Dana Dives After Missing Estimates, Lowering Full-Year Forecastsby
Parts supplier cites weakening demand in Asia, South America
Already down in 2015, stock plunges the most in almost 2 years
Dana Holding Corp. fell the most in almost two years after the vehicle-parts maker missed analyst estimates for third-quarter profit and lowered forecasts for the year on weakening demand in Asia and South America.
The shares dropped 7.9 percent to $15.46 at 9:57 a.m. New York time after plunging as much as 10 percent, the steepest intraday slide since Oct. 29, 2013. The stock had already tumbled 23 percent this year through Wednesday, almost 11 times the 2.1 percent decline for the Standard & Poor’s Midcap 400 Index.
The company’s commercial-vehicle customers have lost market share and weakening demand in South America and Asia led to the reduced targets, according to its statement Thursday. Dana now sees 2015 sales of about $6.05 billion, down from $6.2 billion to $6.3 billion, and adjusted earnings per share of about $1.85, down from $2 to $2.10. Analyst estimates compiled by Bloomberg averaged $2 a share on $6.24 billion in sales.
Dana, based in Maumee, Ohio, reported adjusted profit of 41 cents a share, missing the 52-cent average of 13 estimates.