Dana Inc. said Thursday that weaker demand in a key segment and the impact of the COVID-19 pandemic weighed on its first-quarter sales and profits.
The axles and transmission supplier said sales fell nearly 11 percent to $1.93 billion in the quarter.
A sluggish heavy-vehicle market in January and February and production halts across all mobility markets in March as a result of the global response to COVID-19 impacted sales, the company said.
Dana reported net income of $38 million, down 61 percent from the same period last year. This includes a goodwill impairment charge of $51 million resulting from the impact of the virus, the company said.
First-quarter adjusted earnings before interest, taxes, depreciation and amortization dropped 20 percent to $205 million. Dana said cost management helped mitigate the margin impact of the sales decline in the first quarter.