Auto parts supplier Dana 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.
Dana supplies axles, driveshafts and transmissions to the Detroit Three automakers – General Motors, Ford Motor and Stellantis NV.
“The UAW strike is significantly impacting a number of our operations in North America while our heavy-vehicle business and operations in the rest of the world are largely unaffected,” said Dana’s chief financial officer Timothy Kraus.
The company expects its full-year sales to be USD 10.7 billion if UAW strikes through Oct. 31, or USD 10.2 billion with strikes through Dec. 31.
Dana expects its 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.
Dana in July had forecast annual sales of USD 10.45 billion to USD 10.95 billion, and annual adjusted EPS to be between USD 0.65 and USD 1.05.
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 USD 2.78 billion through the fifth week of the strike.
