Dana profits rise 8% amid lower sales in 2nd quarter
Company spent $62M to repurchase shares
7/26/2013Dana Holding Corp. reported an 8 percent jump in profits for the second quarter, even though sales lagged.
The company said it made $85 million in the year's second quarter, or 44 cents per share. Dana had earnings of $79 million, or 40 cents per share, in the second quarter of 2012.
The Maumee company makes a variety of automotive parts for light vehicles, commercial vehicles, and construction equipment.
Dana's sales in the quarter dipped about 7 percent from last year to $1.8 billion. The company said that was primarily because of products that it no longer sells, as well as currency effects. Officials said lower costs and lower restructuring charges offset the drop in sales.
“I am pleased with Dana's second-quarter performance,” Chief Executive Officer Roger Wood said in a statement. “We continue to focus on disciplined cost and investment actions to generate positive cash flow and improve margin performance in each of our four business segments. Looking forward, political and economic uncertainties in a number of countries are putting pressure on volumes in some of our key markets. Yet I am confident in our ability to continue to remain flexible and execute on the levers within our control that are necessary to adjust our cost structure and respond quickly to changing market conditions.”
The company cut its full-year sales target by $100 million to $7 billion, which would be $200 million less than the company reported last year. Dana said it expects full-year earnings of about $1.90 per share.
Dana also said it had spent $62 million in the quarter toward its share repurchase program. The company recently announced plans to expand that to up to $1 billion over the next two years. So far, Dana has spent about $101 million to repurchase more than 6 million shares.
On Thursday, the company's stock rose $1.11 per share, about 5.4 percent, to close at $21.78.