American Axle’s third-quarter earnings fell 36 percent

Article by Christian A., on October 31, 2011

Third-quarter earnings of American Axle & Manufacturing Holdings Inc. fell by 36%, mostly due to costs linked to plant closures. It recorded a net income of $24.8 million in the third quarter, compared to $38.8 million the previous year. In the latest period, the company incurred $11.9 million in charges over the planned closure of two U.S. manufacturing facilities.

The company had previously said that it will shut down plants in Michigan and New York after it failed to enter competitive labor contracts with the UAW. The special charges in this quarter included a $1.6 million asset impairment posted by its e-AAM joint venture associated with a long-term supply contract with Saab Automobile AB.

In the latest period, its revenue rose by 5% to $647.6 million. American Axle, which manufactures driveline systems, chassis systems and forged components for trucks, buses and cars, has experienced a rebound after having faced a string of financial losses that were resolved in 2009.

The demand in the U.S. for light vehicles grew 10% through September. General Motors Co., a major customer and former parent, has recorded a 16% increase in sales this year for its light vehicles in the U.S.

American Axle has also been diversifying and has gone into businesses outside of the light truck market. The company said that about two-thirds of its new business backlog that will launch from 2012 through 2014 is for passenger car, crossover vehicle and commercial vehicle programs.

In a statement, CEO Richard E. Dauch said that after maintaining a strong profit performance in the last two years, it is now able to accelerate the investment in advanced product, process and systems technology required to expand and diversify its customer base, product portfolio and served markets. [source: BusinessWeek]

If you liked the article, share on:

Topics: american axle

Comments

Recommended

We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
The other day, it was confirmed that Volvo will finally bring the XC40 to US soil, where it will first make an appearance at the 2017 Los Angeles Auto Show....
by - November 23, 2017
There is no question that the new BMW M5 (F90) high performance sports sedan is more powerful, faster and more enticing than the previous model. But for interested customers in...
by - November 23, 2017
Following the Tesla Roadster’s electrifying revelation on Thursday, Musk’s highly ambitious goals have skyrocketed when he tweeted about his future plans for the new sports car. Well, kind of. The...
by - November 23, 2017
Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 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