DAN - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to Dana Incorporated Fourth Quarter and Full Year 2024 Financial Webcast and Conference Call. My name is Regina, and I will be your conference facilitator. Please be advised that our meeting today, both the speakers' remarks and Q&A session will be recorded for replay purposes. [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, Strategic Planning and Corporate Communications, Craig Barber. Mr. ahead, go Please Barber.

Craig Barber

Dana's and XXXX for earnings QX forward-looking discussed expectations presentation everyone, differ results for what from call. us Dana includes we've for our about Incorporated's and statements performance. thank morning, Actual joining could you today. today Today's future Good full year

our that For safe-harbor our in statement factors our reports the results, could and SEC. with details more the please future found public affect about refer our filings to

our of investor press today's They morning's find of copied on without written recorded, a recorded and You'll or Dana be And release reminder, a website. presentation consent. call and this as the the Incorporated. being is not rebroadcast supporting may materials property

Chairman President and Kraus, and Chief On Chief this and this call Executive Senior Timothy Dana morning Vice Officer. McDonald, is Financial Officer; Bruce

Now Bruce. over I'd the to like call to turn

R. McDonald

good you, Thank Craig, right. All everybody. and morning,

Probably here just a given on than spoke call, less high-level a just with our for month this on perspective financials. a normal me little Slide X, bit the ago. Street we on But

million, the $XXX down off-highway. programs then and areas. currently production of would EV in year, reflecting softness, in the sales few as about progressed, on. One be nearly would that key increasingly to year markets sales weak we full the our some a saw I are For And say, in really we

the sales the our some fourth And -- a plant $XX to consolidation. is here our our in terms really color XX lower could I actions about quarter sort we QX and about about by million see of $XXX we the on here. bit of through improvement negative operating Again, there, program reduction benefits of We're we're in you the [Audio it's operating big the strong be to it that in the And And cash in flow, our and profitability, of We're later free as needs with XXXX. our XXXX with benefited operation with with you reduction, pleased our nowhere to early footprinting month, $XXX slightly as points. just cost talked a in and million but actioned, benefits see in lastly, up previously terms the improvement, good of our EBITDA, strong quarter, near performance. last position of million basis mentioned, share million margins in going flowing cost getting where In driving $XX from on. bank. of EBITDA to from Gap] the of and volumes million to think little $XXX guidance up performance starting

We have than free XXXX. more tripling in cash flow

this sort to of Turning month Slide is Again, from the a ago. deck the X. lift

team, our completing of with -- information a versus to early end we're the announce with strong I that very XXXX. the a to off-highway have I somewhere on we in we and execute don't interest, really and the report heavily robust agreements legal a with by ago and on fiscal focused Tim closing divestiture. Focusing very believe any can a new QX process continue and transaction the month

to In and critical that's EV, implemented communicated. marketplace, our terms That's us. fully the and been for of been approach

of I is And million worth the about $XX measured Power basis. somewhere that business hope from feel go-forward get run a our our consolidation of in rolled initiative. the some fact I of in think a Foster terms rate -- the that. well we've million taking And reduces of that it completing bit kind CapEx underway more that fully we're approach $XX derisks the information That's of really Technologies the we intensity It's or that leadership, to committed initiative. more that out, but been in the future. terms to here kind good capital Little level. much of in under on savings Byron

In X.X% towards terms continued million digit benefiting fully we're getting X.X% of financial XXXX. performance of commitments, the will to the that the operational up base fully in really pushing double of And in in here XXXX, margins our committed reduction from benefits course, new in to Dana strong cost and, $XXX to be XXXX.

use In to committed proceeds, of sheet. again, terms balance a strong of

of with But X, the want we'll be cycle. what through we does the a Board we're sheet when the -- that balance that. -- having on lower would we're cycle. probably be Xx that strong leverage day will have targeting conservative throughout a at that than That our not discussions suggest about mean Our net Xx were we to

me, that's seems Lastly of X, of our sort on consistent categorize few to flattish our backlog we've other our that guess year. and releases terms in a generally right year-over-year. Page this for markets comments far. in for about light is be on talking I I'd and seen just reflected That vehicle been with OEs what suppliers so And the now. are outlook

bit the prebuys with commercial the commercial the XXXX of In market. stabilize start to beneficial changes. towards here this vehicle a do emissions year associated legislation anticipate in sorry, vehicle, little of impacts -- end the and terms to see softness forward see We look of of of to

the seen a I in than In a terms -- talked say, we tight of little market. about actually better on January had actually view doing the It's I haven't guess similar numbers for would ago. market early our is month I bit February. weakness off-highway, and

get little on. But point out holding it seems Tim I'm quarterly call be yet, is up going would going are phasing later we to So into X thing had not turnaround than it our QX. comps volume year, to feared. I difficult off-highway with in and a from a a is obviously, we In year-over-year tough bit comps benefited going better and to strikes in but America. CV. have associated light here North QX then vehicle, And we've both to got last in lesser we pickup extent the to in

our about have I programs our from years. new off-highway. our can of I -- that lower the million next you backlog it's I'd backlog. before. backlog say, -- flows X EV just a remind to of got the that on guess backlog, tends year And of growth by million nonetheless, reflects, terms Obviously, that But opposed $XXX year. type $XXX each would see how strong we've our That it's to volumes in in largely really a little be we In plus Dana as the folks XX% down

dive sort that, Tim, with it deep So on of financials. over to you to the I'll turn

Timothy Kraus

good to and Bruce, morning Thanks, everyone.

to results fourth vehicle the on full fourth last billion, review And year a were column Beginning quarter production $X.XX lower Please $XXX and for turn currency impacts. XXXX. to Slide year our X for left with and below sales of million due quarter,

was $XX quarter quarter, the year, primarily $XX million For recorded of million, driven million for $XXX the EBITDA were the expenses. fourth better in and Full of for Adjusted organization. to year's million year. $XX year. compared The the point billion, last higher margin $XX fourth was that over million our weakness. no EBITDA net that our restructuring a year, last year income divestiture net actions year higher year the full Dana charges the as plan expected noncore and efficiencies this planned earlier attributable year. was was throughout XX basis higher improvement for was million margin million of better for million to by down profit saving $XX loss restructuring $XX.XX The savings $XXX primarily than adjusted longer in $XX occur improvement sales classified than to primary market $XX last the divestiture Net loss XXX transaction was X.X%, cost quarter. quarter than not as long-term implement of to cost announced X%, of difference loss is due and The third held year is previous a sale. lower and points million basis Full the $XXX charges Hydraulics profit million fourth driven profit end million, $XX did by business, for last and again this a

loss for rules. fair to assets compared adjust $X.XX this $X.XX share of per to net of due to the EPS was remains loss accounting value last year. recognized quarter However, a the was the to Adjusted carrying value

adjusted cash flow the year, free $X.XX And per $XXX year, for full a was for $XX year. EPS the improvement was $X.XX For share, for quarter, finally, million year. prior $XX better improvement $XX the the the the and million full than quarter million for million

organic to lower, incremental change the for turn quarter Slide strong across company the driven due XXX improvement and margin heavy sales higher. organic of Beginning basis of on $XXX sales improved on production me million generated vehicles. lower drivers profit cost sales OEM the $XX This now was with X the margin. were of the XXXX. EBITDA in Please fourth million by left, for to Adjusted entire and points efficiencies was

we the business call locks. in our cost-saving January, of in we detailed showing profit are impact As update our programs in our

XXXX, the various we fourth quarter fourth began took the profit cost quarter. $XX added actions of we savings For in the million through the program since in

euro primarily Foreign margin. value $X lower of million lower Profit dollar. to driven compared $XX to by by with decreased and currency was sales U.S. no the the impact million, translation by real

commodity year. customers, point quarter was benefit XX offset was prices our basis The profit cost the by commodity than timing Finally, mechanisms lower by million, prices, margin. lower fourth to commodity in lower $XX falling cost commodity due within resulting recovery to with the agreements in last recovery million decrement the being profit a the of $X

the to year for turn will drivers for XXXX. I and Slide Next, the of sales change XX full the profit

million driven for Adjusted market previous resulting improvement organic in across to were year, higher. was of on points improved For program, $XXX $XX second margin, basis added the XX margin. sales end the was organic to the fourth quarter due organization, demand million the was in fourth efficiencies This quarter. saving which the $XX by again, lower cost as EBITDA, strong in half the incremental cost shown year. the same lower, began sales million page EBITDA full The in adjusted in

translation million to no $XX currency margin. sales in by Foreign by $X impact with profit lowered million

recovery last lowered the fourth cost timing quarter margin. commodity to XX as was with than the customer a cost year, basis XX $XX Just the in Commodity million, agreements. million benefit profit lower as lower by of by fourth -- prices point offset quarter, point was mechanisms and $XX -- our was impact just the

driven taxes by mix the turn the off-highway million timing actions Free Please business and the XX adjusted timing use to full XXXX than for the costs for the $XX payables to was saving was partially you interest higher of cash as million flow. use and was than well Higher million, $XX higher due related Slide sale as free year. last of totaled regional payment capital onetime of net by year EBITDA now other higher Working to flow $XX offset working cost due details with to The payments capital. higher income. and the interest year. timing of lower of last and cash

lower, launch for was by driven a million programs. capital Finally, $XXX normalized lower EV and investment spending cadence

turn review for to Slide XXXX XX a guidance. our Please of

Our from remains unchanged update year our full guidance XXXX January. business call in

includes off-highway guidance not full our any year for reminder, the include a tariffs. and unidentified does impact the business from As

translation last year as midpoint basis This flow XXX at a year than range. cash than midpoint are expected is higher demand million lower ranges. about million well the delay for expected by range That of the free point and million the be Adjusted profit increase the implies million XXXX expecting $XXX currency in This $X.XX of driven of about this $XX of margin programs market is at higher our be the $XXX $XXX lower year, $XXX to than million over approximately a as for the We Full midpoint EBITDA year. billion is end some sales last impacts. EV is XXXX. XX%, approximately at of tighter to and year. is

Our the share $XXX range. the midpoint guidance per at of is EPS be expected to adjusted

profit full XX, year highlight you Please the sales with drivers and will now changes to expected compared I the to XXXX. Slide turn where of

change year, the This $XXX continued sales organic $XXX sales driven to EBITDA lower actions of to approximately offset increasing all We of are margin organic $XX demand lower improvements XX%. expected by on partially manufacturing this expected decremental million XXXX, due be about Adjusted million is basis a by in new in end growth and saving expecting markets, are for to by is XXX efficiency for the points. purchasing organization. Cost total margin million just business.

$XX million $XXX of on of translation be is million. profit currency to about Foreign impact approximately sales with a expected a headwind

Finally, recoveries about and due by of falling our a headwind other commodity is commodity outlook expected driven to lower million prices. steel to be sales to $XX

to in $XX X-way commodity pricing headwind expect governed with customers. the our due profit million recovery our a We by true-up mechanisms

our $XXX million of to with the cash anticipate XXXX. turn now free full me cash flow Please We for free Slide be about XXXX flow year outlook XX at range. for guidance the midpoint to on

finalize $XX the from capital this lower higher is Onetime million expect requirements about higher capital be will we We $XXX savings than about work as divestiture. cost spending million free costs invest of flow million $XX last off-highway $XX increased to million about year. Working EBITDA. year, and is be about adjusted in to expected $XX will which lower cash be program and our million

our in for of quarterly to markets last million in by to for disrupted a improved expected for production remain see the inventories year year sales cadence an XX the shows QX Lastly, phasing. the production beginning dramatically programs. market inventories back for UAW term, impact sales growth. our half vehicle The quarter of seeing turn that the the are slowdown normal our our and demand. normalize XXXX end in to be lower are year, number quarter, please of market vehicle a see and quarterly XX $XXX return Slide about we strike off-highway in a me we first due XXXX. America. near we'll where sales In with few outlook lower Page to This than as XXXX as our coming drivers There XXXX off light increased demand in will North high

between improvements million X% are expecting see and cost EBITDA will for margins million QX in quarter. about saving $XX We and $XX the in adjusted

for back start this turn I the morning, the will to call joining Thank session. to us and Regina now over you Q&A

Operator

Narayan question first the line our take from of We'll RBC Instructions] Markets. [Operator Capital Tom with

Gautam Narayan

that's I'll have okay. quick a just try if follow-up, to keep I it to one.

So the interest, January is know robust I and process this 'XX of lot and the a covered on strong call.

in only that signing Just like appear would QX -- away. months it that's X

guess, a from quick line specific further is something a then So based I prediction just interest, And this just time along follow-up. or bidders? there on interest of I is have

R. McDonald

Yes, Tom.

we get of be the process, but a have as going expect along So into the mentioned, number very transaction specific here numbers, -- parties. the a robust process to are with sign able not we the we we to in interested a in early well a to in I'm quarter. and second

Gautam Narayan

okay, up. it's If the follow Okay.

for on had So market vehicle flat. you the 'XX the guidance, light

suppliers just out We the some backlog you And light that $XXX across on that how have that of that kind your OEM this vehicle guys is specific Is perhaps understand have, get just from could to we the digits. can off-highway. then works the split geographics? heard other noting -- on down exposure, -- segments, million, with mid-single you so

R. McDonald

light vehicle vehicle first programs, the to I our overall -- not saw market. view related light to our -- is your the on Yes. really

really key remember, full-frame a in only You we of number even of or have on is truck, LV we the question, programs and play and sales not And within number Stellantis out predominant our the PT. a off one, backlog particularly. truck of is disproportionate of the in with majority full-frame vast got a that to Ford of

the the parts in is the majority of that light So business. of still vehicle driveline

Operator

of Our comes Colin from Langan Fargo. next line question the with Wells

Colin Langan

EBITDA be I valuation it question a assume is big than lot that's lot here, thinking guide. that we in It and Why about? -- more EPS on is Is what jumping the driver is basic seems there of a a guidance? change allowances seems like should why like a moving EPS Just the more. going taxes with but a the

Timothy Kraus

I is Yes. mean, Colin, this Tim.

ends -- So yes, rate essentially U.S., the more you normalized taxed up because the allowance. we X it changes, the a a up the rate, I get have in as of into allowance right, mean, income being valuation of because mix evaluation comes don't at the U.S., a if lot

sales, this So of of the it's just due until just going or more from to rate and to period year-to-year and on fair quarter-to-quarter. and the get we sort the of predict see a mix other bit income, to difficult volatility of off-highway kind of the also through around to and we're side amount this a especially through continue

R. McDonald

Yes. and of terms sort the benefit And we off I that $XXX rate? on tax like guess balance back million our that. after side sheet, just through the calling a of get following we the us up deleveraging We'll normal other I selling company be guess, to in a we're of highway, road mapping. get of

I would we we point won't relieve the some we as know Yes, changes valuation would that given there, able program, would obviously after the -- as be we well cost until anticipate expense to but mean, allowance probably get interest could we I saving agree. anticipate that. in the at

Timothy Kraus

being normal talking start And EPS flowing. about more

R. McDonald

Correct. Yes.

Colin Langan

So would from that a I have tax know turning unprofitable profits and be profitable. a U.S. no went sign those that. operations are your that this longer on

R. McDonald

that's big program saving predominantly in or disproportionately cost Yes, America North a And and U.S. in the chunk obviously, our of correct. is specifically

So help well. as that should

Timothy Kraus

U.S. have think why you so in that are benefited. It's the high now. like tax not we about Yes, it's losses

R. McDonald

Correct.

Colin Langan

Yes.

digits. S&P up you the for big about that Okay. assuming there question customer is because Are right. Super on you assumption the And to just platform if mix pretty has down similar then prior a guys, follow a because like double I'm Duty

that's it the to only flat? is case, if keep what so that And offsetting

R. McDonald

Yes.

that the we're So of is on models -- seeing. forecast the I mix way mean our based the we're way

us. or Super Duty, Duty Super have could to Duty, it so within do difference but depending mix, will on be though big We the down between of the all. a And digits, most double so even pretty there's not different digits a single overall even that even Super and impact mix

So especially They're still of gasoline done generally that some the few a extra... it's really low-end glorified XXXs in-house, powered. with F-XXXs are

Timothy Kraus

duty the expecting second it's super some we're fact shift the of also the offset -- line that second Yes. by Jeep somewhat occur, coming And -- not to a products inventory correction we don't on on.

think it's I Gladiator. for

Operator

Our with question of next Yu comes line the Deutsche Bank. Edison from

Xin Yu

I we around? high of that commercial was can when just It bit back more the And mean I vehicle. quarter thinking to weak. wanted seemed kind come that it, level seeing about just start a to turn

Timothy Kraus

you. with talk Edison, good is Tim. to This

things couple in So of a quarter CV. the for

think in There's a seeing question, fourth you onetime I impacted of quarter. couple part that that the of your should first quarter. last start that items really

end taking So some we to some where that item up And a up an well. that did as then in or for bad debt ended -- and the gone. business quarter adjustments having take had EV we given had we has recording warranty inventory inventory

So significant cost the CV program. million there's don't -- part to going and be savings through they coming forget of in as $XXX

Xin Yu

quick Got a Got you. follow-up. it. just And

follow-up point a good the a Just strong. quick of jumping that quite contrasting on vehicle for the Is 'XX? kind light was off

Timothy Kraus

Yes.

through. see I in. go really think the continued all start markets vehicle end the stabilize across expect the of strong we're benefits be production of we we cost to core flow for and and we as the But do continue all seeing we yes, light our improvement markets to sort in of going to both there as growth profit in savings margin see

R. McDonald

recovery. different in incur though, some to quarters in costs timing of and catch-up Yes. custom a quarters. recoveries And bit of in do of get We lumpiness, maybe see sort we tend

business is sort and always of lumpy that things like So that.

Timothy Kraus

mean, quarter down think that. Yes, would you anticipate the of But sales some sales strike. was we quarter-over-quarter -- coming how the are first of first given strong 'XX quarter, being if yes, off about I

on work side have So a can quarter cost even we I turn doing the margin strong still given in first business. believe the we're of the that, that we'll on despite that

Operator

next comes line the BNP Our Picariello with question from of James Paribas.

Unknown Analyst

Jake on for is James. This

clarity As the expecting? the of with Can about just the TMXput timing or payment on the you're potential we think option. magnitude discussions provide -- their think let's you around any about Hydro-Quebec

Timothy Kraus

Yes.

confident here get point. want don't But this Hydro-Quebec. continue into specific, able to through with anything So I'm work some to we pretty year get we'll done that be at something to but I

Unknown Analyst

then guys do and light of actually getting Power implement vehicle folded commercial Tech right. just vehicle? All to And When housekeeping. X re-segmentation into piece you expect the with

Timothy Kraus

We'll Yes. QX. during here be in that doing --

see So we report first LVCD. Tech folded when you'll having quarter, -- into Power we been

Operator

with next of JPMorgan. Our from comes question the line Brinkman Ryan

Ryan Brinkman

on excludes ability consistent the I guidance other curious quarter, supplier particular, note scenario ex impact to to what thinking to may obviously tariffs of with pass either predict especially costs Mexico, be exposure or this your you're how what I'm planning tariffs might on customers? and there doing Canada be tariff that your and difficult mitigate every about potential early the around

Timothy Kraus

ultimately is intend all position, to pass be -- So that we're business. our the we What we them. across looking any that will I we to to obviously put impacts from will our really to notice what tariff customers of the I at it. what And be. that's have impacts and you tell on predict, we're formally hard waver planning the the think through can dollar or as not impacts It's of said, every they

Ryan Brinkman

the would to $XX less Good future you the impressive of on And versus very then of greater saves maybe CapEx, in simply part? end lower games drifting say and amount. EV hear. XXXX, $XXX of of pursuit course, million opportunities how much efficiency relates other million of more revenue of this a much or the cost targeted strategy How to regarding your

Timothy Kraus

would expected million there's to get EV. have related that's sizable the want piece million to don't there $XXX the a mean related the that. that's all portion I total of but to Yes. large I specifics, $XXX change of flowing our to so through, the is strategy EV in you a into

you the year million, number. we very, going ability very full you And as end that million we that about million, is million is where already $XXX hit our the think between at quarter $XXX first Bruce certain. look we're up very, when we've $XX mentioned, think $XX for -- think to and if to million actioned the -- I think of $XX

would obviously, And next about I back I the type say roughly X% be years. the still we capital, couple of is In that than sort your on Yes. significantly to years, guess able in business, last were In reinvestment. few of the to question we return the higher we'll capital capital a and see -- do have balance to little some have in expect -- customers that expenditure require have beginning we programs you'll a of to sheet. expenditure, few fiscal offsets we us suppliers the we bit that this expect what will change sorry, capital the providing with But year.

Ryan Brinkman

you for synergies just us. light just from end check the Okay. dis-synergies of in those to same still perspective given savings commercial highlighting remember [indiscernible] Is and X a wanted I lastly, maybe or markets think sale be may there's reaction between supplying simpler been management synergies of off-highway will most by the across cost just price of markets, like that And multiyear structure then allow. your think sort supplying share it as in across at of positive earlier, that the But or even between reasons comes catalyzed such and and curious. I X and commercial light plan. there it it why on it's a the and to what the cost multiple can sounds corporate the be X, time But it's you the and -- the sale, are that --

R. McDonald

I about it's variable. get to maybe we've [indiscernible]. how continuing costs, to costs few and all, stranded talked first Yes, allocated them corporate dis-synergy our that. We're of do away. there's Yes a off-highway some chip I'll a But definitely associated guess, basically, and -- to let very of are me

away. with that corporate but go our the a have that dis-synergy we to chip is will of sale, costs Some

and of and common lot Secondly, and like steel similar we components I gears think things that. do about we like a buy things

you we're of purchasing benefit very to it Yes, scheme leveraging is having to in the business So point doing that the And value equal, our market doing in But highway at of very off-highway to capture reacted things the it will a has that's maybe for look of reflected favorably terms our not synergies. have for there things, of it's others. a because our that the delta. terms It's footprint. the it that Tim, so in your may scale going just at, few And driver recognized in not -- being and versus the trades about capture is manageable. spoken, value the it's all of certainly stock business market. sure, price, being for stock the multiple We're straightforward. prices sell the we're

Timothy Kraus

Yes.

certainly geography. I and and think process are of also but the LV much terms aligned more in both product CV businesses

American just primarily are X those are So businesses that North businesses.

unlock we've end So there there thought think new certainly dis-synergies, to of synergies about But the any happens thing Dana those taken those more margins that than -- where other between off-highway into those up. value consideration the and and business. is the here we as we've about how

think when has this get on of margins other XX.X% the side when we thing, impacts. in new the those already data about we So XX%, that

and of about we reducing get stranded So the are showing the -- currently actioning have -- related sale. Bruce we're focused to transaction that and as we $XX worth that through we after on mentioned, million fully costs

Operator

from line UBS. come question Joseph of Next will with the Spak

Unknown Analyst

just Joe. following It's on backlog up Maybe on the Aljandro question. for

of XX% I think be you highlighted sort off-highway. roughly will in

should So that split? CV of XX% about be I LV the I or and how thinking should LV, the sort in remaining think about

R. McDonald

I think look, numbers XX-ish those percent mean, move rough of I terms Yes. around. or they whatever in are

there, based, through backlog mean, market is yes, to in the of but isn't business. I typically There But a lot business, the we're share is looking backlog. backlog X not got little years. in the remember backlog usually there of a You It's at there CV bit it's number not a catalog-based

Unknown Analyst

it. Got

maybe And a as follow-up. Okay.

in give You your remarks. us prepared maybe Can mentioned color XQ some you additional some on that? weakness in just

R. McDonald

can little of see of QX. be you markets see end come a won't first Page as if And think the through then that you we'll bit additional it cadence. of the I look as see but Yes, start QX reflect sort weakness QX. And the at really and across deck, in we'll bars XX in dramatic recovery quarter, that to

Operator

final line of question the will Barclays. with come Levy Dan Our from

Dan Levy

I of apologize in if is here idea vehicle But a automakers how it's you super mentioned incremental much the could see if tail potential I'm that to the to backlog talk late, so given much subsequent the of there reflecting added programs. side, periods? within earlier. activity we And current the just vehicle light longer ice of light of see this could could backlog cycle as extensions be

Timothy Kraus

we calculate of couple things. backlog it's a so the way Remember, Dan, incremental. is truly

in volume backlog. programs on count So our vehicle we the don't additional

You should to to just -- -- the backlog across able amounts and should the 'XX, would X-year our be constant get just add to FX, were period, sales be to you you in what our will hold in 'XX, commodity if 'XX. sales resulting be you volume the

idea but our that, be on lot in the there's It will. a would programs, hey, to more be it be current going in that outlook, our not our backlog. So volume market would

automakers, Now if pure they go volume. or something the something bring to we would not previously to or out made sold a but brand-new backlog, haven't that, variant like that

Dan Levy

Great.

And your out with Okay. And the us you just this timing remind this effects of potential passing news a how just played then this follow-up, to can the [indiscernible] of saw are we just in when XXXX? on as and you of what customers? aluminum,

R. McDonald

Yes.

What of more notice. we the [ other we looking they're the work on to So about customers Maquilas continue at to how this of on is business, be have some earlier. know we'll up more. all as have of what the to we obviously came and X within formal are our likely that. other with I supply know But and nuances chain, through bit know the ] kind And impacts deal going little put like we've thing done the a we -- we

formally going we notified we them So that it our comes we pay. through of them pass is tariff intention of that that it to -- to dollar as they're a that that result through and expect every

Timothy Kraus

back vehicle is we're that, now you about Yes. I'd we I have business, think far been maybe than if guess light to add Dan, would indexed then. more the

it than in we indexes have XXXX. was up the tariffs and higher to So extent in the back mechanism drive recovery costly already through places

R. McDonald

in that going that Yes. least commodity gets And agreements. our at we're XX%, to eat view get XX% is you current not doesn't the but our recovered

know and in of the be or just We the the our But our pay will every may is don't dollar. our be it reflected We if that expectation don't day, at indexes also it customers surcharge. intention will end not, know.

Craig Barber

Okay. the Maybe Dana concluding leaders few improved team remarks. to financial of and just in for a thank delivering I'd our our guess, I all, first results. like

return same with have. at be Thank balance progress sheet year our making us progress us time, forward be space. while you, to excited enabling unlock best-in-class the time. left value, shareholder really $XXX I me, in actioning I to is team the significant look a our business our sharing the X capital million everyone. really that for to it's to road and off-highway shareholders months' the we to to here, I'm for sale personally, in and Dana. cost map good -- For going feel reduction about be transformational of XXXX going is in the is The our

Operator

That call. Thank all for will conclude joining. you today's

now may disconnect. You

Dana (DAN) 20 Feb 252024 Q4 Earnings call transcript