Dana Divests European Hydraulics Business To HPI Group To Streamline Portfolio
Portfolio Pulse from Nabaparna Bhattacharya
Dana Incorporated (NYSE:DAN) announced its plan to sell its European hydraulics business to HPI Group, aiming to streamline its portfolio and focus on industrial system sales. The deal includes operations in Italy, France, and Germany, and is expected to close in the first half of 2024, pending regulatory approvals. This unit generated approximately $90 million in sales last year. Dana reported Q4 sales of $2.494 billion, missing expectations, and forecasts FY24 sales between $10.65 billion and $11.15 billion.
February 21, 2024 | 11:40 am
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Dana Inc. plans to sell its European hydraulics business to HPI Group, focusing on streamlining its portfolio. The deal is expected to close in H1 2024. Dana reported lower Q4 sales than expected and provided FY24 sales and earnings guidance.
The sale of Dana's European hydraulics business to HPI Group is a strategic move to focus on core operations, which could be positive in the long term. However, the recent miss in Q4 sales and the provided FY24 guidance introduce uncertainty about short-term performance. The neutral score reflects the balance between potential long-term benefits from streamlining operations and short-term uncertainties.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100