Dana has unveiled preliminary sales for the year of around US$6bn and after adjusting for currency translation of more than US$500m and the divestiture of the company’s Venezuela operations, full-year 2015 sales were comparable with a year ago.
Contributions from new business wins and strong North American vehicle markets largely offset weaker demand in the global off-highway and Brazilian markets.
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Adjusted EBITDA for the year of around US$655m or 10.9% of sales, was 40 basis points lower than 2014.
This was due largely to what Dana describes as “supply-chain inefficiencies” in the company’s commercial vehicle segment, which led to increased costs and lower sales with a significant, but unnamed, customer.
The company continued to generate strong free cash flow of around US$150m for the year, including major capital investment for new programme launches.
Dana also repurchased US$311m of common stock in 2015, completing its US$1.4bn share repurchase authorisation.
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By GlobalDataWhile overall demand across served end markets is expected to be relatively flat in 2016, increased sales from new customer programme launches are expected to provide a partial offset to anticipated currency headwinds.
Adjusted EBITDA margin is expected to be comparable or slightly above last year, while free cash flow is expected to remain strong.
“Despite the challenging economic environment in some of our markets, our Light Vehicle Driveline, Off-Highway Driveline, and Power Technologies segments each achieved organic sales growth and improved year-over-year margin,” said Dana president and CEO, James Kamsickas.
“Our commercial vehicle segment was challenged this past year due to a major supplier transition and while adversely impacting our 2015 performance, this completed initiative has better positioned this business for future success.
“Looking ahead we successfully retained our key replacement programmes while continuing to grow our sales backlog with new programmes in all of our businesses – an indication our technology, products and customer focus continues to support the needs of our customers around the world.”
