Dana Inc. said Thursday that weaker demand and idle production in the first half of the quarter cut its second-quarter sales and profits as the coronavirus ravaged the automotive supply chain.
Two other major suppliers — Visteon Corp. and Aptiv — also reported sharply lower results for the second quarter. Several other suppliers are scheduled to report results in the coming days.
Dana said it posted a net loss of $174 million compared with a net loss of $68 million in the second quarter the year before. Adjusted for a one-time income tax expense of $56 million in the second quarter of 2020 and a pension charge of $258 million last year, net income swung to a loss of $118 million from a gain of $103 million the year before, Dana said.
The axles and transmission supplier said revenue for the second quarter fell 53 percent to $1.08 billion because of lowered demand for mobility in the first half of the quarter, stemming from the pandemic.
Shares in Dana fell 9.5 percent to $11.68 in midday trading on Wall Street.
The company said it had total liquidity of $1.7 billion as of Thursday, covering $709 million of available cash and marketable securities, plus $979 million in its revolving credit facility. That means the company has "ample liquidity," Dana said.
"Our timely cost saving actions and operational flexibility have served us well as we managed through this difficult quarter," said CFO Jonathan Collins. "We remain confident in our ability to capitalize on improving market conditions over the balance of the year."
The company said cost management and restarting production in May helped lessen the effects of the quarter's sales decline.
In a Thursday earnings call, Dana said it will supply its e-Powertrain and other parts to a "major European commercial truck manufacturer" for a new electric truck that will be used for "urban and regional product distribution." Production of the truck is slated to start next year, the company said.
Dana also said in the call that it acquired Rational Motion, a German engineering services company, in July.
The supplier said it will continue to refrain from issuing financial guidance since withdrawing it March 23 because of economic uncertainty stemming from the pandemic.
Dana, of Maumee, Ohio, ranks No. 30 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $8.62 billion in 2019.