Dana Holding Corporation Announces Preliminary 2015 Financial Results, 2016 Guidance and $300 Million Share Repurchase Program

Dana Holding Corporation today announced preliminary financial results for 2015 and guidance for 2016.  The company also announced that its Board of Directors has authorized the repurchase of an additional $300 million of common shares.  This is in addition to the $1.4 billion share repurchase authorization completed in last year's fourth quarter.

Preliminary 2015 Financial Results Announced

• Sales of $6.0 billion;

• Adjusted EBITDA of $655 million, 10.9 percent of sales;

• Strong free cash flow of $150 million; and

• Repurchase of $311 million of common stock in 2015.

Preliminary sales for the year approximated $6.0 billion.  After adjusting for currency translation of more than $500 million and the divestiture of the company's Venezuela operations, full-year 2015 sales were comparable with a year ago.  Contributions from new business wins and strong North American vehicular markets largely offset weaker demand in the global off-highway and Brazilian markets.  Adjusted EBITDA for the year of approximately $655 million, or 10.9 percent of sales, was 40 basis points lower than 2014.  This was due largely to supply-chain inefficiencies in the company's Commercial Vehicle segment, which led to increased costs and lower sales with a significant customer.  The company continued to generate strong free cash flow of approximately $150 million for the year, including significant capital investment for new program launches that will drive organic growth.  Dana also repurchased $311 million of common stock in 2015, completing its $1.4 billion share repurchase authorization. 

Company Updates Sales Backlog  

Dana's 2016-2018 sales backlog as of Dec. 31, 2015, rose to $750 million, 10 percent higher than the revised three-year backlog announced at the beginning of 2015, after adjustment for currency and market demand expectations.  New business wins, primarily in the Light Vehicle Driveline, Off-Highway Driveline, and Power Technologies businesses, drove the net increase in the sales backlog, which more than offset lower expected customer share in Commercial Vehicle Driveline and currency and market demand impacts.

Company Issues 2016 Guidance   

While overall demand across served end markets is expected to be relatively flat in 2016, increased sales from new customer program launches are expected to provide a partial offset to anticipated currency headwinds.  Adjusted EBITDA margin is expected to be comparable or slightly above last year, while free cash flow is expected to remain strong.  Financial guidance for 2016 includes:

• Sales of $5.8 to $6.0 billion;

• Adjusted EBITDA of $640 to $670 million;

• Adjusted EBITDA as a percent of sales of 11.0 to 11.2 percent;

• Diluted adjusted EPS of $1.65 to $1.80 (excluding the impact of share repurchases after Dec. 31, 2015);

• Capital spending of $280 to $300 million; and

• Free cash flow of $160 to $180 million.

"Despite the challenging economic environment in some of our markets, our Light Vehicle Driveline, Off-Highway Driveline, and Power Technologies segments each achieved organic sales growth and improved year-over-year margin.  Our Commercial Vehicle segment was challenged this past year due to a major supplier transition, and while adversely impacting our 2015 performance, this completed initiative has better positioned this business for future success," said Mr.James Kamsickas, Dana president and chief executive officer.  "Looking ahead, we successfully retained our key replacement programs while continuing to grow our sales backlog with new programs in all of our businesses – an indication that our technology, products, and customer focus continues to support the needs of our customers around the world."

Additional Share Repurchase Program 

Dana announced today that its board of directors approved a new share repurchase program, authorizing the purchase of up to $300 million of common shares over the next two years.  The company plans to repurchase shares either in the open market or through privately negotiated transactions and expects to have sufficient free cash flow and liquidity during this period to support this initiative.  Execution under this program is subject to prevailing market conditions, available growth opportunities, and other considerations.

"This additional authorization by our board reflects our confidence in the long-term prospects of the business and a continued commitment to delivering value to our shareholders," said Mr. Kamsickas.

Dana to Present at 2016 Deutsche Bank Global Auto Industry Conference Today

President and Chief Executive Officer James Kamsickas and Senior Vice President and Interim Chief Financial Officer Rodney Filcek will provide a brief overview of the company and answer questions for approximately 40 minutes, beginning at 2:20 p.m. EST.