Dana sees profits plunge in Q2

Dana sees profits plunge in Q2


- Advertisment -spot_imgspot_imgspot_imgspot_img

Auto supplier Dana Inc. said net income dropped by nearly 85 percent in the second quarter, reflecting lower operating earnings caused by the unfavorable impact of foreign currency values, a spike in costs and supply chain challenges.

Dana reported net income of $8 million — a drop of $45 million from a year earlier. The company blamed the plunge primarily on inflation, resulting in higher operating costs including labor, energy, transportation and raw materials.

There were some bright spots for the Maumee, Ohio-based axle and transmission producer. Sales increased by about 17 percent to $2.59 billion, and free cash flow rose to $167 million compared with negative cash flow of $13 million in the same period a year earlier.

Electric vehicle product sales, which CEO James Kamsickas said in April will become a top priority, grew by an incremental $59 million.

Light-vehicle product sales climbed 16 percent from 2021 to about $1.03 billion. Commercial vehicle sales growth was double that, increasing 31 percent to $507 million.

Adjusted earnings before interest, taxes, depreciation and amortization fell about 30 percent to $162 million.

Most of Dana’s headwinds are not unique, with the company citing commodity costs, inflation and foreign currency translation as primary obstacles during the quarter and near future.

Dana lowered its 2022 earnings forecast to an average of 75 cents per share, down from the outlook it gave in the first quarter of an average of $1.33 per share.

Dana shares were trading at $15.78 as of Friday afternoon, a decrease of 5.6 percent since the market closed Tuesday.

Read More

Latest news

Destructive lionfish are invading Brazil

AnimalsInvasive lionfish, which have no native predators, have wreaked havoc in Florida and the Caribbean—and have now spread to...

Blind scientists adapted a centuries-old art to make data that can be touched and seen

Before photography, there was the lithophane.  It’s a thin slice of porcelain...

NASA’s oldest probe, Voyager 2, is turning 45 at the solar system’s edge

The year is 1977. Jimmy Carter is sworn in as President...
- Advertisement -spot_imgspot_imgspot_imgspot_img

Save $200 with these Labor Day Roomba deals on Amazon

Labor Day parties are fun. Cleaning up all the crumbs, dirt,...

Captive fish have feelings we’re just beginning to understand

The next time you go for a swim, try this: Close...

Must read

Ally All Ears Podcast | building customer loyalty during challenging times

Amy Sudik, senior director of marketing for Ally discuss...

Dodge’s Charger Daytona SRT Concept will make plenty of noise despite being an EV

Dodge's electric muscle car is on the way, and...

2023 Porsche 911 GT3 RS is a track-focused coupe packing 518 hp

The track-focused 2023 Porsche 911 GT3 RS debuts a...

Tesla denies report that legal chief who conducted internal probe has left

Tesla Inc. on Wednesday denied a report that it...
- Advertisement -spot_imgspot_imgspot_img

You might also likeRELATED
Recommended to you