Appoints Current Dana Director R. Bruce McDonald as Chairman and CEO
Announces Plan to Sell Off-Highway Business
Initiates $200
Million Cost Reduction Plan
Confirms 2024 Full-Year Guidance Ranges for
Sales, Adjusted EBITDA and Free Cash Flow
MAUMEE,
Ohio, Nov. 25, 2024 /PRNewswire/ -- Dana
Incorporated (NYSE: DAN) today announced the appointment of R.
Bruce McDonald, a member of the Dana
Board of Directors, as Chairman and Chief Executive Officer,
effective immediately. Mr. McDonald's appointment follows the
retirement of James Kamsickas as
Chief Executive Officer and his departure from the Board. Mr.
Kamsickas will remain as an advisor to the Company through
March 2025 to support the transition.
The Board has retained a leading executive search firm to identify
the Company's next permanent CEO.
Keith Wandell, Dana's Lead
Independent Director, said, "Jim is an exceptional leader with more
than 18 years as a CEO in the industry. He led Dana through one of
the industry's most challenging periods while successfully building
a high-performance culture, enabling a world-class manufacturing
company and assembling a portfolio of leading products and
technologies. The Board and Jim agreed that now is the right time
to transition the leadership of Dana, and we thank Jim for his many
contributions over his nine years leading the Company and wish him
all the best."
Mr. Kamsickas said, "I am proud of the work the Dana team has
done over the past decade to grow revenues and successfully enhance
the technology to serve all mobility markets no matter what type of
propulsion they may use. It has been an honor to lead this talented
global team during that time and I am confident the Company is well
positioned for the future."
Mr. Wandell continued, "We continue to have confidence in the
long-term opportunity in the mobility industry, however it is
undergoing a significant transformation, including protracted cost
pressures and demand uncertainty. To address these challenges and
deliver more value to customers and shareholders, Dana is taking
action to streamline the business, unlock the value of its
Off-Highway business and further reduce costs. Bruce is an
experienced public company CEO in our industry with significant
M&A expertise, and we are confident that he is the right person
to oversee this transformation while the Board conducts a search
for a permanent successor."
Plan to Sell Off-Highway Business
Dana today also announced it has engaged financial advisors
Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC to
sell its Off-Highway business, which the Board believes will unlock
substantial value for shareholders. The Off-Highway business
provides drive and motion systems for heavy-duty vehicles in
markets such as agriculture, materials handling, mining,
construction and forestry. A sale will position Dana with a
streamlined go-to-market approach focused on serving its light and
commercial vehicle customers, with traditional and electrified
products that are largely shared across the remaining portfolio.
Proceeds from a potential sale will enable Dana to strengthen its
balance sheet through substantially reduced leverage, and to return
capital to shareholders.
While the Company and its advisors believe there is strong
interest in the Off-Highway business, there can be no assurance
that the sale process for Off-Highway will result in a transaction.
There is no timeframe for the conclusion of the process, and the
Company does not intend to comment further regarding this matter
unless and until further disclosure is determined to be
appropriate.
Cost Reduction Actions
While Dana continues to improve its profitability in a
challenging operating environment, the Company announced further
actions to support sustained long-term profitability and enhanced
cash flow generation. This includes substantial reductions in
selling, general & administrative costs across all the
Company's businesses and engineering expenses to match current
industry dynamics, including the ongoing delay in the adoption of
electric vehicles. The Company expects to deliver annualized
savings of approximately $200 million
by 2026. Furthermore, the Company plans to reduce capital spending
to reflect the revised market demand for electric vehicles.
Bruce McDonald, Chief Executive
Officer said, "Dana is committed to a strategy that accelerates
value creation and has taken action to flex its cost structure and
generate efficiencies by leveraging its core strengths through
current market conditions. It is clear that further actions are
needed, and I am confident that the new incremental cost
reductions, paired with the benefits of a potential Off-Highway
sale, will enhance shareholder value. Following the Off-Highway
business sale, we believe Dana will have an adjusted EBITDA margin
and free cash flow margin in excess of current levels."
Mr. McDonald continued, "Dana is differentiated by leading
technology innovation and a track record of continuous improvement.
My conviction in our businesses, the team and the opportunities to
capitalize on the EV transition over the long term remain strong. I
look forward to stepping into my new role as CEO at such an
important time for Dana and will work diligently alongside the
Board and management team to deliver on these actions and drive
value for Dana shareholders."
Reaffirms 2024 Full-Year Guidance Ranges
Dana is also reaffirming its previously announced guidance
ranges for sales of $10.2 to
$10.4 billion, Adjusted EBITDA of
$855 to $895
million and free cash flow of $90 to $110 million
for full year 2024, as outlined in the Company's third quarter 2024
earnings announcement on October 30,
2024.
About R. Bruce McDonald
R. Bruce McDonald is a senior
executive with over 30 years of experience in the automotive and
manufacturing industries and significant expertise. Mr. McDonald
has been a member of the Dana Board of Directors since 2014. He is
also the retired chairman and chief executive officer of Adient
plc., a global mobility supplier. He previously served as executive
vice president and vice chairman of Johnson Controls, Inc., a
global manufacturer of automotive, power and building solutions
from 2014 to 2016.
Mr. McDonald also served as executive vice president and chief
financial officer of Johnson Controls from 2005 to September 2014. Before joining Johnson Controls
as vice president and corporate controller in 2001, he was vice
president for finance at TRW Automotive.
Prior to his appointment as Chairman of the Board, Mr. McDonald
served on Dana's Audit Committee and as chair of the Nominating and
Corporate Governance Committee.
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 $10.6
billion in 2023 with 42,000 people in 31 countries across
six continents. With a history dating to 1904, Dana was named among
the "World's Most Ethical Companies" for 2023 and 2024 by
Ethisphere and as one of "America's Most Responsible Companies
2023" by Newsweek. 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.
Craig Barber, +1-419-699-4990,
craig.barber@dana.com
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SOURCE Dana Incorporated