Dana Holding Corp. today announced results for the second quarter of 2015.
Sales for the quarter were $1.609 billion, $101 million lower compared with the same period in 2014. Foreign currency translation and the divestiture of operations in Venezuela lowered sales by $156 million and $20 million, respectively. Organic growth of $75 million, or 4 percent, driven principally by higher light-vehicle end-market demand and new business gains tempered these impacts, Dana reported.
Net income for the quarter was $59 million, compared with $86 million recorded in the same period in 2014. Lower adjusted EBITDA of $25 million and higher restructuring expense of $8 million for cost-reduction actions taken in South America were the primary drivers of the change, with lower amortization and interest expense providing a partial offset. Diluted adjusted earnings per share (EPS) were 48 cents, compared with 58 cents in the second quarter of 2014, reflecting reduced earnings, partially offset by a lower share count from the continued execution of the company’s share repurchase program.
“In the second quarter, Dana achieved a 4 percent increase in organic growth as a result of some markets improving and new business coming on line. We also continued to win new business to support our backlog through 2017 and beyond,” said President and CEO Roger Wood. “Though currency continued to be a challenge, especially in Europe and South America, and we faced further weakness in [the] South American market demand, we continued our focus on cost discipline, improving our margin over the first quarter. We remain committed to the performance of the business as we execute our plan and focus on the successful launch of new customer programs through the remainder of the year.”
Share Repurchase Program
During the second quarter of 2015, Dana repurchased an additional $63 million in shares of common stock. Since the inception of Dana’s $1.4 billion share repurchase program, the company has repurchased or redeemed the equivalent of 57 million common shares, returning $1.215 billion to shareholders. At the end of the second quarter, $185 million of authorization remained under the program.
