Dana Reports Drop in Earnings

Automotive systems manufacturer Dana Corp. reports that earnings fell by one-third for the third quarter, hurt by increased steel costs and a one-time, $20-million US charge related primarily to the sale of its aftermarket business. <br>
Earnings for the quarter ended Sept. 30 totalled $40 million, or 27 cents per share. Analysts surveyed by Thomson First Call predicted earnings of 36 cents per share. All figures in U.S. dollars.<br>
A year ago, Dana earned $61 million, or 41 cents per share, in the third quarter. <br>
Sales rose to $2.1 billion from $1.9 billion a year ago. <br>
Increased costs of steel and other raw materials hurt earnings, said Mike Burns, Dana’s chairman and chief executive. Higher steel expenditures alone totalled $22 million during the quarter. Dana makes products for automotive, commercial and off-highway vehicles. <br>
“Setting aside taxes, it was an otherwise disappointing quarter, largely because of the increasing costs of raw materials,” Burns said. <br>
The $20-million charge resulted primarily from the sale of Dana’s automotive aftermarket businesses. <br>
The Toledo, Ohio-based company employs 45,000 people, with operations in 30 countries. Sales from continuing operations totalled $7.9 billion in 2003. <br>