Dana Incorporated announces it is raising its 2018 full-year guidance.
Strengthening end-market demand, most notably in off-highway and commercial vehicle, combined with benefits from currency translation are driving an additional 4% increase in expected sales growth in 2018 compared with the company's prior full-year target. Due to the improved market conditions combined with sales from the new business backlog, 2018 sales are now expected to grow by 10%, or approximately $700 million, compared with 2017.
Adjusted EBITDA for 2018 is now expected to increase by approximately $145 million, or 80 basis points of margin improvement, when compared with 2017. The revised target is a $45 million dollar or 5% increase, compared with the company's prior full-year guidance, and represents 10 basis points of margin improvement. This margin improvement is driven by conversion on higher sales and over-achievement of the synergy plan.
"Our continued strong financial performance, driven by our organic and inorganic sales growth and the execution of our synergy plan related to recent acquisitions, has provided us with increased confidence in our outlook for 2018 – and further solidified our trajectory toward achieving our long-term targets," says Jonathan Collins, Executive Vice President and Chief Financial Officer of Dana.
Updated 2018 Full-year Financial Targets
- Sales of $7.75 to $8.05 billion;
- Adjusted EBITDA of $950 to $1,010 million, an implied adjusted EBITDA margin of approximately 12.4%;
- Diluted adjusted EPS1 of $2.75 to $3.05;
- Operating cash flow of approximately 7.5% of sales;
- Capital spending of approximately 4.0% of sales; and
- Free cash flow of approximately 3.5% of sales.
