Dana Reports Gain in Q1 Revenue, Lower Net Income
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Dana Inc. reported first-quarter net income dropped and revenue slightly increased.
It also forecast North American Class 8 volume is expected to increase in the second half.
Net income for the period ended March 31 fell to $20 million, or 12 cents per diluted share, compared with $68 million, 48 cents, a year earlier.
“External factors continue to pressure our margins and free cash flow as rapid inflation of energy, services, and labor are further driving up costs,” Chief Financial Officer Timothy Kraus said in the earnings release. “While we see some improvement late this year, we anticipate these factors will remain a profit headwind. We have adjusted our financial targets to better reflect the conditions across the mobility markets and continue to aggressively work to mitigate the impact of these challenges and position ourselves to capitalize on strong end-market demand and low vehicle inventories once the global environment stabilizes.”
Revenue in the quarter edged up to $2.4 billion compared with $2.2 billion in the same 2021 period — driven by strong customer demand in its heavy-vehicle markets and the recovery of commodity costs and inflation, according to the Maumee, Ohio-based company.
Its commercial vehicle segment notched revenue of $463 million in the quarter, compared with $349 million a year earlier. In the commercial vehicle markets, Dana’s primary business is driveline systems for medium- and heavy-duty trucks and buses, including the emerging market for hybrid and electric vehicles.
The light vehicle segment posted leading revenue of $985 million compared with $991 million in the 2021 period.
Its off-highway business had sales of $744 million compared with $635 million a year earlier.
Its power technologies business posted flat sales of $288 million.
“Dana saw continued sales growth in the first quarter despite record inflation, rising commodity costs, and ongoing global supply chain disruptions,” said Dana Chairman and CEO James Kamsickas. “As the entire mobility industry navigates soaring costs and geopolitical unrest that is greatly impacting the energy and transportation sectors, Dana continues to actively manage through these cost pressures as well as navigate through erratic and short notice customer demand changes.”
He said Dana continues to launch new products and deliver on its $400 million of new business sales backlog coming online this year.
As for electrification, the company noted it has substantial electric vehicle products in “launch readiness.”
Its off-highway electrification is advancing in key markets, it reported.
In its light vehicle segment, Dana reported it has a vertically integrated complete e-propulsion system with three times the content per vehicle compared with a traditional internal combustion engine program.
Looking ahead, Dana’s targets for 2022 include revenue of $9.8 billion to $10.3 billion. That was up from $9.6 billion to $10.1 billion the company forecast in its fourth-quarter report.
Dana, founded in 1904, is a leader in the design and manufacture of propulsion and energy-management solutions for all mobility markets across the globe. The company’s conventional and clean-energy solutions support nearly every vehicle manufacturer with drive and motion systems; electrodynamic technologies, including software and controls; and thermal, sealing and digital solutions. It has 40,000 associates in 32 countries across six continents.
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