(Reuters) -Dana Inc beat Wall Street estimates for first-quarter profit and revenue as the auto parts maker benefited from strength in the light-truck and commercial vehicle market at a time when the industry is facing a global shortage of semiconductor chips.
Shares of the axle and driveshaft maker were up 2.2% at $28.30 before the bell.
The chip shortage has forced a number of automakers like General Motors Co and Ford Motor Co to curtail production.
However, the auto industry is enjoying strong demand during the COVID-19 pandemic as low interest rates, stimulus checks and a preference for private vehicles over public transport drive sales.
“Dana realized higher sales… as a result of continued strength in the light-truck market, as well as growth in both the commercial-vehicle and off-highway markets,” said Chief Executive Officer James Kamsickas.
Net income attributable to Dana rose 22.4% to $71 million, or 48 cents per share, in the quarter ended March 31.
Excluding items, the company earned 66 cents per share, above analysts’ estimates of 47 cents, according to Refinitiv data.
Net sales rose 17.5% to $2.26 billion, beating estimates of $2.02 billion.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shailesh Kuber)
