Dana reports record sales backlog, earnings improve

Dana Inc. said it generated a record sales backlog of $900 million in the fourth quarter, an increase of $100 million from the previous three-year backlog the company reported in early 2022.

A transition to electrification dominated the supplier's new business, with the backlog percentage attributed to EVs rising 30 percent to a total of 65 percent.

Dana CEO James Kamsickas said in a call with investors Tuesday that these moves "are a differentiator that continues to position Dana for success as the world evolves to electrification."

The supplier's adjusted earnings before interest, taxes, depreciation and amortization rose 49 percent to $176 million, a growth in margin "primarily driven by higher sales volumes and cost recoveries," the company said in a statement.

These gains were somewhat offset by ongoing industry challenges, including rising inflation and continued supply chain inefficiencies, CFO Timothy Kraus said on the Tuesday call.

The EV transition contributed to "heavily elevated levels of launch costs" in the fourth quarter, Kraus said, including new programs and increased production.

Dana reported a net loss of $179 million, a fall from a net income of $25 million for the same period in 2021. A one-time $155 million non-cash accounting charge largely impacted the steep dive.

The company also announced several new partnerships, including supplying battery cooling plates and electronics cooling for Jaguar Land Rover's next-generation EV platforms plus e-axle suspension and battery cooling plates for General Motors' BrightDrop commercial vehicles.

Dana is preparing to manage roughly 120 launches of both EV and internal combustion engine products in 2023, including the GM Ultium program and the redesigned Jeep Wrangler and Gladiator. Executives offered a revenue target range of $10.35 billion to $10.85 billion and a core earnings range of $750 million to $850 million.

Shares in Dana slipped 13 percent to $16.33 in midday trading Tuesday.

Dana, based near Toledo, Ohio, ranks No. 28 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $8.96 billion in 2021.