Dana boosted first quarter 2017 sales to US$1.70bn, compared with $1.45bn in Q1 2016, a 17% increase. The increase was due to new business gains, higher demand in global light truck markets, and improved demand for global off highway components.
The supplier said “currency was a slight headwind of $6m due to the relative strength of the US dollar against the euro, British pound, and Mexican peso, partially offset by a stronger Brazilian real”. The impact of acquisitions added $80m in sales compared with the prior year.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Net income was $75m, compared with $45m in the same period last year thanks to an increased adjusted EBITDA of $57m, which was partially offset by higher transaction costs associated with acquisitions completed in the quarter, depreciation and amortisation expense, and income taxes. Earnings per share rose to $$0.51 from $0.30.
Adjusted EBITDA of $205m provided a 12.1% margin which was a 190 point improvement over Q1 2016. Higher sales and reduced costs at each business unit boosted profits.
But foreign currency rate changes reduced earnings by $10m from combined translation and transaction losses. Incremental profit of $60m was due to cost cuts, higher demand, and new products for customers in the Light Vehicle Driveline, Power Technologies, and Off-Highway Drive and Motion businesses. This was offset by weaker volumes in commercial vehicle markets. The Brevini and US Manufacturing Corporation (USM) acquisitions added $7m to the comparison.
Earnings per share were $0.63, compared with $0.34.
“Dana is off to a good start this year as we successfully launch new programmes across end markets and continue to convert our sales backlog. The results this quarter are further evidence of our ability to successfully operate and leverage our cost base during rapid volume and revenue expansion,” said James Kamsickas, Dana president and chief executive officer.
“In addition, the targeted and timely acquisitions of Brevini and the US Manufacturing Corporation facility directly align with Dana’s enterprise strategy as they both strengthen our technology portfolio and expand our market reach.”
