#United States #Dana Incorporated #R. Bruce McDonald #Off-Highway Business #Maumee

Dana Incorporated's Leadership Transition and Strategic Initiatives

Dana Incorporated, a prominent player in the mobility sector, has recently made significant changes to its leadership and strategic direction. Effective immediately, R. Bruce McDonald, a seasoned member of the Dana Board of Directors, assumes the roles of Chairman and Chief Executive Officer. His appointment marks a new chapter for the company, following the retirement of James Kamsickas. Kamsickas has been celebrated for steering Dana through challenging times but is stepping down to allow for fresh leadership amid evolving industry dynamics.

Transitioning Leadership

Keith Wandell, Dana's Lead Independent Director, expressed gratitude for Kamsickas's exceptional contributions over his nine-year tenure as CEO. Kamsickas will remain with Dana as an advisor until March 2025 to ensure a smooth transition. His leadership was instrumental in fostering a high-performance culture and enhancing Dana's technology offerings, which serve various mobility markets.

Under McDonald's guidance, Dana aims to streamline its operations and pivot its focus towards value creation amidst ongoing industry transformations, including challenges such as cost pressures and demand uncertainties.

Business Restructuring and Sale of Off-Highway Business

In a strategic move to unlock shareholder value, Dana intends to divest its Off-Highway business. The company has engaged leading financial advisors Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC to facilitate the sale. This segment specializes in providing drive and motion systems for heavy-duty vehicles in multiple sectors, including agriculture and construction. The divestiture is expected to allow Dana to concentrate on its light and commercial vehicle markets, optimizing its portfolio to serve modern mobility needs, both traditional and electrified.

While the company is optimistic about the interest surrounding the Off-Highway business, it acknowledges that there are no guarantees regarding the timeline or outcome of the sale process.

Cost Reduction Strategies

To address the ongoing challenges and bolster profitability, Dana has initiated a $200 million cost reduction plan. This encompasses significant cuts in selling, general, and administrative expenses while also refining engineering costs to align with market demands, particularly in the electric vehicle sector. McDonald emphasized the commitment to adapt Dana’s cost structure and improve operational efficiencies, which are essential in today's competitive environment.

Financial Forecast and Future Outlook

Despite the hurdles, Dana has reaffirmed its guidance for the upcoming fiscal year, projecting sales between $10.2 billion and $10.4 billion, alongside an Adjusted EBITDA of $855 million to $895 million. This optimism signals a robust path toward achieving long-term financial health and sustaining cash flow generation.

About R. Bruce McDonald

R. Bruce McDonald brings over 30 years of experience in the automotive and manufacturing realms, further enhancing Dana's executive leadership. Since joining the Dana Board in 2014, McDonald has gained insight into the company's operational intricacies. Before his tenure at Dana, he held leadership positions at Adient plc and Johnson Controls, where he was pivotal in steering strategic initiatives.

In conclusion, Dana Incorporated's recent leadership changes and strategic actions highlight its commitment to evolving alongside the mobility industry's demands. With R. Bruce McDonald at the helm, the company is poised to navigate the complex landscape of innovation and value creation, ultimately benefiting its stakeholders and customers alike.