Dana Inc. reported higher second-quarter revenue and net income as it underscored its growth opportunities as an e-propulsion design, engineering and manufacturing systems supplier.
Net income for the period ended June 30 hit $124 million, or 74 cents per diluted share, compared with net income of $71 million, or 68 cents, in the 2017 period.
Sales totaled $2.1 billion, up 12% compared with $1.84 billion in the same period of 2017.
New business wins and higher end-market demand lifted revenue, as did Dana’s recent strategic acquisition of TM4, whose core technologies include electric motors, power inverters and controls.
“This transaction is a game-changer, as it positions Dana as the only full e-propulsion design, engineering and manufacturing systems supplier. TM4’s core technologies … are applicable to all mobility markets that we serve and are a vital part of Dana’s broader enterprise strategy going forward,” CEO James Kamsickas said in a press release.
The TM4 transaction establishes a world-class e-technology center of excellence in Québec and enhances Dana’s electric-vehicle market presence in China, according to the Maumee, Ohio-based company.
In addition, sales in its commercial vehicle business climbed to $411 million, compared with $357 million a year earlier. Dana’s drivetrains for linehaul and heavy-haul trucks include axles and driveshafts marketed under Spicer and other brand names.
The quarter included one-time tax benefits of $39 million, primarily relating to recognition of federal tax credits and enacted state tax law changes. Partially offsetting these benefits was a $20 million noncash charge to write down intangible assets, driven largely by the repurposing of certain resources to electric-vehicle propulsion, according to the company.
Dana is an international supplier of engineering products for the passenger vehicle, commercial truck and off-highway markets, in addition to industrial and stationary equipment applications. It supplies steer axles, steering shafts, driveshaft assemblies, engine gaskets, hub systems and a tire-pressure management system that features self-inflating tires.