Auto provider Dana Inc. stated web revenue rose strongly within the second quarter, offset considerably by foreign money headwinds, buyer demand volatility and provide chain disruptions.
The corporate stated in a name with buyers Friday that web revenue climbed $22 million to $30 million within the second quarter, a robust displaying however not fairly a full restoration to the $45 million posted in 2021. Dana primarily produces axles and transmissions.
Positive aspects had been offset by inefficiencies as a result of translation of foreign currency to U.S. {dollars}, which was a headwind to gross sales, revenue and margin, and in addition by buyer order volatility.
“Whereas we nonetheless skilled some lingering buyer pushed manufacturing inefficiencies, our revenue enchancment was pushed by decrease web manufacturing prices, robust operational execution and the timing of EV investments,” Dana CFO Timothy Kraus stated.
Dana’s income rose 6 p.c to $2.75 billion, a achieve attributed to increased market demand, cost-recovery actions and conversion of the corporate’s gross sales backlog. Free money movement was down 19.8 p.c to $134 million on account of increased capital spending for brand spanking new enterprise backlog.
Adjusted earnings earlier than curiosity, taxes, depreciation and amortization rose $81 million to $243 million.
Executives reaffirmed Dana’s dedication to evolving the electrified aspect of the corporate. Natural gross sales development from EV merchandise was $36 million, in contrast with $59 million final yr.
“Our electrification enterprise stays worthwhile on a contribution foundation, however we will solely present adverse revenue and margin once we think about continued funding we’re making to convey EV enterprise as much as scale,” Kraus stated.
Dana additionally introduced that it could be supplying “Inflexible Beam E-axles for a extremely anticipated gentle and medium obligation truck program,” although Dana CEO James Kamsickas stated he was unable to call the North American buyer.
“It’s one other nice instance of how the transformation to electrification is offering Dana the alternatives to produce 3 times the automobile content material versus conventional ICE drive strains on applications massive and small,” Kamsickas stated.
Dana shares had been up .58 p.c to $18.92 in afternoon buying and selling on Friday.
Dana Inc., based mostly close to Toledo, Ohio, ranks No. 29 on the Automotive Information checklist of the highest 100 world suppliers, with worldwide components gross sales to automakers of $3.05 billion in 2022.