Dana Holding Corp. (DAN) and Cummins Inc. (CMI) plummeted after the automotive and truck industry suppliers lowered their annual forecasts. Goodyear Tire & Rubber Co. (GT) fell after quarterly revenue declined and missed analysts’ estimates.
Dana, a maker of axles for cars, trucks and construction equipment, dropped 15 percent to $19.28 at the close in New York, the biggest one-day drop since August 2011. Columbus, Indiana-based Cummins, which makes engines for trucks, slid 5.2 percent to $127.90, the largest one-day slide since April 30.
Dana, based in Maumee, Ohio, cut its forecast for adjusted earnings per share and sales because of slowness in the construction, heavy truck and mining industries, according to a statement. The company now expects profit of $1.76 a share on sales of $6.7 billion, compared with a July forecast of $1.90 a share and $7 billion in sales.
Cummins lowered its annual forecast for sales and adjusted earnings, according to a statement. The engine maker said it expects annual revenue to drop 3 percent and earnings before interest and taxes to be in the range of 12.5 percent to 13 percent of sales. Cummins said in July sales this year would be unchanged and profit to be 13 percent to 14 percent of sales.
Goodyear, based in Akron, Ohio, said separately in a statement its third-quarter revenue declined 5 percent to $5 billion, and below the average of five analysts’ estimates for revenue of $5.27 billion. The shares declined 5.9 percent to $20.76 at the close. The shares had fallen as much as 10 percent to $19.84, the biggest intraday decline in a year.
Goodyear, the largest North American tire maker, said third-quarter profit rose 48 percent to $173 million.
Cummins’ third-quarter net income rose 0.9 percent to $355 million, or $1.90 a share. That trailed the $2.11 average of 20 analysts’ estimates in a Bloomberg survey. Sales rose 3.6 percent to $4.27 billion, compared with $4.37 billion, the average of 15 estimates.
Dana third-quarter net income rose 21 percent to $68 million. Excluding what the company considers one-time items, profit was 47 cents a share. That trailed the 55-cent average of 10 analysts’ estimates in a Bloomberg survey. Sales dropped 2.7 percent to $1.67 billion, compared with the $1.78 billion average of nine estimates.
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