Dana Holding Corporation announces that President and Chief Executive Officer Roger J. Wood has informed the company's Board of Directors that he plans to retire in April 2016, after five years of leadership at Dana.
The board has initiated a process that will evaluate both internal and external candidates in order to select the best possible successor, and Spencer Stuart Inc., the global executive search consulting firm, has been engaged to assist in this process. Wood will be an integral part of the succession process.
"Having completed a transformation plan in which we realigned our capital structure, implemented a lean and focused operating model across the enterprise, and steadily increased our investment in engineering and innovation, Dana is on a path for consistent shareholder value creation," Wood says. "Dana's employees and experienced leadership team have demonstrated remarkable tenacity and agility in transforming our global enterprise and creating the foundation for sustainable, profitable growth.
"We are looking forward to another year of significant achievements. I am proud of what we've accomplished and confident in our prospects as we move toward the next chapter for our customers, employees and shareholders."
Joseph C. Muscari, Dana's non-executive chairman, says, "Roger has provided strong leadership, guiding the company through a challenging economic environment and resetting our strategic direction to create an efficient, highly innovative and rigorous competitor. We look forward to his continuing stewardship in the year ahead and to his active participation in the succession process to ensure the smoothest possible transition."
Preliminary 2014 Financial Results Announced
Preliminary sales for the year were $6.6 billion, including currency headwinds of more than $200 million, compared with a year ago. Adjusted EBITDA for the year of $745 million, or 11.3% of sales, is a 30 basis point improvement over 2013. The company also reported strong free cash flow of approximately $275 million and repurchased $260 million of common stock in 2014. The company still has $311 million under its current Share Repurchase Program.
Company Issues 2015 Guidance
Dana also announced its financial targets for full-year 2015, representing an increase in sales and margin as new business and some end market improvements are expected to offset currency headwinds of approximately $300 million:
- Sales of $6.7 to 6.8 billion;
- Adjusted EBITDA of $760 to $780 million;
- Adjusted EBITDA as a percent of sales of approximately 11.4 percent;
- Diluted Adjusted EPS of approximately $2.10 to $2.20 (excluding the impact of share repurchases after Dec. 31, 2014);
- Capital spending of $300 to $320 million; and
- Free cash flow of $190 to $220 million.
Company Announces 2015-2017 Sales Backlog, 2016 Sales and Margin Targets
Dana's 2015-2017 sales backlog of $730 million is 30% higher than the three-year backlog announced in 2014. New business wins, primarily in the Light Vehicle and Off-Highway Driveline Technologies businesses, are driving the increase.
Due to the impact of currency and softer-than-expected demand in a number of served end markets, sales in 2016 are expected to be about $7.4 billion, with a target adjusted EBITDA margin exit rate of more than 13%.
"We are pleased with our results for 2014. Despite the challenging economic environment in some of our markets, our strategic plan has begun to yield the results of growth above the market rate. It was a record year for margin and our sixth consecutive year of margin expansion," says Wood. "We are also excited about our prospects for 2015 and beyond – with continued growth above the market rate and an increasing backlog of new business."
Dana to Present at 2015 Deutsche Bank Global Auto Industry Conference
President and Chief Executive Officer Roger Wood, Executive Vice President and Chief Financial Officer Bill Quigley, and Executive Vice President of Dana and Group President of On-Highway Driveline Technologies Mark Wallace provided a brief overview of the company and answered questions for approximately 40 minutes.
A replay of the webcast is available on Dana's Investor website.