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.