MAUMEE, Ohio—Dana Inc. continues to reduce operating costs and improve working capital in response to lower demand for its sealing, thermal and electrodynamic parts and technologies.
The company's latest steps include "the aggressive elimination of discretionary spending and intense flexing of conversion costs across its global manufacturing facilities, including its dedicated aftermarket locations," according to a news release.
The actions were taken in addition to "compensation reductions" for all salaried employees and the board of directors.
"These additional cost-flexing actions are aiding us in aligning our cost structure with the reduced production volumes across the mobility markets," James Kamsickas, Dana chairman and CEO, said in a statement. "We continue to prioritize the safety of our employees and service to our customers, and we have the operational flexibility needed to be responsive during this difficult situation."
Dana also said it entered into a new credit facility and amended its existing one to provide access to additional liquidity should the company need it.
Further, the company said it temporarily will suspend its common stock dividend.
"We have taken these actions out of an abundance of caution to guarantee our access to liquidity. The strength of our balance sheet and capital structure offers us flexibility and security as we navigate through these challenging times," Jonathan Collins, executive vice president and CFO.
Dana had about $650 million in cash and marketable securities as of March 31. The company also has $679 million available on its committed revolving credit facility, as well as $500 million on its new bridge facility for total liquidity of more than $1.8 billion.
The company also notes that it has no meaningful debt maturities before 2024.