Dana posts record third-quarter profit

AP News
Posted: Oct 27, 2011 9:19 AM
Dana posts record third-quarter profit

Auto parts maker Dana Holding Corp. on Thursday posted a record third-quarter profit as most of its business segments reported stronger revenue.

Dana, which makes axles, drive shafts, transmissions and other parts, also raised the low end of its adjusted earnings guidance for the full year.

The Maumee, Ohio, company made $110 million, or 51 cents per share, for the quarter ending Sept. 30 _ more than double the $46 million, or 22 cents per share, it made a year earlier. The earnings included a $60 million gain from selling interests in two joint ventures to German auto parts maker Getrag.

Revenue for the quarter rose 28 percent to $1.95 billion as demand for Dana's products increased as the global auto industry continued its recovery from the Great Recession.

Excluding charges and non-recurring items, the company would have made 45 cents per share. That beat Wall Street's expectations. Analysts polled by FactSet expected earnings of 42 cents per share on revenue of $1.91 billion.

Dana raised the low end of its adjusted earnings guidance for the full year. The company now expects earnings of $1.65 to $1.70. Earlier guidance was $1.60 to $1.70.

It also narrowed its guidance on full-year adjusted earnings before taxes, interest and amortization to $780 million. Previously Dana predicted a range of $765 million to $785 million.

The company said it benefited from an expanding portfolio of fuel-saving technologies. Automakers are snapping up fuel-saving innovations in order to meet higher government fuel economy standards.

Dana said sales in its light vehicle driveline business rose 14 percent, while power technologies sales were up 9 percent. Commercial vehicle sales rose 55 percent and off-highway sales were up 42 percent.

Shares of Dana rose 37 cents, or 2.7 percent, to $14.30 in premarket trading.