Auto parts manufacturer Dana Holding Corp. on Thursday reported strong earnings of $86 million, or 40 cents a share, up 26 percent from $68 million, or 32 cents a share, in the second quarter of last year. Sales were virtually unchanged from last year at $1.95 billion.
Although Dana had a solid second quarter, the Maumee-based company did pull back somewhat on its full-year projections based on softening of demand in some markets.
"We delivered strong earnings and margin growth in the second quarter despite the impact of currency and soft commercial-vehicle volumes in Brazil," Roger Wood, president and chief executive officer, said in a statement.
"These strong results reflect our ongoing focus on lean operations, as well as our ability to react quickly to changing market conditions."
However, the company tempered expectations for the full year, saying it expected sales to be flat compared with 2011's. Dana reported sales of $7.6 billion last year.
Going into 2012, executives were projecting a 5 percent growth in sales. At the end of the first quarter, they had scaled that back to a 3 percent growth projection.
The company said Thursday that it now expects 2012 sales of $7.5 billion to $7.6 billion, and it reduced projections of earnings per share to a range of $1.94 to $2.01 from a range of $1.95 to $2.05.
Dana also cut its capital spending projection to a range of $210 million to $230 million from previous projections of a range of $225 million to $250 million.
The company's stock closed at $12.99, up $1.67, in trading Thursday on the New York Stock Exchange.
Dana also announced it would pay a cash dividend of 5 cents a share Aug. 31 to shareholders of record Aug. 10.
"Strong second-quarter results supported our position of financial strength and that, in turn, allows us to provide a greater return to our shareholders while continuing to invest in our growth and technology initiatives," Mr. Wood said.
-- Tyrel Linkhorn