Auto supplier Dana Inc. said its first-quarter sales grew because of a recovery in demand for light and heavy vehicles, but profit conversion was diminished by material cost increases and other supply chain constraints.
Dana reported net income of $71 million in the quarter, up 22 percent from the year-earlier period.
The axle and transmission producer, of Maumee, Ohio, joined several suppliers this month in reporting first-quarter results as the COVID-19 crisis lingers around the globe. More companies are set to report results over the next few weeks.
Dana posted revenue of $2.26 billion, an increase of 17 percent from the year-earlier period.
Adjusted earnings before interest, taxes, depreciation and amortization rose about 14 percent to $234 million. Dana reported adjusted free cash flow to of negative $26 million, although that was an improvement from negative $114 million a year earlier.
The company's sales in the light-vehicle segment rose 23 percent to $991 million. Its sales in commercial vehicles rose 5.7 percent to $352 million.
Dana said returning demand for full-frame trucks helped drive the sales growth. The global semiconductor shortage had minimal impact on light-vehicle segments in the first quarter, but supply constraints pose a risk to Dana for the remainder of the year, the company said.
Nonetheless, Dana raised its profitability forecast to $2.10 to $2.60 per share, up from a range of $1.90 to $2.40 per share.
Dana 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.