DOW JONES NEWSWIRES
Dana Holding Corp. (DAN) swung to a second-quarter profit as the
auto-parts supplier reported better-than-expected revenue growth on
sales gains.
Overall market conditions for the maker of axles, driveshifts
and thermal-management products is expected to improve along with
higher automotive production trends in North America, which account
for about half of Dana's revenue.
Ratings agencies have touted auto-parts suppliers' improved
operating performance, with Dana earning three ratings upgrades
since December, including two from Standard & Poor's Ratings
Services.
Dana posted a profit of $10 million, compared with a
year-earlier loss of $3 million. On a per-share basis, after the
impact of preferred stock dividends, the company posted break-even
results in the latest quarter, compared with a prior-year loss of 8
cents. Net sales climbed 28% to $1.53 billion.
Analysts surveyed by Thomson Reuters expected a profit of 15
cents on revenue of $1.43 billion.
Gross margin widened to 11.1% from 5.6%.
Sales grew in four of the company's five businesses, with
structures, the lone exception, posting a 86% decline. Dana's
largest segment by revenue, light-vehicle driveline, had a 46%
increase.
Dana's shares closed Wednesday at $11.56 and were inactive
premarket.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com