Dana Q1 net income jumps 67%

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Automotive News  /  May 2, 2017

Dana Inc.’s first-quarter net income rose 67 percent to $75 million on the strength of new business with automakers, greater demand for light trucks and improvement in various other business lines.

The longtime Ohio-based axle and powertrain supplier said higher sales were offset somewhat by higher transaction costs related to acquisitions such as U.S. Manufacturing Corp., a company that makes axle housing and driveline shafts in the Detroit suburb of Warren, Mich.

Revenue bumped up 17 percent to $1.7 billion in the quarter.

Among its business lines, Dana said light-vehicle revenue reached $761 million, up by 24 percent, and off-highway business climbed 36 percent to $328 million.

The company said it will maintain a cautious outlook for power technology sales, despite a strong incremental quarter. Dana reported record sales in the department -- $283 million -- compared with last year’s $262 million -- because of strong demand in North America, Europe, and China.

“Broadly speaking, we had a really strong performance in power technology,” Dana CFO Jonathan Collins said during a conference call. “Candidly, the business is just performing really well.”

Dana anticipates full-year revenue of $6.2 billion-$6.4 billion.

Dana Inc., formerly Dana Holding Corp., is headquartered near Toledo in Maumee, Ohio. It ranked No. 39 on the Automotive News list of top global suppliers in 2016.