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Dana Inc. reported increased net income and revenue for the third quarter, citing strong customer demand in its heavy-vehicle markets.
Net income for the period ended Sept. 30 reached $50 million, or 33 cents per diluted share, compared with $45 million, 31 cents, a year earlier.
Revenue at the Maumee, Ohio-based company increased to $2.2 billion compared with $1.9 billion in the 2020 period.
Its profit margin in the quarter dipped to 9.5% compared with 10.1% a year earlier, and was due entirely to raw material cost inflation, it reported.
Sales in its light vehicle segment rose to $918 million compared with $913 million a year earlier. Commercial vehicle sales of $396 million were $79 million more compared with the 2020 period. Off-highway sales rose to $627 million compared with $504 million a year earlier. Power technologies sales inched up $3 million to $263 million in the quarter compared with a year earlier.
“Rising commodity costs, supply chain constraints and labor shortages across the entire global mobility industry continue to impact our business,” Dana Chairman and CEO James Kamsickas said in a release. “While we expect these challenges to continue in the near-term, we remain diligent in working to offset and recover these higher costs through our established mechanisms.”
He said Dana expects suppressed end-market inventory levels will continue to drive high consumer demand, “and Dana is well-positioned to capitalize on the cyclical growth opportunity as the various challenges facing our industry begin to subside.”
It reported the Class 8 sales backlog is above pre-pandemic levels. Construction inventory is dramatically low. And there is historically low light-vehicle inventory.
Demand continues to be constrained by supply, Dana noted.
“Challenging market dynamics have pressured our third-quarter results, and outlook for the remainder of this year,” said Dana Chief Financial Officer Jonathan Collins. “Our revised guidance is primarily driven by customer production levels that were lower and less consistent than we had previously expected, and by commodity inflation. Though the near-term outlook remains constrained, we believe the current market dynamics not only position us for robust cyclical growth but also for Dana to achieve above-market secular growth driven by our transition to electrified mobility.”
Dana reported it expected electrification sales to be $350 million in 2021, doubling to $700 million by 2023 and reaching $3 billion in 2030.
The company said its 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 reported sales of $7.1 billion in 2020 with 38,000 associates in 33 countries across six continents.
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