Axle and transmission supplier Dana Inc. reported its 10th consecutive quarter of record sales Thursday but generated lower profits because of the expense of completing recent acquisitions.
First-quarter sales rose a modest $25 million from a year ago to $2.16 billion. Adjusted earnings before interest, taxes and amortization rose $9 million to $257 million during the quarter. Net income declined to $98 million, compared with $108 million in first quarter 2018.
The lower net profit reflected $32 million in "one-time costs related to recent acquisitions, including transaction expenses, financing charges, and elevated restructuring expenses to support cost synergies," the company said.
Dana said in July that it would spend $600 million to acquire the Drive Systems business of Swiss-based technology company Oerlikon Group. The deal gives Dana a wide range of gear products, as well as control and software technology to support the electrification of light vehicle, commercial vehicle and off-highway markets, especially in China and India.
Dana also competed the acquisition during the quarter of SME Group, an Italian company specializing in the design and manufacturing of electric motors and controllers.
Dana CEO James Kamsickas said the Maumee, Ohio, supplier remains focused on "top-line growth as we work to fully integrate our recent acquisitions, launch new products, and position the company for success as mobility markets transition to electric propulsion."
Sales for Dana's light-vehicle segment declined 4.6 percent to $906 million in the first quarter. The company's commercial vehicle sales increased 7.8 percent to $431 million, while off-highway business sales grew 12 percent to $552 million.
