In order to meet the rising demand for Spicer axles, Dana Holding Corporation (DAN - Free Report) announced that it will build a gear manufacturing operation in Rayong, Thailand. This new facility will support the company in achieving its goal of producing innovative products for growing markets like Thailand.
The facility will be operational from 2014 and has an annual production capacity of 600,000 gear sets. Improved gear manufacturing capabilities in the facility will also increase the company’s efficiency and help achieve the targeted growth rate.
The new facility will create 125 jobs. Currently, Dana has 650 employees at its three facilities located in Thailand.
Over the last 20 years, Dana has supported major automakers in Thailand with its products including axles and driveshafts. Major customers of Dana include Ford Motor Co. (F - Free Report) , Mazda, Nissan Motor Co. Ltd. (NSANY - Free Report) , Suzuki, and Tata Motors Limited (TTM - Free Report) .
Dana reported second-quarter 2013 earnings of 54 cents per share, beating the Zacks Consensus Estimate of 52 cents. However, earnings per share declined 3.6% from 56 cents per share in the comparable quarter of 2012.
Revenues inched down to $1.8 billion compared with $1.9 billion in the second quarter of 2012. It missed the Zacks Consensus Estimate of $1.84 billion. The decline in revenues was driven by scheduled Light Vehicle program roll-offs and an Off-Highway divestiture along with adverse impact of currency translation.
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. Dana currently carries a Zacks Rank #3 (Hold).