Dana Posts 38% Jump in Third-Quarter Net Income
Supplier Dana Inc. reported third-quarter net income surged and revenue climbed higher amid strength in three of its four business units.
Stronger sales and operational performance more than offset the margin headwind attributable to the effects of higher raw material prices and the associated material recovery reflected in sales, according to the Maumee, Ohio-based company.
For the period ended Sept. 30, Dana reported net income jumped 38% to $95 million, or 65 cents per diluted share, compared with net income of $69 million, or 46 cents, in the same period of 2017, primarily due to increased operating earnings associated with higher sales.
Revenue for the quarter reached $1.98 billion compared with $1.83 billion a year earlier.
Revenue in the commercial vehicle segment — its third largest — rose 9% to $406 million compared with $371 million in the same 2017 quarter. Dana’s commercial vehicle products include axles and driveshafts.
Revenue for light vehicles — Dana’s largest segment — also rose 9% to $879 million compared with $805 million a year earlier.
Its off-road segment saw revenue increase 11% to $425 million compared with $384 million in the 2017 period.
Dana’s power technologies unit saw revenue dip to $268 million compared with $271 million a year earlier.
The company highlighted its acquisition in the quarter of Swiss firm Oerlikon Drive Systems, which enhanced Dana’s electrification capabilities and off-highway portfolio. Oerlikon manufactures high-precision gears, planetary hub drives for wheeled and tracked vehicles, and products, control and software that support vehicle electrification across the mobility industry.
“As we finish strong this year, we are positioning our operations for continued profitable growth,” Chief Financial Officer Jonathan Collins said in a statement. “Through the third quarter, we have achieved 15% year-over-year sales and profit growth, despite rising material costs.”
Dana, founded in 1904, has more than 30,000 employees in 33 countries on six continents.
