American Axle’s 3Q profit of $38.8 million exceeds estimates

Article by Christian Andrei, on October 30, 2010

In the third quarter, American Axle & Manufacturing Holdings Inc. posted a profit that was higher than what was expected. Its sales forecast for the fourth quarter fell short of estimates from Wall Street. American Axle posted a net profit of $38.8 million, or 52 cents per share, compared with a year-ago profit of $19.6 million, or 35 cents a share.

Analysts expected earnings of 39 cents per share. This week, third-quarter results from auto suppliers this week displayed big gains in revenue and profit.

Those that posted net profit gains include American Axle (up 98%); BorgWarner (up 520%); Lear Corp. (up 287%); Johnson Controls Inc. (up 33%); and Federal-Mogul Corp. (up 430%).

These companies have reduced costs ever since the slump in 2009, which was when US auto sales were at their lowest in 27 years.

Their gains have outdone the growth in auto sales, which many automakers and analysts including J.D. Power and Associates predict to end this year near 11.5 million vehicles, compared to 10.4 million vehicles in 2009.

Meanwhile, American Axle predicted full-year 2010 sales growth at 45% to 50%, higher than the forecast of 40% to 45% three months ago.

Nonetheless, this forecast implied that fourth-quarter revenue would fall between $507 million and $583 million, according to J.P. Morgan analyst Himanshu Patel. [via autonews - sub. required]

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly a year after the Subaru XV Concept was unveiled at the 2016 Geneva Motor Show in Switzerland, this SUV study is making its North American debut at the 2017...
by - January 23, 2017
It looks like Porsche will be very busy throughout 2017 as it prepares for the eventual launch of its two new models this year – the 2017 Porsche 911 GT3...
by - January 23, 2017
Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 2017
When a car has been in the market for nearly six years, it loses some of its luster and its customers tend to go for the all-new model with a...
by - January 22, 2017
Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 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