Dana says strengthening end-market demand, most notably in off-highway and commercial vehicles, combined with benefits from currency translation will drive an additional 4% in expected sales growth this year.
Due to improved market conditions combined with sales from the new business backlog, 2018 sales are now expected to grow 10%, or around US$700m, compared with last year.
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Adjusted EBITDA for 2018 is now expected to increase by around US$145m, or 80 basis points of margin improvement, when compared with 2017.
“Our continued strong financial performance, driven by our organic and inorganic sales growth and the execution of our synergy plan related to recent acquisitions, has provided us with increased confidence in our outlook for 2018 – and further solidified our trajectory toward achieving our long-term targets,” said Dana EVP and CFO, Jonathan Collins.
Yesterday, (19 March), the British supplier GKN said its proposed combination with Dana, would see the business being combined on the New York Stock Exchange and would hold a standard listing on the London Stock Exchange.
Updated 2018 Full-year Financial Targets:
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By GlobalData- Sales of US$7.75bn to US$8.05bn
- Adjusted EBITDA of US$950m to US$1.010bn, an implied adjusted EBITDA margin of approximately 12.4%
- Operating cash flow of around 7.5% of sales;
- Capital spending of approximately 4% of sales
- Free cash flow of around 3.5% of sales.
