5 |
|
143.4 |
|
|
|
|
|
|
|
|
|
Consolidated Statement of Operations |
|
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|
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For the Year Ended |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
||
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(In millions, except per share amounts) |
|
|
|||
|
|
|
|
2023 |
|
2022 |
|
Net sales |
|
|
$ 10,555 |
|
$ 10,156 |
|
Costs and expenses |
|
|
|
|
|
|
Cost of sales |
|
9,655 |
|
9,393 |
|
|
Selling, general and administrative expenses |
|
549 |
|
495 |
|
|
Amortization of intangibles |
|
13 |
|
14 |
|
|
Restructuring charges, net |
|
25 |
|
(1) |
|
|
Impairment of goodwill |
|
|
|
(191) |
|
|
Other income (expense), net |
|
3 |
|
22 |
|
|
Earnings before interest and income taxes |
|
316 |
|
86 |
|
|
Loss on extinguishment of debt |
|
(1) |
|
|
|
|
Interest income |
|
17 |
|
11 |
|
|
Interest expense |
|
154 |
|
128 |
|
|
Earnings (loss) before income taxes |
|
178 |
|
(31) |
|
|
Income tax expense |
|
121 |
|
284 |
|
|
Equity in earnings (loss) of affiliates |
|
(9) |
|
4 |
|
|
Net income (loss) |
|
48 |
|
(311) |
|
|
Less: Noncontrolling interests net income |
|
22 |
|
15 |
|
|
Less: Redeemable noncontrolling interests net loss |
|
(12) |
|
(84) |
|
|
Net income (loss) attributable to the parent company |
|
$ 38 |
|
$ (242) |
|
|
|
|
|
|
|
|
|
Net income (loss) per share available to common stockholders |
|
|
|
|
|
|
Basic |
|
|
$ 0.26 |
|
$ (1.69) |
|
Diluted |
|
|
$ 0.26 |
|
$ (1.69) |
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - Basic |
|
144.4 |
|
143.6 |
|
|
Weighted-average shares outstanding - Diluted |
|
144.6 |
|
143.6 |
|
|
DANA INCORPORATED |
|
|
|
|
|
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Consolidated Statement of Comprehensive Income (Unaudited) |
|
|
|
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For the Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||
|
(In millions) |
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|
|
|||
|
|
|
|
|
2023 |
|
2022 |
|
Net loss |
|
|
$ (44) |
|
$ (178) |
|
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
Currency translation adjustments |
|
|
36 |
|
32 |
|
|
Hedging gains and losses |
|
|
2 |
|
19 |
|
|
Defined benefit plans |
|
|
(16) |
|
48 |
|
|
Other comprehensive income |
|
|
22 |
|
99 |
|
Total comprehensive loss |
|
|
(22) |
|
(79) |
|
|
|
Less: Comprehensive income attributable to noncontrolling interests |
|
|
(6) |
|
(4) |
|
|
Less: Comprehensive (income) loss attributable to redeemable noncontrolling interests |
|
|
6 |
|
(2) |
|
Comprehensive loss attributable to the parent company |
|
|
$ (22) |
|
$ (85) |
|
|
DANA INCORPORATED |
|
|
|
|
|
|
|
Consolidated Statement of Comprehensive Income |
|
|
|
|
|
|
|
For the Year Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
||
|
(In millions) |
|
|
|
|||
|
|
|
|
|
2023 |
|
2022 |
|
Net income (loss) |
|
|
$ 48 |
|
$ (311) |
|
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
Currency translation adjustments |
|
|
30 |
|
(102) |
|
|
Hedging gains and losses |
|
|
(1) |
|
17 |
|
|
Defined benefit plans |
|
|
(16) |
|
53 |
|
|
Other comprehensive income (loss) |
|
|
13 |
|
(32) |
|
Total comprehensive income (loss) |
|
|
61 |
|
(343) |
|
|
|
Less: Comprehensive income attributable to noncontrolling interests |
|
|
(22) |
|
(10) |
|
|
Less: Comprehensive loss attributable to redeemable noncontrolling interests |
|
|
10 |
|
95 |
|
Comprehensive income (loss) attributable to the parent company |
|
|
$ 49 |
|
$ (258) |
|
|
DANA INCORPORATED |
|
|
|
|
|
|
|
Consolidated Balance Sheet |
|
|
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As of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
|
Assets |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ 529 |
|
$ 425 |
|
|
Accounts receivable |
|
|
|
|
|
|
|
Trade, less allowance for doubtful accounts of |
|
|
1,371 |
|
1,374 |
|
|
Other |
|
|
280 |
|
202 |
|
|
Inventories |
|
|
1,676 |
|
1,609 |
|
|
Other current assets |
|
|
247 |
|
219 |
|
|
Total current assets |
|
4,103 |
|
3,829 |
||
|
Goodwill |
|
|
263 |
|
259 |
|
|
Intangibles |
|
|
182 |
|
201 |
|
|
Deferred tax assets |
|
|
516 |
|
397 |
|
|
Other noncurrent assets |
|
|
140 |
|
123 |
|
|
Investments in affiliates |
|
|
123 |
|
136 |
|
|
Operating lease assets |
|
|
327 |
|
311 |
|
|
Property, plant and equipment, net |
|
|
2,311 |
|
2,193 |
|
|
Total assets |
|
$ 7,965 |
|
$ 7,449 |
||
|
|
|
|
|
|
|
|
|
Liabilities, redeemable noncontrolling interests and equity |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Short-term debt |
|
|
$ 22 |
|
$ 52 |
|
|
Current portion of long-term debt |
|
|
35 |
|
8 |
|
|
Accounts payable |
|
|
1,756 |
|
1,838 |
|
|
Accrued payroll and employee benefits |
|
|
288 |
|
214 |
|
|
Taxes on income |
|
|
86 |
|
54 |
|
|
Current portion of operating lease liabilities |
|
|
42 |
|
36 |
|
|
Other accrued liabilities |
|
|
373 |
|
277 |
|
|
Total current liabilities |
|
2,602 |
|
2,479 |
||
|
Long-term debt, less debt issuance costs of |
|
|
2,598 |
|
2,348 |
|
|
Noncurrent operating lease liabilities |
|
|
284 |
|
277 |
|
|
Pension and postretirement obligations |
|
|
334 |
|
298 |
|
|
Other noncurrent liabilities |
|
|
319 |
|
249 |
|
|
Total liabilities |
|
6,137 |
|
5,651 |
||
|
Commitments and contingencies |
|
|
|
|
|
|
|
Redeemable noncontrolling interests |
|
|
|
191 |
|
195 |
|
Parent company stockholders' equity |
|
|
|
|
|
|
|
Preferred stock, 50,000,000 shares authorized, |
|
|
|
|
|
|
|
no shares outstanding |
|
- |
|
- |
||
|
Common stock, 450,000,000 shares authorized, |
|
|
|
|
|
|
|
144,386,484 and 143,366,482 shares outstanding |
|
2 |
|
2 |
||
|
Additional paid-in capital |
|
|
2,255 |
|
2,229 |
|
|
Retained earnings |
|
|
317 |
|
321 |
|
|
|
|
|
(9) |
|
- |
|
|
Accumulated other comprehensive loss |
|
|
(990) |
|
(1,001) |
|
|
Total parent company stockholders' equity |
|
1,575 |
|
1,551 |
||
|
Noncontrolling interests |
|
|
62 |
|
52 |
|
|
Total equity |
|
1,637 |
|
1,603 |
||
|
Total liabilities, redeemable noncontrolling interests and equity |
|
$ 7,965 |
|
$ 7,449 |
||
|
|
|
|
|
|
|
|
Consolidated Statement of Cash Flows (Unaudited) |
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||
|
(In millions) |
|
|
|||
|
|
|
|
2023 |
|
2022 |
|
Operating activities |
|
|
|
|
|
|
Net loss |
|
$ (44) |
|
$ (178) |
|
|
Depreciation |
|
106 |
|
95 |
|
|
Amortization |
|
6 |
|
6 |
|
|
Amortization of deferred financing charges |
|
1 |
|
1 |
|
|
Earnings of affiliates, net of dividends received |
|
15 |
|
(6) |
|
|
Stock compensation expense |
|
7 |
|
6 |
|
|
Deferred income taxes |
|
(58) |
|
209 |
|
|
Pension expense, net |
|
(1) |
|
(1) |
|
|
Change in working capital |
|
239 |
|
220 |
|
|
Change in other noncurrent assets and liabilities |
|
11 |
|
3 |
|
|
Other, net |
|
(4) |
|
(13) |
|
|
Net cash provided by operating activities |
|
278 |
|
342 |
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(142) |
|
(140) |
|
|
Proceeds from sale of property, plant and equipment |
|
2 |
|
3 |
|
|
Proceeds from sales of marketable securities |
|
|
|
12 |
|
|
Settlements of undesignated derivatives |
|
(3) |
|
(2) |
|
|
Other, net |
|
(2) |
|
(2) |
|
|
Net cash used in investing activities |
|
(145) |
|
(129) |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
Net change in short-term debt |
|
(15) |
|
(179) |
|
|
Repayment of long-term debt |
|
(2) |
|
(5) |
|
|
Dividends paid to common stockholders |
|
(15) |
|
(15) |
|
|
Distributions to noncontrolling interests |
|
|
|
(1) |
|
|
Contributions from redeemable noncontrolling interests |
|
4 |
|
21 |
|
|
Other, net |
|
(1) |
|
(1) |
|
|
Net cash used in financing activities |
|
(29) |
|
(180) |
|
|
|
|
|
|
|
|
|
Net increase in cash, cash equivalents and restricted cash |
|
104 |
|
33 |
|
|
Cash, cash equivalents and restricted cash − beginning of period |
|
440 |
|
390 |
|
|
Effect of exchange rate changes on cash balances |
|
19 |
|
19 |
|
|
Cash, cash equivalents and restricted cash − end of period |
|
$ 563 |
|
$ 442 |
|
|
|
|
|
|
|
|
|
Consolidated Statement of Cash Flows |
|
|
|
|
|
|
For the Year Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
||
|
(In millions) |
|
|
|||
|
|
|
|
2023 |
|
2022 |
|
Operating activities |
|
|
|
|
|
|
Net income (loss) |
|
$ 48 |
|
$ (311) |
|
|
Depreciation |
|
393 |
|
365 |
|
|
Amortization |
|
23 |
|
23 |
|
|
Amortization of deferred financing charges |
|
5 |
|
5 |
|
|
Write-off of deferred financing costs |
|
1 |
|
|
|
|
Earnings of affiliates, net of dividends received |
|
11 |
|
23 |
|
|
Stock compensation expense |
|
26 |
|
19 |
|
|
Deferred income taxes |
|
(104) |
|
153 |
|
|
Pension expense, net |
|
3 |
|
(1) |
|
|
Impairment of goodwill |
|
|
|
191 |
|
|
Change in working capital |
|
70 |
|
199 |
|
|
Change in other noncurrent assets and liabilities |
|
11 |
|
9 |
|
|
Other, net |
|
(11) |
|
(26) |
|
|
Net cash provided by operating activities |
|
476 |
|
649 |
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(501) |
|
(440) |
|
|
Proceeds from sale of property, plant and equipment |
|
2 |
|
3 |
|
|
Acquisition of business, net of cash acquired |
|
|
|
(1) |
|
|
Purchases of marketable securities |
|
|
|
(15) |
|
|
Proceeds from sales of marketable securities |
|
|
|
30 |
|
|
Settlements of undesignated derivatives |
|
(13) |
|
(8) |
|
|
Other, net |
|
(16) |
|
5 |
|
|
Net cash used in investing activities |
|
(528) |
|
(426) |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
Net change in short-term debt |
|
(30) |
|
33 |
|
|
Proceeds from long-term debt |
|
458 |
|
2 |
|
|
Repayment of long-term debt |
|
(209) |
|
(24) |
|
|
Deferred financing payments |
|
(9) |
|
|
|
|
Dividends paid to common stockholders |
|
(58) |
|
(58) |
|
|
Repurchases of common stock |
|
|
|
(25) |
|
|
Distributions to noncontrolling interests |
|
(10) |
|
(9) |
|
|
Contributions from redeemable noncontrolling interests |
|
22 |
|
51 |
|
|
Payments to acquire noncontrolling interests |
|
|
|
(4) |
|
|
Other, net |
|
(4) |
|
(8) |
|
|
Net cash provided by (used in) financing activities |
|
160 |
|
(42) |
|
|
|
|
|
|
|
|
|
Net increase in cash, cash equivalents and restricted cash |
|
108 |
|
181 |
|
|
Cash, cash equivalents and restricted cash − beginning of period |
|
442 |
|
287 |
|
|
Effect of exchange rate changes on cash balances |
|
13 |
|
(26) |
|
|
Cash, cash equivalents and restricted cash − end of period |
|
$ 563 |
|
$ 442 |
|
|
|
|
|
|
|
|
|
Reconciliation of Net Cash Provided By Operating Activities to |
|||||
|
Free Cash Flow (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|||
|
(In millions) |
|
|
|||
|
|
|
2023 |
|
2022 |
|
|
Net cash provided by operating activities |
|
$ 278 |
|
$ 342 |
|
|
Purchases of property, plant and equipment |
|
(142) |
|
(140) |
|
|
Free cash flow |
|
$ 136 |
|
$ 202 |
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|||
|
|
|
|
|||
|
|
|
2023 |
|
2022 |
|
|
Net cash provided by operating activities |
|
$ 476 |
|
$ 649 |
|
|
Purchases of property, plant and equipment |
|
(501) |
|
(440) |
|
|
Free cash flow |
|
$ (25) |
|
$ 209 |
|
|
|
|
|
|
|
|
Segment Sales and Segment EBITDA (Unaudited) |
|
|
||
|
For the Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||
|
(In millions) |
|
|
||
|
|
|
2023 |
|
2022 |
|
Sales |
|
|
|
|
|
Light Vehicle |
|
$ 923 |
|
$ 1,030 |
|
Commercial Vehicle |
|
509 |
|
504 |
|
Off-Highway |
|
762 |
|
740 |
|
Power Technologies |
|
300 |
|
281 |
|
Total Sales |
|
$ 2,494 |
|
$ 2,555 |
|
|
|
|
|
|
|
Segment EBITDA |
|
|
|
|
|
Light Vehicle |
|
$ 22 |
|
$ 34 |
|
Commercial Vehicle |
|
13 |
|
5 |
|
Off-Highway |
|
106 |
|
113 |
|
Power Technologies |
|
19 |
|
23 |
|
Total Segment EBITDA |
|
160 |
|
175 |
|
Corporate expense and other items, net |
|
(4) |
|
1 |
|
Adjusted EBITDA |
|
$ 156 |
|
$ 176 |
|
|
|
|
|
|
|
Segment Sales and Segment EBITDA |
|
|
|
|
|
For the Year Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
||
|
(In millions) |
|
|
||
|
|
|
2023 |
|
2022 |
|
Sales |
|
|
|
|
|
Light Vehicle |
|
$ 4,035 |
|
$ 4,090 |
|
Commercial Vehicle |
|
2,092 |
|
1,979 |
|
Off-Highway |
|
3,185 |
|
2,946 |
|
Power Technologies |
|
1,243 |
|
1,141 |
|
Total Sales |
|
$ 10,555 |
|
$ 10,156 |
|
|
|
|
|
|
|
Segment EBITDA |
|
|
|
|
|
Light Vehicle |
|
$ 212 |
|
$ 158 |
|
Commercial Vehicle |
|
87 |
|
43 |
|
Off-Highway |
|
465 |
|
404 |
|
Power Technologies |
|
89 |
|
94 |
|
Total Segment EBITDA |
|
853 |
|
699 |
|
Corporate expense and other items, net |
|
(8) |
|
1 |
|
Adjusted EBITDA |
|
$ 845 |
|
$ 700 |
|
|
|
|
|
|
|
Reconciliation of Segment and Adjusted EBITDA to Net Loss (Unaudited) |
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||
|
(In millions) |
|
|
||
|
|
|
2023 |
|
2022 |
|
Segment EBITDA |
|
$ 160 |
|
$ 175 |
|
Corporate expense and other items, net |
|
(4) |
|
1 |
|
Adjusted EBITDA |
|
156 |
|
176 |
|
Depreciation |
|
(106) |
|
(95) |
|
Amortization |
|
(6) |
|
(6) |
|
Non-service cost components of pension and OPEB costs |
|
(3) |
|
(4) |
|
Restructuring charges, net |
|
(4) |
|
|
|
Stock compensation expense |
|
(7) |
|
(6) |
|
Strategic transaction expenses |
|
(1) |
|
(2) |
|
Distressed supplier costs |
|
(18) |
|
|
|
Amounts attributable to previously divested/closed operations |
|
|
|
(2) |
|
Other items |
|
|
|
1 |
|
Earnings before interest and income taxes |
|
11 |
|
62 |
|
Interest income |
|
3 |
|
5 |
|
Interest expense |
|
40 |
|
33 |
|
Earnings (loss) before income taxes |
|
(26) |
|
34 |
|
Income tax expense |
|
3 |
|
217 |
|
Equity in earnings (loss) of affiliates |
|
(15) |
|
5 |
|
Net loss |
|
$ (44) |
|
$ (178) |
|
|
|
|
|
|
|
Reconciliation of Segment and Adjusted EBITDA to Net Income (Loss) |
|
|
|
|
|
For the Year Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
||
|
(In millions) |
|
|
||
|
|
|
2023 |
|
2022 |
|
Segment EBITDA |
|
$ 853 |
|
$ 699 |
|
Corporate expense and other items, net |
|
(8) |
|
1 |
|
Adjusted EBITDA |
|
845 |
|
700 |
|
Depreciation |
|
(393) |
|
(365) |
|
Amortization |
|
(23) |
|
(23) |
|
Non-service cost components of pension and OPEB costs |
|
(13) |
|
(7) |
|
Restructuring charges, net |
|
(25) |
|
1 |
|
Stock compensation expense |
|
(26) |
|
(19) |
|
Strategic transaction expenses |
|
(5) |
|
(8) |
|
Distressed supplier costs |
|
(44) |
|
|
|
Amounts attributable to previously divested/closed operations |
|
|
|
(2) |
|
Impairment of goodwill |
|
|
|
(191) |
|
Earnings before interest and income taxes |
|
316 |
|
86 |
|
Loss on extinguishment of debt |
|
(1) |
|
|
|
Interest income |
|
17 |
|
11 |
|
Interest expense |
|
154 |
|
128 |
|
Earnings (loss) before income taxes |
|
178 |
|
(31) |
|
Income tax expense |
|
121 |
|
284 |
|
Equity in earnings (loss) of affiliates |
|
(9) |
|
4 |
|
Net income (loss) |
|
$ 48 |
|
$ (311) |
|
|
|
|
|
|
|
|
Reconciliation of Net Loss Attributable to the Parent Company to |
|
|
|
|
|
|
Adjusted Net Loss Attributable to the Parent Company and |
|
|
|
|
|
|
Diluted Adjusted EPS (Unaudited) |
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
||
|
|
|
|
|
||
|
|
|
|
2023 |
|
2022 |
|
Net loss attributable to the parent company |
|
$ (39) |
|
$ (179) |
|
|
Items impacting loss before income taxes: |
|
|
|
|
|
|
|
Amortization |
|
5 |
|
5 |
|
|
Restructuring charges, net |
|
3 |
|
|
|
|
Strategic transaction expenses |
|
1 |
|
|
|
|
Distressed supplier costs |
|
18 |
|
|
|
|
Other items |
|
(1) |
|
2 |
|
Items impacting income taxes: |
|
|
|
|
|
|
|
Net income tax benefit on items above |
|
6 |
|
2 |
|
|
Income tax expense (benefit) attributable to various discrete tax matters |
|
(4) |
|
155 |
|
Adjusted net loss attributable to the parent company |
|
$ (11) |
|
$ (15) |
|
|
|
|
|
|
|
|
|
Diluted shares - as reported |
|
144.5 |
|
143.4 |
|
|
Adjusted diluted shares |
|
144.5 |
|
143.4 |
|
|
|
|
|
|
|
|
|
Diluted adjusted EPS |
|
$ (0.08) |
|
$ (0.10) |
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income (Loss) Attributable to the Parent Company to |
|
|
|||
|
Adjusted Net Income Attributable to the Parent Company and |
|
|
|
|
|
|
Diluted Adjusted EPS (Unaudited) |
|
|
|
|
|
|
For the Year Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
Year Ended |
||
|
|
|
|
|
||
|
|
|
|
2023 |
|
2022 |
|
Net income (loss) attributable to the parent company |
|
$ 38 |
|
$ (242) |
|
|
Items impacting income (loss) before income taxes: |
|
|
|
|
|
|
|
Amortization |
|
20 |
|
20 |
|
|
Restructuring charges, net |
|
24 |
|
(1) |
|
|
Strategic transaction expenses |
|
5 |
|
8 |
|
|
Distressed supplier costs |
|
44 |
|
|
|
|
Impairment of goodwill |
|
|
|
118 |
|
|
Other items |
|
1 |
|
2 |
|
Items impacting income taxes: |
|
|
|
|
|
|
|
Net income tax expense on items above |
|
(20) |
|
(8) |
|
|
Income tax expense attributable to various discrete tax matters |
|
10 |
|
157 |
|
Adjusted net income attributable to the parent company |
|
$ 122 |
|
$ 54 |
|
|
|
|
|
|
|
|
|
Diluted shares - as reported |
|
144.6 |
|
143.6 |
|
|
Adjusted diluted shares |
|
144.6 |
|
144.3 |
|
|
|
|
|
|
|
|
|
Diluted adjusted EPS |
|
$ 0.84 |
|
$ 0.37 |
|
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