American Axle & Manufacturing Holdings Inc. logged a strong gain in terms of net income in the third quarter of 2014 to $48.6 million, or 63 cents per share. The company posted a net income of $31.6 million, or 41 cents per share, in the same period in 2013. American Axle also logged a jump in operating income in the quarter from $67.5 million to $85.1 million.
It also saw 16-percent in revenues in $950.8 million. American Axle, which has been ramping up its non-General Motors business in past few years, saw its revenues from this side grow 27 percent to $296.8 million. American Axle chief executive David Dauch said that production of Jeep Cherokee and Ram components has been a key driver of growth for its non-GM business.
American Axle was once a part of GM until it was spun off 20 years ago. Dauch said in the statement that the company’s financial results for the quarter were highlighted by strong cash flow and solid profitability thanks to continued sales growth and improvements in operational stability and productivity.
He said that the carmaker’s improved free cash flow execution is helping to cut its balance sheet leverage. He added that it is also strengthening the company’s ability to invest in the continued development of new product, process and systems technologies.
In August, the Dauch said that the maker of powertrain components is planning to set up an advanced technology development center at its headquarters in Detroit, thereby employing 75-100 workers. The building of the center will cost the company between $15 million and $20 million and will be finished by mid-2015.