NEW YORK - Parts maker Dana Corp.'s financial performance and stock price could continue their upward climb, as better business conditions and a leaner organization boost earnings and margins, Barron's reported on Sunday.
The hostile $2.2 billion takeover attempt by smaller rival ArvinMeritor Inc., which Dana fought off, has galvanized management to speed up an overhaul, and Dana has signaled it is serious about becoming more streamlined, Barron's said.
The company is also benefiting from cost cutting, soaring productivity and a reduction in its debt load, the report said.
Dana also stands to benefit as industrywide orders for heavy trucks hit their their highest levels since the spring of 2002, Barron's reported.
But some analysts are cautious about the strength in truck and light-vehicle production and worry that a rise in interest rates might crimp demand for cars and trucks, Barron's said.
Shares closed up 23 cents to $21.63 Friday on the New York Stock Exchange, near a 52-week high of $23.09.