American Axle Earnings Up In Third Quarter

Autoparts Report, Nov 3, 2001

American Axle & Manufacturing Holdings Inc. reported better-than-expected earnings as its biggest customer, General Motors Corp., boosted light-truck production. The Detroit-based company said third-quarter net income rose 6 percent to $25.5 million, or 51 cents a diluted share, compared with $24.2 million, or 48 cents per diluted share a year-earlier.

The results slightly beat estimates by analysts, who expected American Axle to earn 41 cents to 50 cents per share, with an average forecast of 47 cents, according to 13 brokers surveyed by Thomson Financial/First Call.

"Our record third-quarter performance benefitted from our strong product portfolio and product mix. This contributed to our strong sales growth and our ability to post a solid year-over-year earnings increase in what continues to be a difficult auto environment," said Chief Executive Richard Dauch.

Sales rose 10 percent, to $743.5 million, compared with $675.5 million one year ago, the company said. A 6 percent increase in GM's light truck production helped offset a 15 percent slide from its non-GM customers, the company added. Research and development spending on new technologies rose 18 percent to $13.6 million from $11.5 million last year, it said.