ERJ staff report (LMH)
Maumee, Ohio -- Dana Holding Corp., has reported a 12-percent decrease in sales in the third quarter, hitting $1.7 billion.
The company, which makes tyre pressure management systems and other automotive technologies, said softening North America demand across the company's significant commercial vehicle customers and continued weakness in South America impacted year-to-year sales comparisons by about $95 million.
The company recorded third-quarter net income of $56 million, down by 49 percent from the same period in 2011. Year-to-date net income was $212 million, up from $148 million in 2011.
Earnings (adjusted EBITDA) were $190 million in the quarter, or 11 percent of sales, compared with 10.2 percent for the same period in 2011.
"We are pleased to report solid financial results for the third quarter, despite choppy demand patterns and rapid softening in certain of our end markets, notably North America Class 8 commercial vehicle production," said Roger Wood, Dana president and CEO. "Dana has continued to respond quickly to changing market conditions with disciplined cost and investment actions, generating positive cash flow and improving adjusted EBITDA margin over this time last year.
Sales for the first nine months of the year were $5.6 billion, $34 million lower than 2011. Earnings (adjusted EBITDA) for the first three quarters was $627 million, or 11.1 percent of sales.
Dana said that in the third quarter it introduced a number of new technologies, including tyre pressure management technology for line-haul tractors, which the company said is â€œthe first internal axle system of its kind to automatically maintain optimum inflation for drive and steer axles, significantly increasing vehicle fuel efficiency and tyre life, while reducing maintenance.â€
Dana also revised its full year predictions. Full year sales are projected at $7.2 billion to $7.3 billion, compared with previous guidance of $7.5 billion to $7.6 billion, while earnings are expected to be $780 million to $800 million, compared with previous guidance of $820 million to $840 million.
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News release from Dana Holding