US-based drivetrain supplier, Dana Incorporated, has announced its latest financial results.
The company reported sales of $7.1 billion USD, a decrease of $1.5 billion USD driven by the effects of the global pandemic for FY2020.
This decrease, Dana said, is mostly due to weaker demand across all mobility markets due to customers idling operations through the middle of the year in response to COVID-19.
Net loss of $31 million USD for FY2020 resulted mainly from goodwill impairment charges recorded during the onset of the global pandemic.
Operating cashflow for the reported period was $386 million USD. Adjusted free cash flow was $60 million USD, about 1.0 per cent of sales compared with $272 million USD or 3.0 per cent sales in 2019.
The impact of lower profit in 2020, according to Dana Incorporated, was partially offset by targeted cash conversion measures, lower cash taxes and lower capital expenditures.
“Reflecting on 2020, it was truly a unique year and challenging environment,” said Dana Chairman and CEO, James Kamsickas.
“As a result of the hard work and dedication of the Dana team, we proved we could adapt and excel when faced with the most severe of business environments, delivering strong sales and rebounding margins as we ended the year with positive free cash flow.
“We also further secured our leadership position in the e-Mobility space with 50 per cent of our $700 million new business backlog coming from electric or hybrid programs, demonstrating our promise to lead in this fast-growing segment.
“Our success in rapidly penetrating the electric-vehicle market is a direct result of our strategy and the investments we have made over the past several years.
As we move forward, we are well-positioned to capitalise on our momentum and realise the potential of our business.”
In Q4 2020 Dana Incorporated announced a commitment to reduce its total annual greenhouse has emissions by at least half before the end of 2035. This is reported to represent a reduction of more than 300,000 tonnes of carbon dioxide emissions annually.
To help meet this goal, the company has signed a long-term agreement to add 300,000 megawatt-hours annually in renewable electricity to the grid beginning 2022. Dana, in return, will receive equivalent quantity of renewable energy credits to address approximately 90 per cent of the company’s annual US electricity consumption.