Dana Reports Double-Digit Growth in 2Q Income, Sales
Dana Inc.’s net income and earnings jumped in the second quarter compared with a year earlier, attributed to improved market conditions and operational execution.
For the period ended June 30, net income rose 34% to $71 million, or 47 cents per share, compared with $53 million, or 36 cents, year-over-year, according to the Maumee, Ohio-based company.
Net income benefited from increased adjusted earnings before interest, taxes, depreciation and amortization of $39 million, partially offset by higher depreciation and amortization, acquisition-related costs, restructuring expenses and income taxes, according to Dana.
Sales rose 19% to $1.8 billion, compared with $1.5 billion in the 2016 period.
Commercial vehicle driveline sales increased to $357 million, compared with $349 million a year earlier. North America accounts for 58% of the sales in this segment, the company reported.
Meanwhile, there is continued strong demand for specialty and medium-duty trucks in North America and the Class 8 market is showing resilience; its share in North America remains stable, Dana said.
Dana also revised its Class 8 North American production outlook to between 220,000 and 240,000 trucks, compared with its earlier forecast of between 190,000 to 210,000 units. Actual production in 2016 was 228,000 heavy-duty trucks, it said.
Production of Classes 5-7 trucks was 233,000 in 2016, and Dana maintained its forecast for between 235,000 to 250,000 trucks in 2017.
Dana supplies steer axles, steering shafts, driveshaft assemblies, engine gaskets, hub systems and a tire-pressure management system that features self-inflating tires, it said.
Year-to-date income soared to $146 million, or 99 cents, compared with $98 million, or 66 cents, it said.
Sales increased to $3.5 billion, compared with $3 billion a year earlier.
“We have raised our financial guidance this year, consistent with our continued strong operating performance and improved customer demand,” Dana CEO James Kamsickas said in a statement — including a forecast increase in sales of 8% and 31% in earnings per share.
