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Dana Reduces Operating Costs Due to Lower Demand
Dana Inc. announced it significantly reduced operating costs, secured $500 million of incremental liquidity and temporarily suspended its quarterly dividend due to lower customer demand.
“These additional cost-flexing actions are aiding us in aligning our cost structure with the reduced production volumes across the mobility markets,” said Chairman and CEO James Kamsickas.
“We continue to prioritize the safety of our employees and service to our customers, and we have the operational flexibility needed to be responsive during this difficult situation.”
Kamsickas
The commercial vehicle market, for instance, continued to weaken in the first quarter, and then the coronavirus struck and upended the economy, industry analysts said.
At the same time, the Maumee, Ohio-based company reported it had $650 million in cash and marketable securities as of March 31, and currently has $679 million available on its committed revolving credit facility, as well as $500 million on its new bridge facility for total liquidity of more than $1.8 billion.
The company said it has no meaningful debt maturities before 2024. — Transport Topics
