Dana Inc. Reports Record Sales, But Posts Lower Net Income In First Quarter
Releasing its earnings before the market open on May 2, Dana Inc. (NYSE: DAN) reported a drop in net income, which was $98 million in the first quarter of 2019, down from $108 million compared with the same three months of 2018.
The company cited one-time costs related to its recent acquisitions, including transaction expenses and financing charges and elevated restructuring expenses, for its revenue drop.
The company reported record first quarter sales of $2.2 billion, an increase of $25 million compared with the same quarter in 2018, a 5 percent increase. Dana also reported this is the 10th consecutive quarter of year-over-year sales growth.
"Our strong first quarter supports delivering our full-year guidance and keeps us firmly on the path to achieve our long-term targets," said Jonathan Collins, executive vice president and chief financial officer of Dana. "Our outlook for 2019 and 2020 continues to be positive due to our robust sales backlog, stable end markets and accretive acquisitions."
The company reported that its diluted adjusted earnings per share were $0.78 in the first quarter of 2019, compared with $0.75 in the same period last year.
Dana, headquartered in Maumee, Ohio, is a supplier of axles, drive shafts, sealing products, thermal-management technologies and universal joints for the commercial truck market.
The company's commercial vehicle division reported first quarter 2019 sales of $431 million, up from $400 million a year ago. Dana reported sales of $906 million in its light vehicle division for the first quarter, which is down from $950 million from the first quarter of 2018.
Dana's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $257 million in the first quarter, an increase of $9 million compared with the first three months of 2018.
Dana reported that it had completed the purchase of SME Group, headquartered in Arzignano, Italy. The global SME Group designs, engineers and manufactures low-voltage AC induction and synchronous reluctance motors, inverters and controls for a wide range of off-highway electric vehicle applications, including material handling, agriculture, construction and automated-guided vehicles.
Dana also completed the acquisition of the Drive Systems segment of the Oerlikon Group, including the Graziano and Fairfield brands. This acquisition will expand the company's capabilities in vehicle electrification.
Dana has nearly 100 engineering, manufacturing and distribution facilities in 32 countries.
Image sourced from Pixabay
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