Dana Incorporated reported a decline in net sales for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $2,476 million, down from $2,669 million in Q3 2023. For the nine months ended September 30, 2024, net sales totaled $7,949 million, a decrease from $8,061 million in the prior year. The decrease in sales was attributed to lower production volumes in the light vehicle and commercial vehicle markets, particularly in North America, where organic sales fell by 3%.
Cost of sales also decreased, amounting to $2,231 million for Q3 2024, down from $2,433 million in Q3 2023. For the nine-month period, cost of sales was $7,205 million, compared to $7,325 million in 2023. The gross margin for Q3 2024 improved to $245 million (9.9% of net sales) from $236 million (8.8% of net sales) in Q3 2023, reflecting cost-saving measures and operational efficiencies.
Profitability metrics showed a significant decline, with net income for Q3 2024 at $11 million, down from $25 million in Q3 2023. For the nine months ended September 30, 2024, net income was $27 million, compared to $92 million in the same period of 2023. The net income attributable to the parent company also decreased, from $19 million in Q3 2023 to $4 million in Q3 2024.
Dana's strategic developments included a restructuring initiative that involved reducing approximately 900 employees, with completion expected over the next year. The company recognized restructuring charges of $24 million in Q3 2024, up from $17 million in Q3 2023. Additionally, Dana entered into an agreement to sell its European hydraulics business, recognizing a $26 million loss to adjust the carrying value of net assets.
The company maintained a balanced capital allocation strategy, declaring a cash dividend of $0.10 per share in each quarter of 2024. As of September 30, 2024, Dana had total assets of $7,859 million, down from $7,965 million at the end of 2023, and total current liabilities increased to $2,716 million from $2,602 million.
Looking ahead, Dana anticipates a sales outlook of $10,200 million to $10,400 million for 2024, a decrease of $400 million at the mid-point from prior guidance. The adjusted EBITDA outlook for 2024 is projected at $855 million to $895 million, reflecting a $50 million reduction from previous estimates.
About DANA INC
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