Dana Inc. is reporting a multimillion-dollar loss for the third quarter, steadiness in sales and an increase in free cash flow.
Dana reported a net loss of $88 million, a $136 million plunge from the same period a year ago and a dive from its second-quarter net income of $8 million. Dana attributes the loss to three headwinds in the commercial vehicle segment — higher interest rates, the negative impact of cost inflation and ongoing customer production inefficiencies, according to a statement. These headwinds are similar to those reported last quarter.
The supplier, headquartered in Maumee, Ohio, produces axles, driveshafts, gaskets, electrodynamics and other vehicle components.
Other results are more steady. Dana posted third-quarter sales of $2.54 billion, a slight increase from $2.2 billion for the same period a year ago. This is also similar to second-quarter results, which saw sales of $2.59 billion.
Dana leadership said the company has a healthy balance of traditional and electric vehicle products in its business backlog in an earnings call following the results release. The call also announced Dana has sourced for the next generation of the Jeep Wrangler and Gladiator programs, a continuance of an 80-year-plus partnership with Stellantis.
Free cash flow for the third quarter is a bright spot compared to last year, marking a $247 million increase over 2021. The increase is attributed to improved working capital management. However, reported at $77 million for the third quarter, free cash flow decreased 54 percent from the second quarter.
Adjusted earnings before interest, taxes, depreciation and amortization fell about 8.5 percent to $192 million compared to the same period in 2021. Dana reported profit conversions on higher sales were offset by nonmaterial inflation and production issues caused by volatile customer demand schedules, according to the statement.
The auto supplier did not change its 2022 earnings forecast from last quarter, which is at about 75 cents per share.
Dana ranks No. 28 on the Automotive News list of the top 100 global suppliers, with worldwide sales to automakers of $8.9 billion in 2021.