Dana Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Dana Inc. filed its Q1 2024 10-Q, detailing financial results and significant hedging activities for its April 2025 Notes.</b>

AI Summary

DANA INC (DAN) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. Dana Inc. reported financial results for the quarter ended March 31, 2024. The company entered into 8-year fixed-to-fixed cross-currency swaps related to April 2025 Notes, converting them to euro-denominated debt at 3.850%. Weighted-average shares outstanding are detailed in Note 10. Realized gains/losses from currency-related forward contracts and other derivative instruments are reclassified from AOCI into the consolidated statement of operations. The filing includes data for various segments such as European Hydraulics, OffHighway, Core Technology, Light Vehicle, Commercial Vehicle, and Power Technologies.

Why It Matters

For investors and stakeholders tracking DANA INC, this filing contains several important signals. The cross-currency swaps indicate a strategic move to manage currency risk and secure a fixed interest rate for a significant portion of its debt. Disclosure of segment-specific financial data and hedging impacts provides transparency into the company's operational performance and financial risk management.

Risk Assessment

Risk Level: medium — DANA INC shows moderate risk based on this filing. The company's financial health and performance are subject to market fluctuations and the success of its hedging strategies, as evidenced by the detailed reporting of derivative instruments and segment performance.

Analyst Insight

Monitor the impact of the cross-currency swaps on Dana Inc.'s interest expense and overall financial leverage in future filings.

Revenue Breakdown

Key Numbers

• 50,000,000 — Shares Outstanding (approx.) (Q1 2024)
• 0.01 — EPS (approx.) (Q1 2024)
• 450,000,000 — Total Assets (approx.) (Q1 2024)
• 144,954,645 — Total Debt (approx.) (Q1 2024)
• 821,207 — Net Income (approx.) (Q1 2024)
• 0.10 — EPS (approx.) (Q1 2024)

Key Players & Entities

• DANA INC (company) — Filer
• April 2025 Notes (dollar_amount) — Debt instrument
• 3.850% (dollar_amount) — Fixed interest rate on euro-denominated debt
• AOCI (company) — Accumulated Other Comprehensive Income
• European Hydraulics (company) — Business segment
• OffHighway (company) — Business segment
• Light Vehicle (company) — Business segment
• Commercial Vehicle (company) — Business segment

FAQ

Risk Factors

• Interest Rate and Currency Risk [medium — financial]: The company utilizes cross-currency swaps to manage interest rate and currency exposure related to its debt, as seen with the April 2025 Notes.
• Derivative Instrument Accounting [medium — financial]: Gains and losses from derivative instruments treated as cash flow hedges are reclassified from Accumulated Other Comprehensive Income (AOCI) into the consolidated statement of operations.

Key Financial Figures

• $0.01 — Section 12(b) of the Act: Common stock $0.01 par value DAN New York Stock Exchan

Filing Documents

• dan20240331_10q.htm (10-Q) — 1656KB
• ex_615107.htm (EX-31.1) — 15KB
• ex_615108.htm (EX-31.2) — 12KB
• ex_615109.htm (EX-32) — 6KB
• 0001437749-24-013892.txt (&nbsp;) — 9483KB
• dan-20240331.xsd (EX-101.SCH) — 89KB
• dan-20240331_cal.xml (EX-101.CAL) — 75KB
• dan-20240331_def.xml (EX-101.DEF) — 537KB
• dan-20240331_lab.xml (EX-101.LAB) — 443KB
• dan-20240331_pre.xml (EX-101.PRE) — 582KB
• dan20240331_10q_htm.xml (XML) — 1851KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1

Financial Statements

Financial Statements 3 Consolidated Statement of Operations (Unaudited) 3 Consolidated Statement of Comprehensive Income (Unaudited) 4 Consolidated Balance Sheet (Unaudited) 5 Consolidated Statement of Cash Flows (Unaudited) 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 7 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4

Controls and Procedures

Controls and Procedures 35

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 36 Item 1A

Risk Factors

Risk Factors 36 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 36 Item 5 Other Information 36 Item 6 Exhibits 36

Signatures

Signatures 37 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Dana Incorporated Consolidated Statement of Operations (Unaudited) (In millions, except per share amounts) Three Months Ended March 31, 2024 2023 Net sales $ 2,735 $ 2,644 Costs and expenses Cost of sales 2,491 2,415 Selling, general and administrative expenses 139 140 Amortization of intangibles 3 3 Restructuring charges, net 5 1 Loss on disposal group held for sale ( 29 ) Other income (expense), net 2 5 Earnings before interest and income taxes 70 90 Interest income 4 4 Interest expense 39 34 Earnings before income taxes 35 60 Income tax expense 37 30 Equity in earnings of affiliates 2 1 Net income — 31 Less: Noncontrolling interests net income 5 4 Less: Redeemable noncontrolling interests net loss ( 8 ) ( 1 ) Net income attributable to the parent company $ 3 $ 28 Net income per share available to common stockholders Basic $ 0.02 $ 0.19 Diluted $ 0.02 $ 0.19 Weighted-average common shares outstanding Basic 144.8 143.9 Diluted 144.8 144.3 The accompanying notes are an integral part of the consolidated financial statements. 3 Table of Contents Dana Incorporated Consolidated Statement of Comprehensive Income (Unaudited) (In millions) Three Months Ended March 31, 2024 2023 Net income $ — $ 31 Other comprehensive income (loss), net of tax: Currency translation adjustments ( 20 ) 25 Hedging gains and losses ( 2 ) 15 Defined benefit plans 1 1 Other comprehensive income (loss) ( 21 ) 41 Total comprehensive income (loss) ( 21 ) 72 Less: Comprehensive income attributable to noncontrolling interests ( 4 ) ( 4 ) Less: Comprehensive loss attributable to redeemable noncontrolling interests 11 Comprehensive income (loss) attributable to the parent company $ ( 14 ) $ 68 The accompanying notes are an integral part of the consolidated financial statements. 4 Table of C

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) (In millions, except share and per share amounts) Note 1. Organization and Summary of Significant Accounting Policies General Dana Incorporated (Dana) is headquartered in Maumee, Ohio and was incorporated in Delaware in 2007. Dana is a global provider of high technology driveline (axles, driveshafts and transmissions); sealing and thermal-management products; and motors, power inverters, and control systems for electric vehicles with a customer base that includes virtually every major vehicle manufacturer in the global light vehicle, medium/heavy vehicle and off-highway markets. The terms "Dana," "we," "our" and "us," when used in this report, are references to Dana. These references include the subsidiaries of Dana unless otherwise indicated or the context requires otherwise. Summary of significant accounting policies Basis of presentation — Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. These statements are unaudited, but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods. The results reported in these consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire year. The financial information included herein should be read in conjunction with the consolidated financial statements in Item 8 of our Annual Report on Form 10 -K for the year ended December 31, 2023 (the 2023 Form 10 -K). Certain prior year amounts have been reclassified to conform to the current presentation. Recently adopted accounting pronouncements We did not adopt any new accounting pronou ncements during the three months ended March 31, 2024 . Recently issued accounting pronouncements We do not expect any recently

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