Dana Inc Q1 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Aileen Elizabeth Smith - BofA Securities, Research Division - Analyst : I wanted to ask the first question around cost inflation. And on the one hand, you have the commodity cost recoveries with your customers that are contractual and you're making good progress on that front. But the cost inflation's everywhere and you've pointed out and you've commented a couple times the $120 million net expected impact in your outlook. It's clear to us that automakers have been successful in passing on incremental cost, whatever form it may take, to their customers in the form of price. So based on your experience with inflation and discussions with your customers over the past few months, are automakers more receptive to maybe taking on some of the incremental cost burden beyond commodities? And do those or can those come in the form of recoveries or rather just help from a pricing or a booking perspective for new business?

Question: Aileen Elizabeth Smith - BofA Securities, Research Division - Analyst : Got it. That's helpful commentary. And then second question. I wanted to get some clarity around the EV business. You cited I think on Slide 14 that investment in the growing EV business is offsetting profit contribution from early low volume programs. And I think Tim mentioned that in total, the incremental EV business is expected to be a modest EBITDA loss for this year. The early low volume programs being profitable outside of investment in the business, would you say that's better than expectations? And what confidence does that give you in terms of some of the targets you've provided at your Capital Markets Day last year? Specifically, what I think was adjusted EBITDA breakeven around 2023 and then adjusted EBITDA accretive by the end of the decade?