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.

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