Trucking Suppliers Report Higher 3Q Earnings
Several trucking industry suppliers reported higher third-quarter earnings, citing strength in North American on-highway markets.
Eaton Corp., which makes transmissions and other components, reported higher earnings as sales and operating profit improved in its vehicles business.
The segment’s operating profit rose 9% to $176 million from a year ago, while sales gained 5% to $1 billion, Eaton reported Oct. 29.
“North American markets were particularly strong in the quarter, while South American markets continued to be weak,” CEO Alexander Cutler said.
Eaton boosted its North American Class 8 truck-market production forecast to 295,000 this year, up from its previous 290,000 estimate.
Overall net income rose to $602 million, or $1.26 per share, from $510 million, or $1.07, a year ago. Revenue rose 2% to $5.73 billion.
Alison Transmission’s third-quarter profit rose to $68.8 million from $44.5 million a year ago, driven by a 21% gain in the North American on-highway market.
Per-share income improved to 38 cents from 24 cents, and revenue rose 18.6% to $553.3 million, the Indianapolis-based automatic transmission manufacturer reported.
Its North American net sales gain, which improved 5% sequentially from the second quarter, was principally driven by the Rugged Duty series, Alison said.
Component maker Dana Holding Corp. reported net earnings of $90 million, up from $68 million a year ago. Adjusted earnings per share were 57 cents, up from 47 cents, reflecting a lower share count from an ongoing share-repurchase program.
Revenue slipped to $1.64 billion, Maumee, Ohio-based Dana reported, citing weakness in South American currencies, which reduced sales by $35 million.
Commercial-vehicle driveline technology sales rose to $487 million from $465 million a year ago, and segment earnings before interest, taxes, interest, depreciation and amortization was $47 million, or 9.7% of sales, down from $52 million a year ago.
Dana said full-year earnings will be $1.93 to $1.96 per share.