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Key takeaways from the call include:
Despite the challenges posed by the UAW strike, Dana Incorporated has managed to execute well and is nearing the completion of several key launch programs. The overall operating environment is also showing signs of improvement, with moderating steel prices, cost inflation, and strong demand in heavy vehicle markets.
In the earnings call, CEO James Kamsickas discussed seasonal factors that typically lower Q4 margins, such as down production days around Thanksgiving and Christmas. He also mentioned that inflation has moderated slightly and the company has seen lower overall electric vehicle (EV) investment, but they are becoming more efficient in ramping up EV programs. Kamsickas emphasized the company’s focus on operational efficiencies, commercial recovery, and managed spend to offset the impact of the UAW strike. He also expressed confidence in the company’s ability to achieve break-even in the EV business by 2025.
Timothy Kraus, a representative from Dana, discussed the operational improvements and efficiency measures that have been implemented across the business. These measures have resulted in improvements in various segments, such as commercial sales in North America. However, he also mentioned that the company expects some challenges in 2024 and that the improvements seen in 2023 may not be as dramatic.
The company expressed readiness to adapt to any energy source but stated that electric vehicles (EVs) are not a major part of their current backlog. They mentioned that commercial vehicles were their first segment to electrify, and EV programs tend to have longer development periods, falling outside the current backlog. The company concluded by expressing gratitude and anticipation for future communication with investors.
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