Dana posts higher sales, lower profits for 2019

MAUMEE, Ohio—Revenue was up, but profits were down for automobile parts maker Dana Inc. last year.

The Maumee-based company posted net income of $226 million, or $1.56 per diluted share, on revenue of $8.62 billion for 2019. That compares with a profit of $427 million, or $2.91 per diluted share, on revenue of $8.14 billion in 2018.

Yearly earnings took a hit as the company recorded one-time charges of $259 million for what Dana said were "discretionary pension transfers."

CEO James Kamsickas pointed to the company's year-over-year growth in revenue, adjusted earnings and adjusted free cash flow as wins for Dana in 2019.

"Over the past year, the Dana team achieved more than $1 billion of adjusted EBITDA for the first time in the history of the company, while successfully integrating the Graziano and Fairfield business, Dana's largest acquisition in over two decades," he said in a statement.

Fourth quarter results saw Dana earn $85 million, or 58 cents per diluted share, on revenue of $1.99 billion. That compares with a profit of $100 million, or 69 cents per diluted share, on revenue of $1.97 billion for the fourth quarter of 2018.

"Despite expected softer demand in our heavy-vehicle markets, we continue to successfully manage through this cycle and execute our strategic plan," Chief Financial Officer Jonathan Collins said in a statement. "We have positioned the company for significant adjusted free cash flow growth this year, and our strong sales backlog and multi-market focus will buffer end-market demand."

Dana expects to earn $2.65 to $3.15 per diluted share in 2020 on sales of $8.25 billion to $8.75 billion, the company said.

The company $1.02 billion in earnings before interest, taxes, depreciation and amortization for the year is the first time Dana has reached $1 billion in that metric. Stock analysts look at adjusted EBITDA as a key indicator of a company's performance.

"This continued success is a direct result of our strong backlog and accretive acquisitions," the CEO said on a conference call to discuss results.