Dana Q3 net income drops to $57 million

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Automotive News  /  October 20, 2016

Dana Inc., the longtime supplier of various drivetrain components, today reported net income of $57 million in the third quarter, down 52 percent from the year-earlier period as sales from its commercial-vehicle units fell again.

The company noted, however, that the year-earlier period included a $100 million tax benefit “from the release of certain U.S. deferred tax valuation allowances and a $24 million after-tax impairment charge.”

When adjusting for those items, third-quarter net income increased compared with last year. Earnings before expenses such as interest and taxes improved by $1 million to $168 million, the company said.

The supplier, based near Toledo, Ohio, posted third-quarter sales of $1.38 billion, down 6 percent from the year earlier period.

"Dana posted a solid quarter overall despite continued macro headwinds, which we believe will come as somewhat of a relief given the negative sentiment that seemed to be building into the quarter," analysts from Barclays wrote in a report today.

Commercial-vehicle driveline sales tumbled 20 percent from the year-earlier period to $294 million in the third quarter.

Dana blamed the decline to weaker Class 8 truck production in North America and the transfer of a customer program to light-vehicle driveline reduced sales by $73 million.

Light-vehicle driveline sales rose 4 percent to $631 million in the third quarter. Similarly, Dana’s power technologies unit reported sales of $260 million, also up 4 percent from the year earlier period.

On Aug. 1, the company formally changed its name from Dana Holding Corp. to Dana Inc. Earlier this month, Dana announced that it reached an agreement to buy Brazilian forged-components supplier Sifco S.A.

"This is an opportune time to invest in strategic and selective assets in Brazil that will further strengthen our position as one of the most trusted, top-tier suppliers to the mobility industry -- thus positioning us for future profitable growth throughout the region," CEO James Kamsickas said in a statement.

The transaction is expected to be completed by the end of the year.

Dana ranks No. 39 on Automotive News’ list of the top 100 global suppliers, with worldwide parts sales to automakers of $6.1 billion in 2015.

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Weaker Commercial Truck Market Clips Earnings at Dana Inc.

Transport Topics  /  October 20, 2016

Commercial vehicle supplier Dana Inc. reported third-quarter earnings of $57 million, or 39 cents per share, compared with $119 million, or 75 cents, a year earlier, which reflected a $100 million tax benefit.

Sales totaled $1.38 billion, compared with $1.47 billion in the 2015 period, the Maumee, Ohio-based company said Oct. 20.

Sales at its commercial vehicle driveline technologies business were $294 million, down 20% compared with $367 million in the 2015 period.

Dana attributed the bulk of the $73 million decline to weaker Class 8 truck production in North America and, to a lesser degree, to the transfer of a customer program to its light vehicle driveline unit, which accounted for $13 million.

It said the commercial driveline segment’s earnings before interest taxes depreciation and amortization was $23 million, $8 million lower than 2015, resulting in a margin of 7.8%.

Dana forecast North American heavy-duty truck production in 2016 would fall to 220,000 to 230,000 units, compared with 323,000 in 2015.

Medium-duty production was expected to be 230,000 to 240,000 in 2016, compared with 237,000 last year, Dana said.

Dana affirmed its full-year guidance of sales of $5.7 billion and earnings per share of $1.75.