American Axle’s quarterly net income dropped as costs increased

Article by Christian Andrei, on July 31, 2012

American Axle and Manufacturing Holdings Inc. said that its quarterly net income dropped as costs increased, according to its statement last Friday. The company had written down the closure of Michigan and New York plants. American Axle's net profit in the second quarter decreased to $4.7 million from the $49.2 million posted last year.

These results are a reflection of $36.5 million in restructuring costs from the closure of its Detroit and Cheektowaga plants, as well as a $28.1 million charge related to a union pension benefits claim. The revenue increased by 8% to $739.8 million from the prior year’s $686.2 million. However, gross margins declined to 11.6% of sales from 19.0% the previous year.

Its operating income plunged to $30.3 million from $71.7 million the past year. American Axle said that its results were influenced by the sluggish demand in North America for four-wheel-drive pickups and SUVs. The company said its new-business backlog rose to $1.2 billion for new models that will be presented over the next couple of years in North America, Brazil and Thailand. American Axle is a major supplier of axles and other driveline components. General Motors Co is its main customer, accounting for almost 75% of its sales.

If you liked the article, share on:


Login or Create new account to add a comment!


Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016
Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016
Wondering what the Fantasy Gift in Neiman Marcus’ annual Christmas Book this year could be? If you are generous enough to give others or yourself this special present, then behold...
by - October 24, 2016