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May 2, 2019 2:15 PM, EDT

Dana Posts Record Sales in First Quarter, but Net Income Dips

Dana truck jeep Dana saw record sales in the first quarter, but that didn't translate to record profits. Dana said the reason for that was $32 million in one-time costs related to acquisitions. (TT file photo)

Dana Inc. reported record first-quarter sales for 2019, seeing a 5% increase to $2.16 billion, compared with $2.14 billion in the year-ago period, according to a company news release.

The Maumee, Ohio-based supply company said it benefited from clearing a sales backlog and saw higher consumer demand.

The increased sales put net income at $98 million for the first quarter, compared with net income of $108 million in the same period last year, a drop of 9.3%.

Dana said the difference was because of $32 million in one-time costs related to recent acquisitions. Partially offsetting these expenses was lower income tax expense in the first quarter of 2019, the company said.

On March 1, Dana announced it bought the drive-systems segment of the Oerlikon Group, including the Graziano and Fairfield brands, expanding the company’s capabilities in electrification and growing its manufacturing market segments.

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Earnings per share were 68 cents compared with 73 cents in the first quarter of 2018.

Profit in the first quarter of 2019 benefited from organic and inorganic growth, Dana reported, partially offset by higher commodity costs and the impact of unfavorable currency translation because of the strengthening of the U.S. dollar. The company operates in 33 nations.

Dana affirmed previously announced guidance for 2019 sales of ranging between $8.95 billion to $9.35 billion.

“Our strong first quarter supports delivering our full-year guidance and keeps us firmly on the path to achieve our long-term targets,” said Jonathan Collins, Dana executive vice president and chief financial officer. “Our outlook for 2019 and 2020 continues to be positive due to our robust sales backlog, stable end markets and accretive acquisitions.”

Dana’s commercial vehicle offerings include axles, tire-pressure management, seals, gaskets, engine oil cooling and exhaust gas heat recovery.

Founded in 1904, Dana has more than 30,000 employees in 33 countries on six continents.