Dana Shares Rise 8.2% After Cost-Cutting Plans, New CEO Appointment

Dow Jones11-27

By Ben Glickman

Shares of Dana climbed after the company outlined a cost-savings plan, said it would sell its off-highway business and named a new chief executive.

The stock was up 8.2% to $9.61 in Tuesday trading. Shares are down about 34% this year.

The Maumee, Ohio, company, which makes axles, sealing and other parts for the auto industry, said late Monday it was planning to cut about $200 million in annual costs by 2026, including by substantially reducing selling, general and administrative expenses. Dana said it would slash its capital spending to reflect slower-than-expected demand for electric vehicles.

Dana also has engaged advisers to sell its off-highway business, which makes parts for vehicles used in industries such as farming, mining and construction. The company said it would use the proceeds from a potential sale to strengthen its balance sheet by reducing leverage, as well as returning capital to shareholders.

Dana said it believes there is strong interest in the business, but noted there can be no assurance that a deal will happen.

The company said that CEO James Kamsickas would retire and depart the board of directors, effective immediately. He will stay on as an adviser through March 2025.

Dana named board member R. Bruce McDonald as its next CEO. McDonald has served on the company's board since 2014, and was previously CEO and chair of automotive supplier Adient. He also held senior executive roles at Johnson Controls.

The company said it had retained an executive search firm to help find its next permanent CEO.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

November 26, 2024 14:19 ET (19:19 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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