Auto provider Dana Inc. stated internet revenue dropped by practically 85 % within the second quarter, reflecting decrease working earnings brought on by the unfavorable affect of overseas foreign money values, a spike in prices and provide chain challenges.
Dana reported internet revenue of $eight million — a drop of $45 million from a yr earlier. The corporate blamed the plunge totally on inflation, leading to larger working prices together with labor, vitality, transportation and uncooked supplies.
There have been some brilliant spots for the Maumee, Ohio-based axle and transmission producer. Gross sales elevated by about 17 % to $2.59 billion, and free money movement rose to $167 million in contrast with adverse money movement of $13 million in the identical interval a yr earlier.
Electrical car product gross sales, which CEO James Kamsickas said in April will change into a prime precedence, grew by an incremental $59 million.
Mild-vehicle product gross sales climbed 16 % from 2021 to about $1.03 billion. Business car gross sales progress was double that, rising 31 % to $507 million.
Adjusted earnings earlier than curiosity, taxes, depreciation and amortization fell about 30 % to $162 million.
Most of Dana’s headwinds are not unique, with the corporate citing commodity prices, inflation and overseas foreign money translation as main obstacles throughout the quarter and close to future.
Dana lowered its 2022 earnings forecast to a mean of 75 cents per share, down from the outlook it gave within the first quarter of a mean of $1.33 per share.
Dana shares had been buying and selling at $15.78 as of Friday afternoon, a lower of 5.6 % for the reason that market closed Tuesday.