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Dana Inc. reported giant positive factors in second-quarter internet revenue and income as robust buyer demand for its merchandise continued.
Web revenue for the interval ended June 30 rose to $53 million, or 36 cents per diluted share, in contrast with a lack of $176 million, or damaging $1.20, within the 2020 interval. Income jumped to $2.2 billion in contrast with $1 billion a 12 months earlier.
The Maumee, Ohio-based firm’s clients “proceed to see robust market demand that in lots of circumstances outpaced manufacturing as provide chain challenges proceed to hamper their operations,” Chairman and CEO James Kamsickas stated throughout a convention name with buyers.
“We’re taking the mandatory actions to capitalize on this distinctive market dynamic of low stock and excessive demand as a future alternative,” he stated, “for a stronger and longer period restoration because the enter challenges subside.”
Dana reported a backlog of recent enterprise of $500 million.
Yr-over-year second-quarter gross sales by phase:
• Gentle-vehicle: $890 million in contrast with $337 million, or 40.4% of complete income.
• Off-highway: $669 million in contrast with $398 million, 30.3% of the entire.
• Industrial car: $387 million in contrast with $203 million, 17.6% of the entire.
• Energy applied sciences: $259 million in contrast with $140 million, 11.7% of the entire.
Challenges dealing with Dana and related corporations, in accordance with CEO James Kamsickas:
• Larger uncooked materials prices.
• Semiconductor shortages affecting manufacturing for its clients.
• Logistics constraints.
• Larger transportation prices.
• Labor shortages associated to COVID-19 restrictions.
The corporate stated it was seeing “higher restoration” in its heavy-vehicle enterprise on commodities, and identified the industrial car phase has the longest provide chain.
He famous gentle industrial automobiles in Europe and India current important alternatives and lead the industrial car phase shift to completely electrified platforms.
Nonetheless, Chief Monetary Officer Jonathan Collins famous that large spending on electrification within the industrial car house is the largest constraint to margins.
“A lot of the exercise may be very a lot concentrated on this phase, and plenty of the investments that we’re making are to ship merchandise for this 12 months and lots of coming within the subsequent 12 months,” he stated.
Within the industrial car markets, Dana’s main enterprise is driveline techniques for medium- and heavy-duty vehicles and buses, together with the rising marketplace for hybrid and electrical automobiles.
Dana’s key regional markets are North America, Brazil and Asia Pacific.
The corporate forecasts North American Class 8 manufacturing for all of 2021 will enhance 46% over 2020, which was 38% decrease than document manufacturing in 2019 — using the enhancing financial outlook and cyclical demand.
Its North American medium-duty truck manufacturing outlook for 2021 is for an 11% enhance in manufacturing over the prior 12 months.
Dana is a pacesetter within the design and manufacture of propulsion and energy-management options for all mobility markets throughout the globe. The corporate’s standard and clean-energy options help practically each car producer with drive and movement techniques; electrodynamic applied sciences, together with software program and controls; and thermal, sealing, and digital options.
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https://www.ttnews.com/articles/dana-posts-solid-financials-second-quarter | Dana Posts Strong Financials in Second Quarter