Dana Reports Q3 Net Loss, Revenue Gain
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Dana Inc. posted mixed results in the third quarter, citing ongoing supply and production disruptions.
In the quarter ended Sept. 30, Dana reported a net loss attributable to the company of $88 million, or a loss of 61 cents per diluted share, compared with net income of $50 million, or 33 cents, a year earlier.
The company reported the net loss was related to a commercial vehicle goodwill impairment charge attributed to continuing cost inflation, demand pattern disruptions and higher discount rates.
Revenue, however, reached $2.5 billion compared with $2.2 billion a year ago.
Compared with a year earlier, revenue from its light vehicle segment was $1 billion compared with $918 million; in commercial vehicles was $505 million compared with $396 million; in off-highway was $694 million compared with $627 million; and in power technologies was $289 million compared with $263 million.
“Dana generated solid earnings and free cash flow [$77 million] again this quarter as end-market demand remained strong despite ongoing supply and production disruptions impacting the global mobility industry,” Chairman and CEO James Kamsickas said in a release.
“While record inflationary costs continue to be a challenge, I am very proud of the perseverance and dedication our team has displayed while executing our enterprisewide transformation that has led to significant new business growth in both traditional and electric-vehicle solutions. Dana is well positioned to finish the year strong and capitalize on new opportunities across our markets once this environment begins to stabilize,” he added.
In its presentation, the Maumee, Ohio-based company noted original equipment manufacturers’ supply constraints were driving volatile demand, leading to inefficient, stop-and-go production, so:
- Disrupted order patterns continued.
- The largest impact was in the light-vehicle markets.
- OEM supply constraints will likely continue for remainder of the year.
Other cost inflation factors:
- Net inflation sequentially higher, in-line with current guidance.
- Cost recovery actions continue.
- Strong U.S. dollar translating to lower sales and profit.
- Metals prices moderating.
Factors related to on market demand:
- Dealer vehicle and equipment inventories remain low.
- User demand for key vehicle platforms remains strong.
- Order book remains strong for heavy vehicles into 2023.
The company reported EV penetration at all levels and markets with its components, systems and integration.
Key commercial electric vehicle customers include: The Lion Electric Co.; Paccar Inc.’s Peterbilt Motors Co., Kenworth Truck Co. and DAF brands; Traton Group, the parent of Navistar’s International brand; and Volvo Trucks North America. It also serves Oshkosh, Xos, Freightliner Custom Chassis, a unit of Daimler Truck North America; Lonestar Specialty Vehicles, a manufacturer of electric terminal tractors; and electric work truck and chassis manufacturer Bollinger Motors — among many others in its various segments.
Dana’s commercial vehicle products include active and passive system controls, drive axles, e-axles, inverters, cylinder head gaskets, fuel cell plates, and battery, motor and electronics cooling systems.
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