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.
Reporting by Nathan Gomes in Bengaluru; Editing by Shilpi Majumdar
