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Dana Inc. reported net income and revenue fell in the third quarter even as its markets rebounded from the ongoing novel coronavirus pandemic.
Net income for the period ended Sept. 30 dropped to $45 million, or 31 cents per diluted share, on revenue of $1.99 billion. That compared with net income of $111 million, or 77 cents, on revenue of $2.16 billion in the 2019 period.
Lower profit in this year’s third quarter was more than offset by improved working capital efficiency, lower cash taxes and interest, and lower capital expenditures, compared with the same period last year, according to the Maumee, Ohio-based company.
Commercial vehicle revenue fell to $314 million compared with $398 million a year earlier. Off-highway revenue fell to $507 million compared with $582 million a year earlier.
On a sequential basis, overall revenue in the third quarter increased $916 million, or 85%, compared with the second quarter of this year due to increased demand as customers rapidly resumed production after some pandemic-related restrictions were lifted.
“As our multiple end markets rebounded from the unprecedented global COVID-19 pandemic shutdown, I want to commend the Dana team for an outstanding job, first and foremost ensuring the safety of our people, while successfully bringing our global manufacturing operations back online to meet growing customer demand,” Jim Kamsickas, Dana chairman and CEO, said in a release. “Light truck and agriculture demand were especially strong, while many other markets, such as commercial vehicle, realized strengthened production volumes this quarter.”
He added: “We remain intensely focused on helping our customers navigate these challenging times all while remaining diligent about safety, cost management and strengthening our e-Propulsion capabilities.”
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Dana also announced with the release of its earnings it acquired a noncontrolling stake in Pi Innovo, a provider of embedded software solutions and electronics control units for the light vehicle, commercial vehicle and off-highway markets.
Dana reported it had total liquidity of $2 billion as of the end of the quarter, including $976 million of available cash and marketable securities and $979 million available on its committed revolving credit facility.
“The improving business conditions across all of our global end markets have enabled us to reinstate our revised, full-year financial targets,” said Dana Chief Financial Officer Jonathan Collins. “Dana remains financially strong, and we are well-positioned to capitalize on the strengthening of our businesses through the remainder of this year and into next year.”
Its 2020 full-year financial targets include, in part:
- Sales of $6.6 billion to $6.9 billion;
- Diluted adjusted EPS of 35 cents to 55 cents.
Dana is a supplier to light vehicles, commercial vehicles and off-highway equipment. Its products enable the propulsion of conventional, hybrid and electric-powered vehicles, and it equips its customers with critical drive and motion systems; electrodynamic technologies; and thermal, sealing and digital solutions.
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