DAN
$16.04
Dana
($.35)
(2.14%)
Earnings Details
3rd Quarter September 2022
Thursday, October 27, 2022 6:59:00 AM
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Summary

Dana Reaffirms

Dana (DAN) reported 3rd Quarter September 2022 earnings of $0.24 per share on revenue of $2.5 billion. The consensus earnings estimate was $0.21 per share on revenue of $2.5 billion. Revenue grew 15.0% on a year-over-year basis.

The company said it continues to expect 2022 earnings of $0.60 to $0.90 per share on revenue of $10.00 billion to $10.20 billion. The current consensus earnings estimate is $0.68 per share on revenue of $10.06 billion for the year ending December 31, 2022.

Dana Holding Corp provides technology driveline, sealing and thermal-management products for vehicle manufacturers in the light vehicle, medium/heavy vehicle and off-highway markets.

Results
Reported Earnings
$0.24
Earnings Whisper
-
Consensus Estimate
$0.21
Reported Revenue
$2.54 Bil
Revenue Estimate
$2.51 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Dana Incorporated Reports Strong Third-quarter 2022 Financial Results with Higher Sales and Free Cash Flow, Reaffirms Full-year Financial Targets

Key Highlights

  • Sales of $2.54 billion, an increase of $331 million
  • Net loss attributable to Dana of $88 million; includes a non-cash goodwill impairment charge
  • Diluted EPS of $(0.61); diluted adjusted EPS of $0.24
  • Adjusted EBITDA of $192 million
  • Free cash flow of $77 million, a year-over-year increase of $247 million
  • Wins 8th PACE Award for electric-vehicle systems integration

MAUMEE, Ohio, Oct. 27, 2022 /PRNewswire/ -- Dana Incorporated (NYSE: DAN) today announced strong financial results for the third quarter of 2022.

"Dana generated solid earnings and free cash flow again this quarter as end-market demand remained strong despite ongoing supply and production disruptions impacting the global mobility industry," said James Kamsickas, Dana chairman and chief executive officer. 

"While record inflationary costs continue to be a challenge, I am very proud of the perseverance and dedication our team has displayed while executing our enterprise-wide transformation that has led to significant new business growth in both traditional and electric-vehicle solutions.  Dana is well positioned to finish the year strong and capitalize on new opportunities across our markets once this environment begins to stabilize."

Third-quarter 2022 Financial Results

Sales for the third quarter of 2022 totaled $2.54 billion, compared with $2.20 billion in the same period of 2021, a $331 million improvement driven by strong customer demand across all our end markets and the recovery of commodity costs, partially offset by foreign currency translation.

Adjusted EBITDA for the third quarter of 2022 was $192 million, compared with $210 million for the same period in 2021.  Profit conversion on higher sales in the third quarter of 2022 continued to be more than offset by non-material inflation as well as production inefficiencies driven by volatile customer demand schedules.

The net loss attributable to Dana was $88 million or $0.61 per share, compared with net income of $48 million or $0.33 per share in the third quarter of 2021. The loss was driven by a non-cash goodwill impairment charge in the commercial-vehicle segment resulting from increased interest rates as well as the negative impact of cost inflation and customer-driven production inefficiencies.

Adjusted net income attributable to Dana was $34 million and diluted adjusted earnings per share were $0.24 for the third quarter of 2022, compared with an adjusted net income of $60 million and $0.41 per share in 2021.

Operating cash flow in the third quarter of 2022 was $171 million, compared with $75 million in the same period of 2021. 

Free cash flow was $77 million, compared with a use of $170 million in the third quarter of 2021. The improvement was driven by improved working capital management.

The company reaffirmed its full-year 2022 financial targets.

2022 Financial Targets1

  • Sales of $10 to $10.2 billion;
  • Adjusted EBITDA of $700 to $740 million, an implied adjusted EBITDA margin of approximately 7.1 percent at the midpoint of the range;
  • Diluted adjusted EPS of $0.60 to $0.90;
  • Operating cash flow of approximately 6.2 to 6.5 percent of sales; and
  • Free cash flow of approximately 1.8 to 2.2 percent of sales.

1Net income and diluted EPS guidance are not provided, as discussed below in Non-GAAP Financial Information.

Dana to Host Conference Call at 9 a.m. Thursday, Oct. 27

Dana will discuss its third-quarter results in a conference call at 9 a.m. EDT on Thursday, Oct. 27.  Participants may listen to the audio portion of the conference call either through audio streaming online or by telephone.  Slide viewing is available online via a link provided on the Dana investor website: www.dana.com/investors.

U.S. and Canadian locations should dial 1-888-330-2502 and international locations should call 1-240-789-2713.  Please enter conference I.D. 2476721 and provide your name and company affiliation. Phone registration will be available beginning at 8:30 a.m. EDT.

A webcast replay will also be available after 5 p.m. EDT and may be accessed via Dana's investor website.

Non-GAAP Financial Information

Adjusted EBITDA is a non-GAAP financial measure, which we have defined as net income (loss) before interest, income taxes, depreciation, amortization, equity grant expense, restructuring expense, non-service cost components of pension and other postretirement benefit costs and other adjustments not related to our core operations (gain/loss on debt extinguishment, pension settlements, divestitures, impairment, etc.). Adjusted EBITDA is a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. We use adjusted EBITDA in assessing the effectiveness of our business strategies, evaluating and pricing potential acquisitions and as a factor in making incentive compensation decisions. In addition to its use by management, we also believe adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate financial performance of our company relative to other Tier 1 automotive suppliers. Adjusted EBITDA should not be considered a substitute for earnings (loss) before income taxes, net income (loss) or other results reported in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Adjusted net income (loss) attributable to the parent company is a non-GAAP financial measure which we have defined as net income (loss) attributable to the parent company, excluding any discrete income tax items, restructuring charges, amortization expense and other adjustments not related to our core operations (as used in adjusted EBITDA), net of any associated income tax effects. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to net income attributable to the parent company reported by other companies. Adjusted net income (loss) attributable to the parent company is neither intended to represent nor be an alternative measure to net income (loss) attributable to the parent company reported in accordance with GAAP.

Diluted adjusted EPS is a non-GAAP financial measure which we have defined as adjusted net income (loss) attributable to the parent company divided by adjusted diluted shares.  We define adjusted diluted shares as diluted shares as determined in accordance with GAAP based on adjusted net income (loss) attributable to the parent company.  This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to EPS reported by other companies.  Diluted adjusted EPS is neither intended to represent nor be an alternative measure to diluted EPS reported in accordance with GAAP.

Free cash flow is a non-GAAP financial measure which we have defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment.  Adjusted free cash flow is a non-GAAP financial measure which we have defined as net cash provided by (used in) operating activities excluding discretionary pension contributions less purchases of property, plant and equipment.  We believe these measures are useful to investors in evaluating the operational cash flow of the company inclusive of the spending required to maintain the operations.  Free cash flow and adjusted free cash flow are not intended to represent nor be an alternative to the measure of net cash provided by (used in) operating activities reported in accordance with GAAP.  Free cash flow and adjusted free cash flow may not be comparable to similarly titled measures reported by other companies.

We have not provided reconciliations of our adjusted EBITDA and diluted adjusted EPS outlook to the most comparable GAAP measures of net income and diluted EPS. Providing net income and diluted EPS guidance is potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items that are included in net income and diluted EPS, including restructuring actions, asset impairments, and income tax valuation adjustments. Reconciliations of these non-GAAP measures with the most comparable GAAP measures for historical periods are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance. Please reference the "Non-GAAP Financial Information" accompanying our quarterly earnings conference call presentations on our website at www.dana.com/investors for our GAAP results and the reconciliations of these measures, were used, to the comparable GAAP measures.

Forward-Looking Statements

Certain statements and projections contained in this news release are, by their nature, forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are based on our current expectations, estimates, and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change.  Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," and similar expressions, and variations or negatives of these words.  These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties, and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. 

Dana's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss important risk factors that could affect our business, results of operations and financial condition.  The forward-looking statements in this news release speak only as of this date. Dana does not undertake any obligation to revise or update publicly any forward-looking statement for any reason.

About Dana Incorporated

Dana is a leader in the design and manufacture of highly efficient propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe. The company is shaping sustainable progress through its conventional and clean-energy solutions that support nearly every vehicle manufacturer with drive and motion systems; electrodynamic technologies, including software and controls; and thermal, sealing, and digital solutions.

Based in Maumee, Ohio, USA, the company reported sales of $8.9 billion in 2021 with 40,000 people in 31 countries across six continents. Founded in 1904, Dana was named one of "America's Most Responsible Companies 2022" by Newsweek for its emphasis on sustainability and social responsibility. The company is driven by a high-performance culture that focuses on valuing others, inspiring innovation, growing responsibly, and winning together, earning it global recognition as a top employer. Learn more at dana.com.

 DANA INCORPORATED 






 Consolidated Statement of Operations (Unaudited) 






 For the Three Months Ended September 30, 2022 and 2021 











Three Months Ended

 (In millions, except per share amounts) 


September 30,




2022


2021

 Net sales 



$      2,535


$      2,204

 Costs and expenses 





     Cost of sales 


2,332


1,998

     Selling, general and administrative expenses 


114


103

     Amortization of intangibles 


3


4

     Restructuring charges, net 


(1)


1

 Impairment of goodwill 


(191)



 Other income (expense), net 


3


(4)

 Earnings (loss) before interest and income taxes 


(101)


94

 Interest income 


2


2

 Interest expense 


32


31

 Earnings (loss) before income taxes 


(131)


65

 Income tax expense 


31


20

 Equity in earnings (loss) of affiliates 


(1)


5

 Net income (loss) 


(163)


50

     Less: Noncontrolling interests net income 


4


4

     Less: Redeemable noncontrolling interests net loss 


(79)


(2)

 Net income (loss) attributable to the parent company 


$          (88)


$            48







 Net income (loss) per share available to common stockholders 





    Basic 



$       (0.61)


$        0.33

    Diluted 



$       (0.61)


$        0.33







 Weighted-average shares outstanding - Basic 


143.4


144.8

 Weighted-average shares outstanding - Diluted 


143.4


146.2



















 DANA INCORPORATED 






 Consolidated Statement of Operations (Unaudited) 






 For the Nine Months Ended September 30, 2022 and 2021 















Nine Months Ended

 (In millions, except per share amounts) 


September 30,




2022


2021

 Net sales 



$      7,601


$      6,672

 Costs and expenses 





     Cost of sales 


7,018


5,963

     Selling, general and administrative expenses 


374


348

     Amortization of intangibles 


10


11

     Restructuring charges, net 


(1)


2

 Impairment of goodwill 


(191)



 Other income (expense), net 


15


(33)

 Earnings before interest and income taxes 


24


315

 Loss on extinguishment of debt 




(24)

 Interest income 


6


6

 Interest expense 


95


99

 Earnings (loss) before income taxes 


(65)


198

 Income tax expense 


67


56

 Equity in earnings (loss) of affiliates 


(1)


29

 Net income (loss) 


(133)


171

     Less: Noncontrolling interests net income 


11


9

     Less: Redeemable noncontrolling interests net loss 


(81)


(10)

 Net income (loss) attributable to the parent company 


$          (63)


$         172







 Net income (loss) per share available to common stockholders 





    Basic 



$       (0.44)


$        1.19

    Diluted 



$       (0.44)


$        1.17







 Weighted-average shares outstanding - Basic 


143.6


145.0

 Weighted-average shares outstanding - Diluted 


143.6


146.4



















 DANA INCORPORATED 






 Consolidated Statement of Comprehensive Income (Unaudited) 


 For the Three Months Ended September 30, 2022 and 2021 















Three Months Ended

 (In millions) 


September 30,






2022


2021

 Net income (loss) 


$        (163)


$            50

 Other comprehensive income (loss), net of tax: 





     Currency translation adjustments


(82)


(25)

     Hedging gains and losses


1


(9)

     Defined benefit plans


1


4

     Other comprehensive loss


(80)


(30)

Total comprehensive income (loss)


(243)


20

     Less: Comprehensive income attributable to noncontrolling interests


(1)


(4)

     Less: Comprehensive loss attributable to redeemable noncontrolling interests


89


4

Comprehensive income (loss) attributable to the parent company


$        (155)


$            20



















 DANA INCORPORATED 






 Consolidated Statement of Comprehensive Income (Unaudited) 


 For the Nine Months Ended September 30, 2022 and 2021 















Nine Months Ended

 (In millions) 


September 30,






2022


2021

 Net income (loss) 


$        (133)


$         171

 Other comprehensive income (loss), net of tax: 





     Currency translation adjustments


(134)


(11)

     Hedging gains and losses


(2)


(10)

     Defined benefit plans


5


11

     Other comprehensive loss


(131)


(10)

Total comprehensive income (loss)


(264)


161

     Less: Comprehensive (income) loss attributable to noncontrolling interests


(6)


2

     Less: Comprehensive loss attributable to redeemable noncontrolling interests


97



Comprehensive income (loss) attributable to the parent company


$        (173)


$         163







 DANA INCORPORATED 

 Consolidated Balance Sheet (Unaudited) 

 As of September 30, 2022 and December 31, 2021 


 (In millions, except share and per share amounts) 


September 30,


December 31,



2022


2021

Assets 





 Current assets 





 Cash and cash equivalents 


$                371


$                268

 Marketable securities 


13


17

 Accounts receivable 





    Trade, less allowance for doubtful accounts of $11 in 2022 and $7 in 2021 


1,507


1,321

    Other 


252


220

 Inventories 


1,603


1,564

 Other current assets 


208


196

         Total current assets 


3,954


3,586

 Goodwill 


246


482

 Intangibles 


200


233

 Deferred tax assets 


613


580

 Other noncurrent assets 


181


131

 Investments in affiliates 


128


174

 Operating lease assets 


262


247

 Property, plant and equipment, net 


2,078


2,199

         Total assets 


$             7,662


$             7,632








Liabilities and equity 





 Current liabilities 





 Short-term debt 


$                230


$                   23

 Current portion of long-term debt 


7


8

 Accounts payable 


1,839


1,571

 Accrued payroll and employee benefits 


209


184

 Taxes on income 


67


41

 Current portion of operating lease liabilities 


37


43

 Other accrued liabilities 


269


304

         Total current liabilities 


2,658


2,174

 Long-term debt, less debt issuance costs of $22 in 2022 and $26 in 2021 


2,314


2,386

 Noncurrent operating lease liabilities 


229


209

 Pension and postretirement obligations 


350


398

 Other noncurrent liabilities 


244


292

         Total liabilities 


5,795


5,459

 Commitments and contingencies 







 Redeemable noncontrolling interests 




196


198

 Parent company stockholders' equity 





     Preferred stock, 50,000,000 shares authorized, $0.01 par value, 





         no shares outstanding 


-


-

     Common stock, 450,000,000 shares authorized, $0.01 par value, 





         143,353,224 and 144,238,660 shares outstanding 


2


2

     Additional paid-in capital 


2,440


2,427

     Retained earnings 


491


662

     Treasury stock, at cost (13,469,842 and 11,661,591 shares) 


(216)


(184)

     Accumulated other comprehensive loss 


(1,095)


(985)

     Total parent company stockholders' equity 


1,622


1,922

 Noncontrolling interests 


49


53

         Total equity 


1,671


1,975

         Total liabilities, redeemable noncontrolling interests and equity 


$             7,662


$             7,632



















 DANA INCORPORATED 






 Consolidated Statement of Cash Flows (Unaudited) 





 For the Three Months Ended September 30, 2022 and 2021 













Three Months Ended

 (In millions) 


September 30,




2022


2021

 Operating activities 





 Net income (loss) 


$        (163)


$            50

 Depreciation 


88


92

 Amortization 


6


6

 Amortization of deferred financing charges 


1


2

 Earnings of affiliates, net of dividends received 




(4)

 Stock compensation expense 


5


6

 Deferred income taxes 


(14)


36

 Impairment of goodwill 


191



 Change in working capital 


63


(262)

 Other, net 


(6)


(1)

 Net cash provided by (used in) operating activities 


171


(75)







 Investing activities 





 Purchases of property, plant and equipment 


(94)


(95)

 Investments in affiliates 




(23)

 Purchases of marketable securities 


(2)


(9)

 Proceeds from sales of marketable securities 




30

 Proceeds from maturities of marketable securities 


8


14

 Settlements of undesignated derivatives 


1


2

 Other, net 


5


1

 Net cash used in investing activities 


(82)


(80)







 Financing activities 





 Net change in short-term debt 


(2)


49

 Proceeds from long-term debt 




2

 Repayment of long-term debt 


(14)


(2)

 Dividends paid to common stockholders 


(14)


(15)

 Repurchases of common stock 




(23)

 Distributions to noncontrolling interests 


(6)


(8)

 Contributions from redeemable noncontrolling interests 


23


3

 Deconsolidation of non-wholly owned subsidiary 




(6)

 Other, net 


(1)



 Net cash used in financing activities 


(14)









 Net increase (decrease) in cash, cash equivalents and restricted cash 


75


(155)

 Cash, cash equivalents and restricted cash - beginning of period 


340


403

 Effect of exchange rate changes on cash balances 


(25)


(9)

 Cash, cash equivalents and restricted cash - end of period 


$         390


$         239



















 DANA INCORPORATED 






 Consolidated Statement of Cash Flows (Unaudited) 





 For the Nine Months Ended September 30, 2022 and 2021 













Nine Months Ended

 (In millions) 


September 30,




2022


2021

 Operating activities 





 Net income (loss) 


$        (133)


$         171

 Depreciation 


270


272

 Amortization 


17


18

 Amortization of deferred financing charges 


4


5

 Redemption premium on debt 




21

 Write-off of deferred financing costs 




3

 Earnings of affiliates, net of dividends received 


29


(11)

 Stock compensation expense 


13


15

 Deferred income taxes 


(56)


8

 Impairment of goodwill 


191



 Change in working capital 


(21)


(501)

 Other, net 


(7)


18

 Net cash provided by operating activities 


307


19







 Investing activities 





 Purchases of property, plant and equipment 


(300)


(228)

 Acquisition of businesses, net of cash acquired 


(1)


(18)

 Investments in affiliates 




(23)

 Proceeds from sale of subsidiary, net of cash disposed 




(4)

 Purchases of marketable securities 


(15)


(25)

 Proceeds from sales of marketable securities 




30

 Proceeds from maturities of marketable securities 


18


27

 Settlement of terminated fixed-to-fixed cross currency swap 




(22)

 Settlements of undesignated derivatives 


(6)


(2)

 Other, net 


7


5

 Net cash used in investing activities 


(297)


(260)







 Financing activities 





 Net change in short-term debt 


212


43

 Proceeds from long-term debt 


2


802

 Repayment of long-term debt 


(19)


(805)

 Redemption premium on debt 




(21)

 Deferred financing payments 




(13)

 Dividends paid to common stockholders 


(43)


(44)

 Repurchases of common stock 


(25)


(23)

 Distributions to noncontrolling interests 


(8)


(10)

 Contributions from redeemable noncontrolling interests 


30


6

 Deconsolidation of non-wholly owned subsidiary 




(6)

 Payments to acquire noncontrolling interests 


(4)



 Other, net 


(7)



 Net cash provided by (used in) financing activities 


138


(71)







 Net increase (decrease) in cash, cash equivalents and restricted cash 


148


(312)

 Cash, cash equivalents and restricted cash - beginning of period 


287


567

 Effect of exchange rate changes on cash balances 


(45)


(16)

 Cash, cash equivalents and restricted cash - end of period 


$         390


$         239



















 DANA INCORPORATED 






 Reconciliation of Net Cash Provided By Operating Activities to 

   Free Cash Flow and Adjusted Free Cash Flow (Unaudited) 














Three Months Ended

 (In millions) 


September 30,



2022


2021

 Net cash provided by (used in) operating activities 


$         171


$        (75)

 Purchase of property, plant and equipment 


(94)


(95)

 Free cash flow 


77


(170)

 Discretionary pension contributions 






 Adjusted free cash flow 


$           77


$     (170)









Nine Months Ended

 (In millions) 


September 30,



2022


2021

 Net cash provided by operating activities 


$         307


$         19

 Purchase of property, plant and equipment 


(300)


(228)

 Free cash flow 


7


(209)

 Discretionary pension contributions 






 Adjusted free cash flow 


$             7


$     (209)
















 DANA INCORPORATED 





 Segment Sales and Segment EBITDA (Unaudited) 



 For the Three Months Ended September 30, 2022 and 2021 












Three Months Ended

 (In millions) 


September 30,



2022


2021

 Sales 





Light Vehicle


$        1,047


$           918

Commercial Vehicle


505


396

Off-Highway


694


627

Power Technologies


289


263

 Total Sales 


$        2,535


$        2,204






 Segment EBITDA 





Light Vehicle


$             60


$             54

Commercial Vehicle


18


20

Off-Highway


91


100

Power Technologies


21


38

 Total Segment EBITDA 


190


212

 Corporate expense and other items, net 


2


(2)

 Adjusted EBITDA 


$           192


$           210
















 DANA INCORPORATED 





 Segment Sales and Segment EBITDA (Unaudited) 



 For the Nine Months Ended September 30, 2022 and 2021 












Nine Months Ended

 (In millions) 


September 30,



2022


2021

 Sales 





Light Vehicle


$        3,060


$        2,799

Commercial Vehicle


1,475


1,132

Off-Highway


2,206


1,931

Power Technologies


860


810

 Total Sales 


$        7,601


$        6,672






 Segment EBITDA 





Light Vehicle


$           124


$           241

Commercial Vehicle


38


53

Off-Highway


291


276

Power Technologies


71


111

 Total Segment EBITDA 


524


681

 Corporate expense and other items, net 




(4)

Adjusted EBITDA 


$           524


$           677
















 DANA INCORPORATED 





 Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) 



 For the Three Months Ended September 30, 2022 and 2021 












Three Months Ended

 (In millions) 


September 30,



2022


2021

 Segment EBITDA 


$           190


$           212

Corporate expense and other items, net


2


(2)

 Adjusted EBITDA 


192


210

Depreciation


(88)


(92)

Amortization


(6)


(6)

Non-service cost components of pension and OPEB costs




(2)

Restructuring charges, net


1


(1)

Stock compensation expense


(5)


(6)

Strategic transaction expenses


(1)


(3)

Loss on investment in Hyliion




(6)

Impairment of goodwill


(191)



Other items


(3)



 Earnings (loss) before interest and income taxes 


(101)


94

Interest income


2


2

Interest expense


32


31

 Earnings (loss) before income taxes 


(131)


65

 Income tax expense 


31


20

 Equity in earnings (loss) of affiliates 


(1)


5

 Net income (loss) 


$         (163)


$             50
















 DANA INCORPORATED 





 Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) 



 For the Nine Months Ended September 30, 2022 and 2021 












Nine Months Ended

 (In millions) 


September 30,



2022


2021

 Segment EBITDA 


$           524


$           681

Corporate expense and other items, net




(4)

 Adjusted EBITDA 


524


677

Depreciation


(270)


(272)

Amortization


(17)


(18)

Non-service cost components of pension and OPEB costs


(3)


(7)

Restructuring charges, net


1


(2)

Stock compensation expense


(13)


(15)

Strategic transaction expenses


(6)


(11)

Loss on investment in Hyliion




(20)

Loss on disposal group held for sale




(7)

Loss on de-designation of fixed-to-fixed cross currency swaps




(9)

Impairment of goodwill


(191)



Other items


(1)


(1)

 Earnings before interest and income taxes 


24


315

Loss on extinguishment of debt




(24)

Interest income


6


6

Interest expense


95


99

 Earnings (loss) before income taxes 


(65)


198

 Income tax expense 


67


56

 Equity in earnings (loss) of affiliates 


(1)


29

 Net income (loss) 


$         (133)


$           171
















 DANA INCORPORATED 





 Reconciliation of Net Income Attributable to the Parent Company to 



   Adjusted Net Income Attributable to the Parent Company and 




   Diluted Adjusted EPS (Unaudited) 





 For the Three Months Ended September 30, 2022 and 2021 











 (In millions, except per share amounts) 








Three Months Ended




September 30,




2022


2021

 Net income (loss) attributable to parent company 


$            (88)


$             48

 Items impacting income (loss) before income taxes: 






 Amortization 


5


5


 Restructuring charges, net 


(1)


1


 Strategic transaction expenses 


3




 Gain on investment in Hyliion 




6


 Impairment of goodwill 


118




 Other  items 




3

 Items impacting income taxes: 






 Net income tax expense on items above 


(5)


(4)


 Income tax expense attributable to various discrete tax matters 


2


1

 Adjusted net income attributable to the parent 


$             34


$             60







 Diluted shares - as reported 


143.8


146.2

 Adjusted diluted shares 


143.8


146.2







 Diluted adjusted EPS 


$          0.24


$          0.41
















 DANA INCORPORATED 





 Reconciliation of Net Income Attributable to the Parent Company to 



   Adjusted Net Income Attributable to the Parent Company and 




   Diluted Adjusted EPS (Unaudited) 





 For the Nine Months Ended September 30, 2022 and 2021 











 (In millions, except per share amounts) 








Nine Months Ended




September 30,




2022


2021

 Net income (loss) attributable to parent company 


$            (63)


$           172

 Items impacting income (loss) before income taxes: 






 Amortization 


15


15


 Restructuring charges, net 


(1)


2


 Strategic transaction expenses 


8


8


 Loss on investment in Hyliion 




20


 Loss on disposal group held for sale 




7


 Loss on extinguishment of debt 




24


 Loss on de-designation of fixed-to-fixed cross currency swaps 




9


 Impairment of goodwill 


118




 Other items 




5

 Items impacting income taxes: 






 Net income tax expense on items above 


(10)


(14)


 Income tax expense (benefit) attributable to various discrete tax matters 


2


(5)

 Adjusted net income attributable to the parent 


$             69


$           243







 Diluted shares - as reported 


144.4


146.4

 Adjusted diluted shares 


144.4


146.4







 Diluted adjusted EPS 


$          0.48


$          1.66

 

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SOURCE Dana Incorporated