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Dana Inc. reported higher first-quarter net income and revenue and noted its once-shutdown end markets have recovered.
For the period ended March 31, Dana posted net income of $68 million, or 48 cents per diluted share. That compared with $38 million, 40 cents, a year earlier.
Quarterly revenue totaled $2.26 billion compared with $1.93 billion in the same period of 2020, representing a $337 million improvement driven by strong customer demand and the conversion of sales backlog, according to the Maumee, Ohio-based company.
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“While our end markets have recovered from last year’s shutdowns, higher costs related to supply-chain disruptions and shipping constraints continue to challenge the mobility industry,” said Chairman and CEO James Kamsickas during the earnings call.
“Our established multi-end-market presence tempers these outside pressures,” he said, “as we continue to execute our enterprise strategy, launch our significant new business backlog, and focus on strengthening our vehicle electrification position.”
All of its business segments posted higher revenue compared with a year earlier.
Revenue in its commercial vehicle segment increased to $352 million compared with $333 million in the same 2020 period.
“The heavy-vehicle market continues to be strong, particularly in North America,” Kamsickas said. “The rebound of Class 8 truck sales continues as we’re expecting production to be around 300,000 units. The medium-duty segment also remains strong.”
Revenue at its light vehicle segment led the way with revenue of $991 million compared with $808 million a year earlier.
Off-highway segment revenue was $632 million compared with $532 million a year earlier.
The power technologies segment posted revenue of $288 million compared with $253 million a year earlier.
As for vehicle electrification, Kamsickas said, “It isn’t just a far-off ambition for the mobility industry, it’s right here, right now, and we are investing in the infrastructure needed to meet this demand.”
“We are adding manufacturing capacity in a measured fashion,” he added. “By expanding our electrification manufacturing footprint, not only are we installing the capacity to support current and future volumes, we are also strengthening our electrification design, engineering and manufacturing capabilities across the globe.”
Kamsickas concluded the earnings call by noting he was very optimistic.
“The business is growing. Profits are returning to normal levels,” he said. “I’d almost put it into the phrase of this is what we’ve been waiting for. This is what we’ve been preparing for. And I think the team has done a remarkable job.”
The company reported sales of $7.1 billion in 2020 with 38,000 associates in 33 countries across six continents. It designs and manufactures propulsion and energy-management solutions for all mobility markets across the globe.
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