Dana 1Q Loss Narrows On Broad Revenue Growth; Lifts Fiscal Year View

Dana Holdings Corp. (DAN) first-quarter loss narrowed slightly as the auto-parts maker reported broad growth across nearlyall businesssegments, led by the off-highway and commercial vehicle units.

The company also raised its profit target for the year by 5 cents to between $1.55 to $1.65 a share and said it expects sales to rise more than 20%, compared with the previous estimate of more than 17% growth.

The maker of axles, driveshifts and thermal-management products suffered along with the auto industry in 2009, but its sales improved last year as light-vehicle demand rebounded.

Dana reported a loss of$30 million, or 26 cents a share, compared with a prior-year loss of $31 million, or 28 cents a share. Net sales grew 19% to $1.8 billion.

Analysts polled by Thomson Reuters expected a profit of 27 cents on revenue of $1.69 billion.

Results in the latest quarter included a $31 million income tax expense, compared with a prior-year benefit of $3 million.

Gross margin jumped to 11.9% from 9.3%.

The company's light-vehicle driveline segment, its largest by revenue, reported a 23% increase in sales. The power technologies unit's sales rose 17%, while off-highway and commercial-vehicle revenue grew 45% and 44%, respectively.

Last month, Dana named Roger Wood, a veteran of turbocharger maker BorgWarner Inc. (BWA), to the chief executive role, the fourth person to serve in that position since the company exited bankruptcy in 2008. Dana also said Chairman John Devine, who had also served as interim CEO since January, would retire at the end of June.

Shares closed Tuesday at $18.50 and were inactive premarket.

   -By John Kell, Dow Jones Newswires; 212-416-2480; [e-mail]