Dana Corporation has reported notably higher quarterly earnings, helped by new business, cost reductions and stronger sales of heavy trucks in North America.
Reuters said Dana reported first-quarter net income of $US63 million, or 42 cents a share, compared with $41 million, or 28 cents a share, a year earlier.
Analysts on average had expected earnings of 40 cents a share, with estimates ranging from 35 cents to 42 cents, according to Reuters Research.
The report said the results included unusual gains of $2 million in the latest quarter and $10 million in the year-ago period on the sale of assets in its leasing and financing operation.
Profit from continuing operations, excluding the company’s proposed divestiture of the replacement parts business, rose to $50 million, or 33 cents a share, from $36 million, or 25 cents a share, the year before, Reuters said.
The news agency noted that Dana announced plans to sell the aftermarket unit in December and hopes to complete a deal by June 30 – the unit generates roughly a quarter of the company’s total revenue.
According to Reuters, first-quarter revenue rose to $2.31 billion from $1.98 billion a year earlier and the company confirmed its prior full-year earnings estimate of $1.90 a share.
Analysts on average were looking for $1.78 a share, with forecasts ranging from $1.55 to $2, according to Reuters Research.
The report noted that Dana has closed more than 30 plants over two years to shed excess capacity and focus on its core product lines.