Dana Corp. share prices plummeted last week by more than 35 percent after the Toledo, Ohio, supplier reported a third-quarter loss of $1.27 billion. The stock opened the week at $6.75 -- already down considerably from its 52-week high of $17.03. It closed the week at $4.35.
Dana's failure to benefit from the boom in Class 8 heavy-truck sales caught Wall Street's attention. Dana's commercial vehicle unit's gross margin during the quarter declined to 5.1 percent from 12.2 percent in 2004.
Dana CEO Mike Burns insisted that his new heavy-truck management team will focus on the problems. But Dana is struggling to improve production, an analyst said.
Analyst Christopher Ceraso of Credit Suisse wrote in a report, "We can't help but wonder if all of that work will put the company in even worse shape come 2007 if heavy truck builds fall off the map."
Total Class 8 sales were up 21 percent in the third quarter.
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