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Dana Inc. reported lower first-quarter net profit and a slight increase in revenue.
It also expects North American Class 8 volume to increase in the second half.
Net income for the period ended March 31 fell to $20 million, or 12 cents per diluted share, from $68 million, 48 cents, a year earlier.
“External factors continue to put pressure on our margins and free cash flow as rapid inflation in energy, services and labor drives up costs even further,” the CFO said. Timothy Kraus in the earnings release. “While we see some improvement at the end of this year, we expect these factors to remain a headwind for earnings. We have adjusted our financial targets to better reflect conditions in the mobility markets and continue to work hard. aggressively to mitigate the impact of these challenges and position ourselves to capitalize on strong end-market demand and low vehicle inventories once the global environment stabilizes.
Revenue for the quarter increased slightly to $2.4 billion from $2.2 billion for the same period of 2021, driven by strong customer demand in its heavy-duty markets and material cost recovery raw materials and inflation, according to the Maumee, Ohio-based company.
Its commercial vehicle segment posted revenue of $463 million in the quarter, up from $349 million a year earlier. In the commercial vehicle markets, Dana’s core business is driveline systems for medium and heavy duty trucks and buses, including the emerging market for hybrid and electric vehicles.
The light vehicle segment recorded revenue of $985 million, compared to $991 million for the 2021 period.
Its off-road business had sales of $744 million, up from $635 million a year earlier.
Its energy technology business reported flat sales of $288 million.
“Dana delivered continued sales growth in the first quarter despite record inflation, rising raw material costs and continued global supply chain disruptions,” said Dana Chairman and Chief Executive Officer James Kamsickas. . “As the mobility industry as a whole grapples with spiraling costs and geopolitical unrest that are having a significant impact on the energy and transportation sectors, Dana continues to actively manage these pressures on costs and navigate through erratic, short-term shifts in customer demand.”
He said Dana continues to launch new products and fulfill its $400 million backlog of new business sales coming online this year.
As for electrification, the company said it has significant EV products in “launch readiness.”
Its off-road electrification is progressing in key markets, he reported.
In its light vehicle segment, Dana said it has a complete vertically integrated electronic propulsion system with three times the content per vehicle compared to a traditional internal combustion engine program.
Looking ahead, Dana’s 2022 goals include revenue of $9.8 billion to $10.3 billion. That amount rose from $9.6 billion to $10.1 billion, according to the company’s forecast in its fourth quarter report.
Dana, founded in 1904, is a leader in the design and manufacture of propulsion and energy management solutions for all mobility markets around the world. The company’s conventional and clean energy solutions support nearly every automaker with drive and motion systems; electrodynamic technologies, including software and controls; and thermal, sealing and digital solutions. It has 40,000 associates in 32 countries on six continents.
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