BUZZ-Shares of Dana rise on CEO appointment, cost-cutting plans
Shares of Dana Incrose 3.8% following the appointment of Bruce McDonald as chairman and CEO, succeeding James Kamsickas. The company announced plans to sell its Off-Highway business and initiated a cost reduction plan aiming for annualized savings of $100 million by 2026. This includes significant cuts in selling, general, and administrative costs, as well as engineering expenses. Dana reaffirmed its FY 2024 sales outlook of $2.2 billion to $2.4 billion, despite a 39% decline in stock value this year.
Shares of auto parts supplier Dana Inc (DAN.N) up 3.8% at $9.2 aftermarket
Dana appoints Bruce Mcdonald as chairman and CEO following the retirement of CEO James Kamsickas
DAN announces plan to sell its Off-Highway business that provides drive and motion systems for heavy-duty vehicles
Initiates $200 mln cost reduction plan, expects annualized savings of $200 mln by 2026
“This includes substantial reductions in selling, general & administrative costs across all the Company’s businesses and engineering expenses to match current industry dynamics, including the ongoing delay in the adoption of electric vehicles” — Dana
Reaffirms its previously announced FY 2024 outlook range for sales of $10.2 bln to $10.4 bln
Up to Monday’s close, stock had fallen ~39% this year
