Dana Q4 earnings: Record sales backlog, earnings improve, revenue rises
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.