Dana Inc (DAN) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $485 million, or $ 3.34 a share in the quarter, against a net loss of $82 million, or $0.54 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $85 million, or $0.59 a share compared with $51 million or $0.34 a share, a year ago.
Revenue during the quarter grew 5.24 percent to $1,447 million from $1,375 million in the previous year period. Gross margin for the quarter expanded 159 basis points over the previous year period to 14.10 percent. Total expenses were 98.96 percent of quarterly revenues, up from 94.84 percent for the same period last year. That has resulted in a contraction of 413 basis points in operating margin to 1.04 percent.
Operating income for the quarter was $15 million, compared with $71 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $166 million compared with $129 million in the prior year period. At the same time, adjusted EBITDA margin improved 209 basis points in the quarter to 11.47 percent from 9.38 percent in the last year period.
“Dana had an excellent 2016 as the team executed our plan very effectively. We successfully launched multiple customer vehicle programs and improved our profitability through cost performance, despite having to overcome significant weakness in certain key end markets,” said James Kamsickas, Dana president and chief executive officer. “Our core business continues to expand while we have efficiently grown inorganically by acquiring businesses that align with our enterprise strategy.”
Dana Inc forecasts revenue to be in the range of $6,200 million to $6,400 million for fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $1.60 to $1.80 on adjusted basis.
Operating cash flow declines
Dana Inc has generated cash of $384 million from operating activities during the year, down 5.42 percent or $22 million, when compared with the last year.
The company has spent $365 million cash to meet investing activities during the year as against cash outgo of $258 million in the last year.
The company has spent $88 million cash to carry out financing activities during the year as against cash outgo of $403 million in the last year period.
Cash and cash equivalents stood at $707 million as on Dec. 31, 2016, down 10.62 percent or $84 million from $791 million on Dec. 31, 2015.
Working capital drops significantly
Dana Inc has witnessed a decline in the working capital over the last year. It stood at $1,031 million as at Dec. 31, 2016, down 25.45 percent or $352 million from $1,383 million on Dec. 31, 2015. Current ratio was at 1.82 as on Dec. 31, 2016, down from 2.27 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 20 days for the quarter from 23 days for the last year period. Days sales outstanding were almost stable at 26 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 24 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 30 days for the quarter from 27 for the same period last year.
Debt moves up
Dana Inc has witnessed an increase in total debt over the last one year. It stood at $1,664 million as on Dec. 31, 2016, up 5.65 percent or $89 million from $1,575 million on Dec. 31, 2015. Total debt was 34.24 percent of total assets as on Dec. 31, 2016, compared with 36.41 percent on Dec. 31, 2015. Debt to equity ratio was at 1.34 as on Dec. 31, 2016, down from 1.90 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 0.52 for the quarter from 2.63 for the same period last year.
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