Dana Holdings Corp. (DAN) first-quarter loss narrowed slightly
as the auto-parts maker reported broad growth across nearlyall
businesssegments, led by the off-highway and commercial vehicle
units.
The company also raised its profit target for the year by 5
cents to between $1.55 to $1.65 a share and said it expects sales
to rise more than 20%, compared with the previous estimate of more
than 17% growth.
The maker of axles, driveshifts and thermal-management products
suffered along with the auto industry in 2009, but its sales
improved last year as light-vehicle demand rebounded.
Dana reported a loss of$30 million, or 26 cents a share,
compared with a prior-year loss of $31 million, or 28 cents a
share. Net sales grew 19% to $1.8 billion.
Analysts polled by Thomson Reuters expected a profit of 27 cents
on revenue of $1.69 billion.
Results in the latest quarter included a $31 million income tax
expense, compared with a prior-year benefit of $3 million.
Gross margin jumped to 11.9% from 9.3%.
The company's light-vehicle driveline segment, its largest by
revenue, reported a 23% increase in sales. The power technologies
unit's sales rose 17%, while off-highway and commercial-vehicle
revenue grew 45% and 44%, respectively.
Last month, Dana named Roger Wood, a veteran of turbocharger
maker BorgWarner Inc. (BWA), to the chief executive role, the
fourth person to serve in that position since the company exited
bankruptcy in 2008. Dana also said Chairman John Devine, who had
also served as interim CEO since January, would retire at the end
of June.
Shares closed Tuesday at $18.50 and were inactive premarket.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com