MAUMEE, Ohio—Dana Holding Corp.'s net income increased to $90 million for third quarter 2014, a $22 million increase compared to 2013 despite a decrease in sales.
The firm reported $1.64 billion in sales for the quarter, a $32 million decrease compared to 2013. Dana cited weaker currencies, primarily in South America, for decreasing sales by $35 million in the quarter.
“Dana's third quarter performance was largely in line with our expectations, though continued weakness in demand in a few of our end markets and unfavorable currency movements resulted in sales being slightly lower than last year,” President and CEO Roger Wood said in a statement.
Sales were favorably impacted by stronger production levels in the North American light and commercial vehicle markets, Dana said.
The firm said lower intangibles amortization, pension expense and restructuring chargers were primary factors for the increase in net income.
The firm said it increased its existing share repurchase program by $400 million on July 30, bringing the total to $1.4 billion since the program was announced in October 2012.
Dana said it utilized $68 million to repurchase common shares in the open market under its expanded share repurchase program and reported free cash flow of $61 million. As of June 30, cash and marketable securities totaled $1.27 billion. Since 2012, Dana said it has returned $1.01 billion in share repurchases and redemptions.
Dana's Light Vehicle Driveline Technologies business unit led the way in sales at $608 million for the quarter, a slight decrease from 2013's $629 million.
Its Commercial Vehicle Driveline Technologies business unit increased sales to $487 million, up from $465 compared to 2013. The firm said volume improvements in North America were offset by significantly lower demand in Brazil.
The Off-Highway Driveline Technologies business unit's sales dropped to $283 million, compared to $318 million in 2014. Dana cited weakness in global mining and agricultural equipment demand.
Its Power Technologies unit experienced a slight increase in sales to $259 million, up from $257 in 2013.