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July 23, 2015

US: Dana posts Q2 net income down US$27m to US$59m

Dana has posted second quarter sales down US$101m to US$1.61bn, largely as a result of foreign currency translation and the divestiture of operations in Venezuela, which lowered sales by US$156m and US$20m respectively.

Dana has posted second quarter net income down US$27m to US$59m, while sales fell US$101m to US$1.61bn.

The latter was largely as a result of foreign currency translation and the divestiture of operations in Venezuela, which lowered sales by US$156m and US$20m respectively.

Organic growth of US$75m or 4%, driven principally by higher light-vehicle end-market demand and new business gains, tempered these impacts.

Net income for the quarter was US$59m, compared with US$86m, recorded in the same period in 2014.

Lower adjusted EBITDA of US$25m and higher restructuring expense of US$8m for cost-reduction actions taken in South America were the primary drivers of the change, with lower amortisation and interest expense providing a partial offset.

“In the second quarter, Dana achieved a 4% increase in organic growth as a result of some markets improving and new business coming on line,” said Dana president and CEO, Roger Wood.

“We also continued to win new business to support our backlog through 2017 and beyond. Though currency continued to be a challenge, especially in Europe and South America and we faced further weakness in South American market demand, we continued our focus on cost discipline, improving our margin over the first quarter.

“We remain committed to the performance of the business as we execute our plan and focus on the successful launch of new customer programmes through the remainder of the year.”

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