American Axle logs third-quarter turnaround to $31.6 million net income

Article by Anita Panait, on November 3, 2013

American Axle & Manufacturing Holdings Inc. logged $31.6 million in net income in the third quarter of 2013, managing a turnaround from $8.2 million in losses in the same period in 2012. The company’s 2013 third-quarter report included a $5.3 million payout for co-founder Richard E. Dauch’s stock-based compensation and other benefits.

The report likewise included a charge of about $500,000 for the proposed settlement of a National Labor Relations Board proceeding in connection with the shutdown of its Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility in 2012.

The company’s third-quarter net income on a per-share basis was 41 cents – far from the First Call consensus estimate of 55 cents a share. The company logged a 17-percent hike in net sales in the third quarter to $820.8 million. Its non-General Motors sales surged 18.1 percent to $234.7 million.

American Axle recently has been subject of scrutiny, as issues with capacity led to delays in the delivery of axles to General Motors, which resulted to a slowdown in the output of the carmaker’s 2014 full-sized pickups. GM's Fort Wayne assembly plant site in Indiana has cut pickup output to 1,300 Chevrolet Silverados and GMC Sierras daily, down from 1,500 units.

A union official at the Fort Wayne plant remarked that the supply of axles from an American Axle’s Silao site in Mexico has failed to keep pace with the planned production rate. American Axle’s Director of Investor Relations, Chris Son, remarked that the company is supplying more axles than contracted by GM, but the restriction is due to an increase in demand of the axles used in GM's V8 trucks.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries