TOLEDO, OHIO — Dana has revised its first-quarter 2005 earnings outlook to a range of 11 to 13 cents per share, from its previously announced range of 17 to 23 cents per share.
Dana Chairman and CEO Michael Burns said the reduction is primarily attributable to three factors — higher-than-expected material costs, a current component shortage from a principal supplier and lower-than-expected North American light-vehicle production rates on key platforms.
Burns added, “We are hopeful that we will see less pressure on material price increases during the balance of the year, but we can’t count on this. We are accelerating our cost-reduction efforts to pull forward savings to offset the potential impact of continued pressure on material costs. Regarding the component shortage that has reduced heavy-duty axle shipments, we are working closely with the supplier to resolve the situation and are confident that we will see a substantial improvement in the second quarter. However, given the uncertain outlook for the light-vehicle industry in general, as well as on commodity prices, we feel it is prudent to lower our 2005 full-year guidance to $1.30 to $1.45 per share, from our previous guidance of $1.40 to $1.62 per share.”
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