Dana Incorporated (NYSE:DAN) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 10:00 am ET


Dana Incorporated (NYSE:DAN) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, and welcome to Dana Incorporated's Second Quarter 2020 Financial Webcast and Conference Call. My name is Carmen, and I will be your conference operator today. [Operator Instructions]

At this time, I would like to begin the presentation by turning the call over to Dana's Senior Director of Investor Relations and Strategic Planning, Craig Barber. Please go ahead, Mr. Barber.

Craig Barber

Thank you, Carmen, and good morning, everyone on the call. Thank you for joining us today for our second quarter of 2020 earnings call. You will find this morning's press release and presentation are now posted on our investor website. Today's call is being recorded and the supporting materials are the property of Dana Incorporated. They may not be recorded, copied or rebroadcast without our written consent. Allow me to remind you that today's presentation includes forward-looking statements about our expectation for Dana's future performance. Actual results could differ from those suggested by our comments today. Additional information about the factors that could affect future results are summarized in our safe harbor statements found in our public filings and included with our reports with the SEC. On this call this morning is Jim Kamsickas, Chairman and Chief Executive Officer; and Jonathan Collins, Executive Vice President and Chief Financial Officer.

Thank you all. And Jim, the call is yours.

James Kamsickas

Okay. Thank you, Craig, and good morning, and thank all of you for joining us today. We hope that you and your families continue to remain safe throughout this difficult season. As you are aware, the mobility markets have seen a great deal of disruption in the first half of the year as a result of the global COVID-19 pandemic. As we communicated at the end of the first quarter, a large percentage of customers idled some or all production in April, and we're not able to begin restarting production until May. The initial May production ramp-up in the U.S. and a few other countries was just a bit slower than we had expected. But since then, we've seen a steady increase in demand as nearly all of our customers are back online. As a direct result of the global shutdowns, sales for the second quarter were $1.1 billion, just over 50% decline from the second quarter last year. As depicted in the lower left side of the slide, April saw a majority of the shutdown impact. We saw an 83% improvement in May as operations began to restart and further an 84% improvement in June as demand continued to improve. Through a combination of cost management actions and efficiently restarting our operations, we ended the quarter with nearly breakeven adjusted EBITDA and a slight adjusted EPS loss.

Despite the challenges, we had several highlights in the second quarter as we pivoted to restarting and reengaging the business. To begin with, all our operations have safely and successfully reopened, and we continue to win new business, notably on new electric vehicle programs. We also continue to invest in EV growth through both