Auto provider Dana Inc. stated internet earnings dropped by almost 85 p.c within the second quarter, reflecting decrease working earnings brought on by the unfavorable impression of international foreign money values, a spike in prices and provide chain challenges.
Dana reported internet earnings of $8 million — a drop of $45 million from a 12 months earlier. The corporate blamed the plunge totally on inflation, leading to greater working prices together with labor, power, transportation and uncooked supplies.
There have been some vibrant spots for the Maumee, Ohio-based axle and transmission producer. Gross sales elevated by about 17 p.c to $2.59 billion, and free money circulation rose to $167 million in contrast with unfavorable money circulation of $13 million in the identical interval a 12 months earlier.
Electrical automobile product gross sales, which CEO James Kamsickas stated in April will turn into a high precedence, grew by an incremental $59 million.
Gentle-vehicle product gross sales climbed 16 p.c from 2021 to about $1.03 billion. Business automobile gross sales development was double that, rising 31 p.c to $507 million.
Adjusted earnings earlier than curiosity, taxes, depreciation and amortization fell about 30 p.c to $162 million.
Most of Dana’s headwinds will not be distinctive, with the corporate citing commodity prices, inflation and international foreign money translation as main obstacles throughout the quarter and close to future.
Dana lowered its 2022 earnings forecast to a mean of 75 cents per share, down from the outlook it gave within the first quarter of a mean of $1.33 per share.
Dana shares have been buying and selling at $15.78 as of Friday afternoon, a lower of 5.6 p.c because the market closed Tuesday.