Dana Earnings: Q2 Earnings Drop
Auto supplier Dana Inc. said net profit fell nearly 85% in the second quarter, reflecting lower operating profit caused by the unfavorable impact of foreign currency values, soaring costs and challenges of the supply chain.
Dana reported net income of $8 million, down $45 million from a year earlier. The company blamed the fall primarily on inflation, driving up operating costs, including labor, energy, transportation and raw materials.
There were positives for the Maumee, Ohio-based axle and transmission producer. Sales increased approximately 17% to $2.59 billion, and free cash flow reached $167 million, compared to negative cash flow of $13 million in the same period a year earlier ..
Sales of electric vehicle products, which CEO James Kamsickas said in April would become a top priority, rose another $59 million.
Light vehicle sales increased 16% from 2021 to around $1.03 billion. Commercial vehicle sales growth doubled, rising 31% to $507 million.
Adjusted earnings before interest, taxes, depreciation and amortization fell about 30% to $162 million.
Most of Dana’s headwinds are not unique, with the company citing raw material costs, inflation and foreign currency conversion as key headwinds in the quarter and into 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.
Shares of Dana were trading at $15.78 on Friday afternoon, down 5.6% since the market closed on Tuesday.