Dana posted higher quarterly profits, raises full-year profit outlook

Article by Christian A., on July 28, 2011

Dana Holding Corp. recorded an increase in quarterly profits last Thursday. Based on higher production volumes, the auto parts maker raised its full-year profit outlook. In the second quarter of 2011, its net income climbed to $61 million compared with $1 million in the same period last year.

Sales increased to $1.93 billion, a 26% increase. Dana predicts that it will earn $1.60 to $1.70 a share before one-time items for the full year. It had previously forecast earnings of $1.55 to $1.65 a share.

Dana’s revenue for 2011 is forecasted to go up by over 25% compared to last year. This is a marked increase from its previous estimate for a more than 20% increase. For this year, analysts predicted a profit of $1.59 a share and revenue of $7.4 billion.

In a separate matter, Dana has announced that it will sell its equity in two joint ventures to Getrag KG for $136 million. This agreement will enable the company to improve liquidity and overall balance sheet.

The two joint ventures are both with Getrag subsidiaries. One is Getrag Corp. in the U.S., which makes rear-axle units. The second is Sweden-based Getrag All Wheel Drive, which makes all-wheel-drive systems. Dana said that this agreement is expected to be finalized this September.

In a statement, Dana CEO Roger J. Wood said that the sale of its interests in these businesses stands for a “divesture of nonstrategic assets.” Wood said further that it will continue to focus on its core strategic products in on-highway and off-highway driveline technologies such as proprietary all-wheel-drive products, and power technologies.

Topics: dana, profit

If you liked the article, share on:

Comments

Recommended

If this design study leads to the eventual and much-awaited BMW 8 Series grand tourer, then we wouldn’t complain. After all, it looks so promising. It isn’t the final version...
by - May 26, 2017
After successfully closing a deal with Volvo in 2010, China’s Geely is now securing full ownership of Lotus -- the maker of Exige, Evora, Elise and 3-Eleven. The Chinese car...
by - May 26, 2017
Volkswagen of America has a nice surprise for potential customers of the new VW Tiguan (2018 model year). The latest iteration of the Tiguan – set to arrive in the...
by - May 25, 2017
Toyota Camry is many things but exciting isn’t one of its frequent descriptions. That’s why throughout the years, Toyota has been stepping up its game for the said model in...
by - May 25, 2017
Volkswagen intends to leave the crowd in awe at the Worthersee Meeting (Wortherseetreffen) – the largest VW and Audi car show in Europe – with its new GTI Worthersee concept. ...
by - May 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries