Dana Holding, the Ohio based driveline technology company, has reported first quarter sales of US$1.688bn, up from US$1.676bn in the same period last year.
Net income for the quarter was US$34m compared with US$42m for the same period in 2013. Adjusted EBITDA for the quarter was US$165m compared with US$158m a year ago. Adverse currency exchange rates, particularly in South America, affected earnings, the company said.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Sales by its light vehicle driveline division were US$618m compared with US$619m last year. Dana said increased demand in North America was offset by unfavourable currency rates, mainly in South America [Venezuela], and weak demand in India and Thailand.
Commercial vehicle driveline sales were US$457m compared with US$458m in Q1 2013. Again, unfavourable currency offset growing demand in Europe, South America and North America.
Sales were also down at the off-highway driveline division, falling from US$343m a year ago to US$341m. The company said favourable currency movements due to strength of the euro were offset by lower demand, mostly for mining-related equipment.
Power technologies sales climbed from US$256m to US$272m due to strong demand in both Europe and North America.
The company warned “uncertainties surrounding the current environment in Venezuela present a potential challenge to our 2014 financial targets, which assume that automotive production [resumes there] in the second half of this year.”
If that doesn’t happen it could reduce full-year earnings by as much as US$40m.
“Although Venezuela currently poses challenge and uncertainty, elsewhere through the remainder of the year, we expect primarily stable end market demand across most regions, with continued strength in full frame light trucks and the opportunity for improving commercial vehicle demand in North America,” said president and CEO Roger Wood.
“While worldwide mining and construction equipment markets remain sluggish, we are well positioned to capitalise upon a demand upswing in these important segments. Our business units continue to work through the near-term currency and economic challenges presented by emerging markets such as South America, India, and Thailand, as well as capitalising upon stronger demand in other markets.”
