- Axle, driveshaft supplier benefits from light-truck demand
- Company will shorten its name to Dana Inc. effective Aug. 1
Dana Holding Corp. rose the most this year as the maker of parts for autos and commercial trucks posted second-quarter sales and profit that beat analysts’ estimates, helped by demand for sport utility vehicles and pickups.
The shares jumped 9.6 percent to $12.47 at 11:56 a.m. in New York after gaining as much as 12 percent, the most intraday since Dec. 22.
Sales totaled $1.55 billion, compared with the $1.51 billion average of projections compiled by Bloomberg, while adjusted earnings of 53 cents a share exceeded the estimate of 46 cents. Revenue in the unit that supplies axles and driveshafts to automakers rose 4.4 percent to $669 million on gains from light trucks, partially offsetting a 19 percent drop to $349 million in the business that makes similar parts for commercial vehicles, according to the company’s statement Thursday.
The results “likely handily surpassed relatively low investor expectations which are colored by a negative outlook for commercial truck volumes,” JPMorgan Chase & Co. analysts led by Ryan Brinkman said in a report. Investors also are probably reacting to Dana reiterating its full-year forecasts, the analysts said.
The company said in a separate statement that it will change its name to Dana Inc. effective Aug. 1 to reflect its “unified organization.”