Dana earnings: 2nd quarter profit falls

Car supplier Dana Inc. said net income fell nearly 85 percent in the second quarter, reflecting lower operating earnings caused by the unfavorable impact of foreign exchange values, an increase in costs and supply chain challenges.

Dana reported net income of $8 million — down $45 million from the prior year. The company blamed the dip primarily on inflation, which resulted in higher operating costs, including labor, energy, transportation and raw materials.

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

Sales of electric vehicles, which CEO James Kamsickas said in April will become a top priority, grew by an incremental $59 million.

Sales of light vehicles rose 16 percent from 2021 to about $1.03 billion. Growth in commercial vehicle sales was double, rising 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 currency translation as primary obstacles during the quarter and the 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, down 5.6 percent since the market closed Tuesday.

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