Supplier Dana reported a healthy rise in net income to US$108m for the first quarter of 2018, versus $75m a year previously, citing increased operating earnings from higher sales.
Earnings per share were $0.73 versus $0.51.
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Adjusted EBITDA was $248m, up $43m due, Dana said, to "higher end-market demand and conversion of the sales backlog, as well as earnings from acquisitions completed in the first quarter of 2017".
"The strong first-quarter earnings performance was achieved while completing the production launch for one of the company's largest programmes, the new Jeep Wrangler."
"In the first quarter, Dana's sales growth outperformed the market with 26% higher revenue, including 17% organic growth," said president and CEO James Kamsickas.
"First-quarter sales were more than $2bn resulting in the strongest sales quarter we have realised in nearly a decade. Our intense focus on customer satisfaction and bringing our backlog to market is helping to drive outstanding results and further position Dana for future growth."
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By GlobalDataThe supplier said improved demand for key light truck programmes, off-highway equipment, and commercial vehicles, combined with sales from the new business backlog were "driving an expected 10% growth in sales for 2018".
Higher sales from the backlog were expected to add approximately $300m, and improved demand to add $200m. Foreign currency effects will add an additional $150m to the sales comparison.
Adjusted EBITDA in 2018 is expected to improve by approximately $145m from 2017.
2018 targets
- Sales of $7.75 to $8.05bn
- Adjusted EBITDA of $950 to $1,010m, a margin of 12.4%
- EPS of $2.75 to $3.05
