Dana sees 'significant impact' from UAW strikes to North American operations
27/10/2023 12:55
Oct 27 (Reuters) - Auto parts supplier Dana DAN.N said
on Friday its operations in North America were "significantly
impacted" by the ongoing United Auto Workers (UAW) union strikes
against automakers, while outlining the expected financial hit
from them.
Dana supplies axles, driveshafts and transmissions to the
Detroit Three automakers — General Motors GM.N , Ford Motor
F.N and Stellantis NV STLAM.MI .
"The UAW strike is significantly impacting a number of our
operations in North America while our heavy-vehicle business and
operations in the rest of the world are largely unaffected,"
said Dana's chief financial officer Timothy Kraus.
The company expects its full-year sales to be $10.7 billion
if UAW strikes through Oct. 31, or $10.2 billion with strikes
through Dec. 31.
Dana expects its full-year adjusted earnings per share to be
80 cents assuming the strike continues through Oct.31, or 30
cents with strike through Dec. 31.
Dana in July had forecast annual sales of $10.45 billion to
$10.95 billion, and annual adjusted EPS to be between $0.65 and
$1.05.
GM and Ford have pulled their full-year forecasts this week
to account for impacts from the UAW strikes.
Earlier this week, consultancy firm Anderson Economic Group
estimated the economic losses related to supplier wages and
earnings of about $2.78 billion through the fifth week of the
strike.
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(Reporting by Nathan Gomes in Bengaluru; Editing by Shilpi
Majumdar)
((Nathan.Gomes@thomsonreuters.com;))