Dana Inc. and American Axle & Manufacturing Holdings Inc., two of the world’s largest axle suppliers, reported on Friday multiple gains in the second quarter as the industry continues the long haul of recovering from the COVID-19 pandemic.
Dana said its performance in the second quarter benefited from ongoing strong demand across its three business segments.
The company posted revenue of $2.21 billion, up nearly 105 percent from $1.08 billion in the same period last year.
The Maumee, Ohio-based axle and transmission producer swung to net income of $53 million in the quarter from a net loss of $173 million in the year-earlier period.
“We continue to actively manage through a challenging supply-chain environment, and our team has done an excellent job proactively responding to the regional impacts of COVID-19,” Dana CEO James Kamsickas said in a statement.
Dana’s adjusted earnings before interest, taxes, depreciation and amortization stood at $233 million, compared with a loss of $5 million in the second quarter of 2020.
The company is maintaining its estimate of full-year sales landing between $8.5 billion and $9 billion, but CFO Jonathan Collins said he anticipates sales landing at the higher end because of the level of market demand exhibited in the first half of the year.
Notably, Dana’s sales in the light-vehicle segment got a boost, rising 164 percent from $337 million in 2020’s second quarter to $890 million in the second quarter of 2021.
Dana ranks No. 33 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $7.11 billion in 2020.
American Axle’s second-quarter net income was $16 million, up considerably from a net loss of $213 million in the year-earlier period.
The Detroit-based drivetrain supplier said revenue improved 146 percent to $1.28 billion in the quarter.
Adjusted earnings before interest expense, income taxes, depreciation and amortization stood at $222.6 million, up from a loss of $52 million in the year-earlier period.
The supplier’s driveline segment performed particularly well. It posted sales of $935 million in the period ending June 30, up almost 149 percent from nearly $376 million in the year-earlier period.
“AAM delivered strong operating performance in the second quarter of 2021 despite industry production volatility stemming from continued supply chain challenges,” American Axle CEO David Dauch said in a statement. “Our operating performance is allowing us to strengthen our balance sheet and invest in electrification technology development that is driving our future profitable growth.”
The company said it expects North American light-vehicle production to land in the range of 14.4 million to 14.6 million units in 2021.
American Axle ranks No. 47 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $4.71 billion in 2020.