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Dana Inc. reported a net loss and sharp decline in revenue in the second quarter as its global business segments adjusted to unprecedented conditions in the midst of the novel coronavirus pandemic.
For the period ended June 30, Dana reported a net loss of $173 million, or minus $1.20 per diluted share, compared with a net loss of $66 million, or minus 47 cents, a year earlier.
Second-quarter earnings were reduced due to higher income tax expense, the result of recording $56 million in valuation allowances in foreign jurisdictions, according to the Maumee, Ohio-based company.
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Revenue plunged to $1 billion, and Dana cited weaker demand across all mobility markets due to customers idling operations through the first half of the quarter. A year earlier, revenue reached $2.3 billion.
“I would like to thank the global Dana family for their dedication and resolve to safely bring our operations back online around the world,” Dana Chairman and CEO James Kamsickas said in the earnings release. “Throughout this journey, our team has not only demonstrated remarkable flexibility managing our multimarket operations and integrated supply chain but has also answered the call across our communities to help so many people who have been impacted by this virus. As we continue to navigate these unprecedented times, Dana is financially strong and positioned for growth across the multiple end markets we participate in.” Sales in all business segments fell in the quarter.
- Commercial vehicle: $200 million in Q2 2020 compared with $437 million a year earlier.
- Off-highway: $401 million compared with $674 million.
- Light vehicle: $337 million compared with $927 million (largest drop of the quarter).
- Power technologies: $140 million compared with $268 million.
For the six-month period, Dana reported a net loss of $135 million, or a loss of 80 cents per diluted share. That compared with net income of $35 million, or 21 cents, in the 2019 period. Revenue reached $3 billion compared with $4.4 billion a year earlier.
Dana noted in the earnings report it had access to ample liquidity.
The company reported it had total liquidity of $1.7 billion as of June 30, including $708 million of available cash and marketable securities and $979 million available on its committed revolving credit facility.
“Our timely cost-saving actions and operational flexibility have served us well as we managed through this difficult quarter,” Chief Financial Officer Jonathan Collins said. “We remain confident in our ability to capitalize on improving market conditions over the balance of the year.”
Dana, which operates on six continents, provides power-conveyance and energy-management solutions for light vehicles, commercial vehicles and off-highway equipment — including drive and motion systems, electrodynamic technologies, and thermal, sealing and digital solutions.
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