American Axle & Manufacturing Holdings Inc. posted a huge rise in net income in the second quarter of 2013 to $25.8 million, compared with $4.7 million in the same period in 2012. In terms of per stock profit, American Axle logged 34 cents a share in net income in the second quarter of 2013, exceeding analysts' expectations of 30 cents a share, as compiled by First Call.
The company logged an 8-percent jump in second-quarter 2013 net sales to $799.6 million, from $739.8 million in the same period in 2013. Sales to carmakers other than General Motors surged 13 percent to $223.8 million, from $198.2 million a year earlier. American Axle posted a $31.4 million hike in operating income in the second quarter of 2013.
The company attributed the huge rise in net income to restructuring costs of $36.5 million in 2012 from shutting down its site in Detroit and Cheektowaga, New York. The company’s strong results in the quarter greatly pleased investors, pushing its stock to the highest level in five years. The stock jumped 5.7 percent to close August 2, 2012 at $20.93 a share.
The company’s strong results could be traced to a rallying housing market as well as an aging fleet of existing trucks that are increasing demands for new pickups like Chrysler’s Ram Heavy Duty and GM’s Silverado and Sierra, which the American supplies. According to the Automotive News Data Center full-size pickup sales surged 23 percent in the first seven months of 2013. American Axle Chief Financial Officer Michael Simonte remarked during a conference call with analysts and investors that the company is working hard to meet the demand and “push as hard as they want to go."