DANA Hits Record Sales in 2022
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DANA Hits Record Sales in 2022

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Rodrigo Andrade By Rodrigo Andrade | Journalist & Industry Analyst - Fri, 02/24/2023 - 08:54

DANA Incorporated posted record sales in 2022 for a total of US$10.2 billion, an increase of US$1.2 billion or 14% over the previous year. This result are thanks to its focus on electrification, argues the company, as 65% of new business operations come from providing EV platforms services. 

"DANA continues to successfully execute as front runners in the transformation to a zero-emission world, while taking extraordinary operational actions to serve our customers, including scaling operations to support near-term market share gains," says James Kamsickas, Chairman and CEO, DANA Incorporated. He emphasizes that the company’s strong focus on electromobility will lead to an “above-market sales growth in 2023.” For 2023, DANA forecasts higher sales thanks to a record sales backlog of US$900 million for the next three years, reads the company press release.

During 2022, the company saw overall improved market conditions, with a significant increase in demand. The company’s Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) reached US$700 million, a decrease when compared to the US$795 million of 2021.

Timothy Kraus, Senior Vice President and CFO, DANA Incorporated, says that despite different challenges presented during 4Q22 the company reached many of its goals, such as sales growth and improved cash flow. During the fourth quarter of 2022, the company dealt with elevated raw material expenses, reduced commercial recoveries, extra expenses for winning EV programs, heightened volatility in customer schedules and added costs to expand operations. 

"Looking forward to 2023, we expect sales growth to accelerate with improved profit conversion as customer operations stabilize throughout the year, ongoing cost recoveries largely offset inflation and commodity costs continue to moderate,” says Kraus.

DANA Cardanes, a manufacturing subsidiary of DANA Incorporated, announced a US$21 million investment to expand its production capabilities in Queretaro by adding a production line that will manufacture cardan shafts for Toyota. The company anticipates generating 100 job opportunities through the plant's expansion, with additional 200 positions to be added once the three assembly lines become fully operational, as reported by MBN.

DANA Cardanes, which has over 10 manufacturing plants in Mexico and employs more than 38,000 individuals globally, will use the new 917m2 facility to manufacture products for Toyota, according to Alejandro Sánchez, Chief Operating Officer, DANA Cardanes.

Sánchez emphasizes that Queretaro's favorable position, logistics infrastructure and public policies make the state a crucial player in Mexico's automotive sector. These factors differentiate the area and instill confidence among businesses seeking to invest in the country.

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