Dana sees 'significant impact' from UAW strikes to North American operations (updated)

Dana

27/10/2023 15:09

(Adds details from earnings call, shares and details
throughout)
    By Nathan Gomes
       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.
    Shares of the company, which supplies axles, driveshafts and
transmissions to the Detroit Three automakers, namely General
Motors  GM.N , Ford Motor  F.N  and Stellantis NV  STLAM.MI ,
were up more than 3% in morning trade.
    Dana said the UAW strikes affected some of its largest light
truck programs, including Ford Super Duty, Ranger and Bronco as
well as Stellantis' Jeep Wrangler and Gladiator.
    "The longer the UAW strike continues, the greater financial
stress there will be across the Tier 2 through Tier 4 supply
base," Dana's chief executive James Kamsickas said in a
post-earnings call with analysts.
    The company earlier in the day said its heavy-vehicle
business and operations in the rest of the world were largely
unaffected.
    Dana 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.
    It expects 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.
    The company had forecast annual sales of $10.45 billion to
$10.95 billion, and annual adjusted EPS to be between $0.65 and
$1.05, in July.
    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.
    On an adjusted basis, Dana earned 30 cents per share in the
third quarter ended Sept. 30, compared with LSEG estimates of 13
cents per share.

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 (Reporting by Nathan Gomes in Bengaluru; Editing by Shilpi
Majumdar)
 ((Nathan.Gomes@thomsonreuters.com;))