Dana Holding Corporation
) has announced the opening of two new distribution centers in
China and Mexico. The centers are located in Toluca, Mexico, and
Wuxi, Jiangsu Province, China. The new additions will increase the
number of aftermarket distribution centers to 17 globally. The
centers will be serving as distribution hubs in the regions and
will be supplying parts for the company's light vehicle, commercial
vehicle, and off-highway customers.
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These distribution centers will enhance the product availability,
strengthen the supply chain, and support the additional number of
aftermarket customers. In addition, the new centers will help the
company to improve its global distribution system, and address the
rising demand of its products. Management believes that the
expansion of the service network will deliver the essential
logistical support along with ensuring the quality of the
aftermarket products more efficiently.
The facility in Mexico, which was inaugurated last month, provides
on-highway aftermarket products and the company has plans to
incorporate off-highway products in the future as well. The
distribution centre in China, which will be operating from this
month, will deliver off-highway products initially. The company
also expects to incorporate light-vehicle components in the next
Dana, in the second quarter of 2012, registered a 24% increase in
its profit to $120 million or 56 cents per share from $97 million
or 45 cents a year ago. The earnings per share surpassed the Zacks
Consensus Estimate by 5 cents. The higher profit was attributable
to the company's emphasis on cost control and efficiency from
Total revenues went up 1% year over year to $1.95 billion in the
quarter, owing to the regional diversity which places the company
in an advantageous position. However, revenues were adversely
affected by currency headwinds and lower commercial vehicle
production in South America.
Maumee, Ohio based Dana is one of the world's leading suppliers of
driveline, sealing, and thermal technologies, which improves the
efficiency and performance of passenger, commercial and highway
vehicles. The company's major competitors include
Magna International Inc.
American Axle & Manufacturing Holdings Inc.
). Currently, Dana retains a Zacks #3 Rank, which translates into a
short-term (1 to 3 months) Hold rating.