3rd quarter earnings send Dana shares tumbling 15%
10/30/2013Dana Holding Corp.’s stock price was hammered on Tuesday as the auto parts supplier missed analysts estimates for its third quarter earnings.
Shares of the company's stock slumped nearly 15 percent to their lowest level in four months, closing at $19.28, down $3.36 a share.
Dana reported a loss of $170 million in the quarter, compared to a profit of $48 million last year.
However, Dana’s heavy quarterly loss was mostly attributable to a $232 million adjustment related to a premium it paid on the redemption of preferred stock.
Excluding that one-time development and the preferred stock’s dividend requirements, Dana said it would have had a net profit of $68 million.
Third quarter sales were $1.67 billion, down about 3 percent from $1.72 billion last year.
The company said sales were primarily lower because of currency fluctuations and the end of some programs.
For the year, Dana sliced its earnings guidance on revenues and profits.
Going into 2013, the Maume company said it expected revenues of $7.1 billion and adjusted earnings per share of $1.85 to $1.95.
But weakened demand in construction and mining markets, negative economic pressures in Indian and South America, and lower than expected heavy commercial truck production in North America have hurt Dana.
The company said it now expects revenues will approximate $6.7 billion, and adjusted earnings per share will be close to $1.76.
“Despite challenging demand in a number of end markets we serve around the world, our team continued to deliver on the performance of the business. Our improved earnings and margin reflect our continued execution as we manage the business for future growth,” President and CEO Roger Wood said in a statement
Mr. Wood also said the company has returned $780 million to shareholders under Dana’s share repurchase program since last year.