Dana Incorporated (Formerly Dana Holding Corporation) Business Report FY ended Dec. 2017

Financial Overview

(in million USD)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 Rate of
change (%)
Net Sales 7,209 5,826 23.7 1)
Net Income 116 653 (82.2) -
Sales by segment
Light Vehicle 3,172 2,607 21.7 2)
Commercial Vehicle 1,412 1,254 12.6 3)
Power Technologies 1,104 1,056 4.5 4)

1) Net Sales
-The Company’s sales in the fiscal year ended December 31, 2017 increased 23.7% from the previous year to USD 7,209 million. Organic sales increased by USD 829 million primarily due to increased strength across light truck markets, strength in medium and heavy truck markets in Europe and South America, increased demand for off-highway vehicles. The acquisitions of Brevini Fluid Power S.p.A., Brevini Power Transmission S.p.A., SIFCO, USM and Magnum generated an increase of sales of USD 542 million. The divestiture of Nippon Reinz partially offset gains, contributing to a loss of USD 42 million.

2) Light Vehicle segment sales
-Sales in the Company’s Light Vehicle segment in the fiscal year ended December 31, 2017 totaled USD 3,172 million, an increase of 21.7% over the previous year. Excluding currency effects and the acquisition of USM, sales increased by 18% over the previous year due to stronger global production levels, content increases and favorable model mix in North America. Customer pricing, cost recovery impacts and a shift of a program from the Commercial Vehicle segment to the Light Vehicle segment also improved sales.

3) Commercial Vehicle segment sales
-In the fiscal year ended December 31, 2017, sales in the Company’s Commercial Vehicle segment increased by 12.6% from the previous year to USD 1,412 million. Excluding currency and acquisitions effects, sales in the segment increased by approximately 7% due to higher production levels in North America, South America, and Europe. The transfer of a program to the Light Vehicle segment negatively affected sales.

4) Power Technologies segment sales
-The Company’s Power Technologies segment had sales of USD 1,104 million in the fiscal year ended December 31, 2016, an increase of 4.5% over the previous year. Excluding currency effects and the divestiture of Nippon Reinz, the segment’s sales increased by 7% due to stronger market demand and new customer programs.


-The Company completed its USD 100 million acquisition of the axle housing and driveline shaft manufacturing operations of U.S. Manufacturing Corporation (USM). The USM facility currently employs approximately 800 people. With the acquisition, the Company will have 1,400 employees in the greater Detroit region. Beyond capacity and capability extension, the acquisition provides the Company with intellectual property for lightweight thin-wall axle tubes and hollow axle shafts, as well as proprietary tube manufacturing processes that strengthen its existing portfolio of lightweighting innovations. (From a press release on March 1, 2017)

-The Company announced that it has completed the acquisition of the power-transmission and fluid power businesses of Brevini Group, S.p.A. The Company purchased an 80% share in the Brevini businesses, with an option to purchase the remaining 20% by 2020. The Company has valued 100% of the Brevini businesses at EUR 325 million, including the assumption of approximately EUR 100 million of net debt. The transaction was funded with cash on hand. (From a press release on February 2, 2017)

Recent Developments

-The Company announced the production launch of its new SPL 350 Lite driveshaft optimized for high-efficiency on-highway and heavy-haul vehicles with engine downspeeding configurations. The new SPL 350 Lite driveshaft is up to 35 pounds lighter than existing products, making it the lightest driveshaft in its class. It shares service components with the existing SPL 350 driveshaft, simplifying maintenance and inventory for truck owners and service facilities. (From a press release on February 27, 2017)

-The Company introduced a new axle ratio of 2.47:1 for the Spicer AdvanTEK 40 tandem axle designed to support engine downspeeding for linehaul trucks. This new ratio is ideally suited for direct-drive versions of the SmartAdvantage Powertrain, a joint collaboration between Eaton and Cummins. (From a press release on February 27, 2017)


-The Company announced that several of its advanced technologies are utilized on several awarded vehicles. The 2017 Honda Ridgeline and 2017 Chrysler Pacifica, named the 2017 North American Truck and Utility Vehicles of the Year at the 2017 North American International Auto Show, incorporate the Company’s high-performing technologies into their powertrain assemblies. The Honda Ridgeline features a Victor Reinz cam cover module on its 3.5L V6 engine, and Victor Reinz heat shields are incorporated on the Chrysler Pacifica. Motor Trend's Truck of the Year, the 2017 Ford Super Duty, features Spicer front and rear axles, and Spicer propshafts, for the F-250 through F-550 models. The Company supplies charge air, transmission oil, engine oil, and diesel fuel coolers for the Ford Super Duty 6.7-liter diesel engine, and provides valve stem seals, transmission oil coolers, and plastic cam covers for the 6.2-liter gas engine. The Company’s technologies are on Mercedes-Benz’s C300 2.0L Turbocharged DOHC 4-cylinder engine, which is one of Wards 10 Best Engines in 2017. (From a press release on January 13, 2017)

-The Company announced that it has entered into a multi-year commercial sales agreement with Navistar International Corporation for driveline components for on-highway, city-delivery, bus, and vocational vehicles. Through this agreement, Navistar has access to the full range of the Company’s current driveline product offerings. In addition, the Company will remain the standard-position driveshaft supplier across all Navistar truck models. Consequently, Navistar and Dana concurrently launched several extended warranty packages for Navistar's school bus platform and its Durastar medium-duty truck program. (From a press release on January 10, 2017)


-The Company was honored by Ford Motor Company as a top-performing supplier, receiving a Ford World Excellence Award. The Company was recognized in the category of "Aligned Business Framework" for exemplifying the principles of quality, value, and innovation. (From a press release on May 22, 2017)

-The Company announced that it has been honored by FCA US LLC as the "2017 Innovation Supplier of the Year" for North America. The Company was acknowledged for developing a technologically advanced heat exchanger for the induction-air system on the 2018 Dodge Challenger SRT Demon. The 2018 Dodge Challenger SRT Demon is the first-ever factory production car with a refrigerated liquid-to-air charge air cooling system. (From a press release on May 15, 2017)

-The Company earned a 2017 Automotive News PACE Award for its Victor Reinz multi-layer steel transmission pump gasket. The multi-layer steel transmission pump gasket is a five-layer gasket that improves performance and fuel economy for vehicles with higher-speed transmissions. The innovative gasket provides a robust solution that increases durability, minimizes contact stress, and meets the needs of higher operating pressures. (From a press release on April 4, 2017)


-The Company expects its sales for the fiscal year ending December 31, 2018 to be between USD 7,500 million and USD7,700 million.

R&D Expenditure

(in million USD)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 FY ended Dec. 31, 2015
Overall 220 196 183
% of Sales 3.1 3.4 3.0

R&D Facilities

-As of December 31, 2017, the Company has eight standalone technical and engineering centers. In addition, the Company has eight additional sites that conduct research and development activities.

Product Development

Rhombus TireAnalytics tire maintenance and analytic cloud solution
-The Company unveiled its new “Rhombus TireAnalytics solution”, a cloud-based platform that enables commercial-truck owners and fleet maintenance managers to identify best practices for tire maintenance and optimize tire lifecycle management. Currently available in the U.S. and Canada, the system integrates portable communications and computing platforms, advanced data collection and analysis, information sharing, and dashboard technologies through a cloud-based solution. Truck owners can use the system with their existing mobile, tablet, and desktop assets, eliminating the need for additional hardware purchases. The Company is also developing “Spicer Smart Suite technology” for off-highway applications. This platform of fully integrated, connected-vehicle features converts operating data from the drivetrain into actionable insights for enhancing productivity, improving operator and machine safety, reducing maintenance costs, and decreasing total operating costs. (From a press release on February 27, 2017)

Capital Expenditure

(in million USD)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 FY ended Dec. 31, 2015
Light Vehicle 279 208 140
Commercial Vehicle 31 34 33
Off-Highway 32 21 18
Power Technologies 32 32 34
Eliminations and other 19 27 35
Total 393 322 260

-The Company expects to have capital expenditures of approximately USD 300 million in the fiscal year ending December 31, 2018.

Investments in U.S.

-The Company announced that it inaugurated a new high-tech axle production facility in Toledo, Ohio. The 300,000-square-foot facility was built to support a number of new light-vehicle programs, including the new Jeep Wrangler, which will be manufactured at FCA's Toledo Assembly Complex. By 2020, the facility will be supporting four vehicle programs and employing more than 350 people. (From a press release on October 25, 2017)

Investments outside U.S.

-The Company announced that it will build a new 7,500-square-meter manufacturing facility in Chongqing, China. Scheduled to open in late 2018, the plant will produce drive units with integrated Spicer SmartConnect disconnecting all-wheel-drive (AWD) technology, which improves the fuel efficiency of SUVs, crossovers, and passenger vehicles. The Company will invest approximately USD 13 million for the new facility, which will employ approximately 130 associates when full production is reached in 2020. This will be the Company’s 15th facility in China and its first in Chongqing. (From a press release on May 18, 2017)

-The Company broke ground on a EUR 46 million state-of-the-art gear manufacturing facility in Gyor, Hungary to support new business in the region. The 13,000-square-meter facility will begin production in early 2018 and employ approximately 200 workers when full production is reached in 2020. The facility will produce Spicer AdvanTEK hypoid or spiral bevel ring and pinion gear sets. Full axle assembly on the site is possible in the future. The new plant will be the Company's fourth operation in Hungary and is strategically positioned to be in close proximity to its existing Gyor operations. This enables the Company to deliver technologies to its European customers more quickly and cost effectively. The Hungarian Investment Promotion Agency (HIPA) awarded Dana development grants and tax incentives for construction of the new plant. (From a press release on April 5, 2017)