Weaker Commercial Truck Market Clips Earnings at Dana Inc.
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%.
The company 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, it said.
Dana affirmed its full-year guidance of sales of $5.7 billion and earnings per share of $1.75.
