Dana shares soar after cost reduction target boosted
24/01/2025 16:52
** Shares of Dana DAN.N soar 15.4% to $15.27, highest since
Sept 2023, on Fri after auto components provider releases
preliminary 2024 results, FY 2025 guidance, and boosts
cost-savings plans
** DAN shares top performers in S&P 1500 .SPSUP and
tracking biggest one-day pct advance since Apr 2020
** Maumee, Ohio-based firm early Fri said cost-savings actions
are "well underway" and it increased cost reduction target to
$300 mln, up from $200 mln, by 2026
** "Our 2025 outlook reinforces the impact of these actions,
which will help solidify Dana's leadership position and enable
us to capitalize on the strength of our traditional on-highway
businesses while remaining a leader in the EV (electric vehicle)
transition," CEO R. Bruce McDonald said
** Co expects preliminary sales for FY 2024 of $10.3 bln,
in-line with prior guidance, and sees 2025 sales of $9.53-$10.03
bln
** Analysts had expected 2025 sales of $9.83 bln, per LSEG
** Co also announced changes to reportable business segments
to take effect in Q1. New segments will be: Light Vehicle
Systems and Commercial Vehicle Systems
** With move on Fri, shares up ~32% YTD, following 21% drop
in 2024
** Of 9 analysts covering DAN, recommendation breakdown is 5
"buy", 2 "hold" and 2 "sell" ratings; median PT of $16 up from
$14 a month ago and from $9 on Nov 24 - LSEG
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))