Despite the depressed market conditions, Dana Corp.’s Commercial Vehicle Systems Group (formerly the Heavy Truck Group) was profitable in first quarter,
due largely to a substantial streamlining of its operations, said Dana Chairman and CEO Joe Magliochetti.
Overall, the company posted a net loss of $27 million for the quarter, which included $28 million in non-recurring charges related to the sale of its Mr. Gasket aftermarket operations, facility closures and workforce reductions. First quarter 2001 revenues were $2.7 billion. For first quarter 2000 Dana reported $245 million net income on sales of $3.5 billion.
Sales of the Commercial Vehicle Systems unit totaled $319 million versus $514 a year ago. Operating profit was $5 million versus $35 million. Dana’s Automotive Systems Group, hurt by lower light-truck production, had sales of $972 million versus $1.2 billion in first quarter 2000. Operating profit was $39 million versus $85 million.
Although profits were down in all other major business segments, the only Dana group that showed an operating loss was its Automotive Aftermarket unit. which posted a negative $9 million on sales of $637 million. First quarter last year it showed a $35 million profit on $637 million in sales.
Magliochetti predicted that the original equipment markets will "continue to be erratic" in the second quarter as the OEMs work to balance production and inventories with industry demand. "We also do not see any signs of near-term recovery in the aftermarket," he said. "Consequently, it is imperative that we continue to focus on appropriately scaling all of our operations and better leveraging our assets."
due largely to a substantial streamlining of its operations, said Dana Chairman and CEO Joe Magliochetti.
Overall, the company posted a net loss of $27 million for the quarter, which included $28 million in non-recurring charges related to the sale of its Mr. Gasket aftermarket operations, facility closures and workforce reductions. First quarter 2001 revenues were $2.7 billion. For first quarter 2000 Dana reported $245 million net income on sales of $3.5 billion.
Sales of the Commercial Vehicle Systems unit totaled $319 million versus $514 a year ago. Operating profit was $5 million versus $35 million. Dana’s Automotive Systems Group, hurt by lower light-truck production, had sales of $972 million versus $1.2 billion in first quarter 2000. Operating profit was $39 million versus $85 million.
Although profits were down in all other major business segments, the only Dana group that showed an operating loss was its Automotive Aftermarket unit. which posted a negative $9 million on sales of $637 million. First quarter last year it showed a $35 million profit on $637 million in sales.
Magliochetti predicted that the original equipment markets will "continue to be erratic" in the second quarter as the OEMs work to balance production and inventories with industry demand. "We also do not see any signs of near-term recovery in the aftermarket," he said. "Consequently, it is imperative that we continue to focus on appropriately scaling all of our operations and better leveraging our assets."
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