(Reuters) - Auto parts supplier Dana Holding Corp (DAN.N) reported better-than-expected earnings on Thursday Thanks to strong North American vehicle production.
However, the Ohio-based company lowered its full-year forecast of sales to $7.5 billion from $7.6 billion and its adjusted earnings per share forecast to $1.94 from $2.01 due to the impact of foreign currency exchange and a softening in its business outside of North America.
In 2011, Dana’s revenue was $7.6 billion.
Dana’s business is led by drivetrain technologies, sealing systems, thermal-management products and off-highway transmissions.
A quarter of Dana’s revenue in 2011 was derived from Europe, where auto industry demand is at lows not seen in nearly two decades. And the company said that currency exchange rates negatively impacted profit, as did slower auto demand in Brazil.
Excluding one-time items, Dana’s earnings were 56 cents per share, beating the 50 cents per share forecast by analysts surveyed by Thomson Reuters I/B/E/S.
Dana’s net income was $86 million, or 53 cents per share, compared with $68 million, or 41 cents per share, a year before.
Sales for the quarter were $1.95 billion, near year-ago net sales of $1.93 billion.
Chief Executive Officer Roger J. Wood said in a press statement second-quarter profit can be linked to “our ongoing focus on lean operations,” as well as the company reacting quickly to dynamic market conditions.
Dana also lowered its guidance for earnings before interest, taxes, depreciation and amortization for 2012 to $820 million to $840 million from previous guidance of $845 million to $865 million.
Dana in 2011 derived 41 percent of its revenue from supplying light-vehicle production where its key customers are Ford Motor Co (F.N), Volkswagen AG (VOWG_p.DE), Nissan Motor Co (7201.T) and General Motors Co (GM.N).
Major customers in Dana’s heavy vehicle business, which accounted for 39 percent of last year’s revenue, included PACCAR Inc (PCAR.O), Daimler AG (DAIGn.DE), Volvo, a unit of Geely Automotive (0175.HK), and Navistar International (NAV.N).
Reporting By Bernie Woodall; Editing by Gerald E. McCormick