After failing to match earnings estimates, American Axle & Manufacturing Holdings Inc. experienced its biggest fall in nearly two months. American Axle, which makes axles and crankshafts, declined by 5.5% to close at $10.18 on the New York Stock Exchange. It decreased to $10.08 – its steepest intraday drop since Feb. 29.
The shares were up 8.9% this year before today. In a statement, the company said that its net income in the first quarter increased by 36% to $51.2 million, or 68 cents a share, from the previous year’s $37.7 million, or 50 cents. Profit was 61 cents a share, compared with 64 cents, which is what a survey of 11 analysts had arrived at.
They excluded several items, such as costs to shut down two plants. As the company was able to increase sales to companies other than General Motors Co. by 8.5% to $193.6 million, its revenue increased by 16% to $751.5 million. Bloomberg’s survey of seven analysts came to an average sales estimate of $751 million. GM's predecessor, General Motors Corp., had once owned American Axle. A regulatory filing in 2010 indicated that in 2009, American Axle got 78% of its sales from GM. Meanwhile, non-GM customers made up 27% of revenue in all of 2011.