Mexican Media Brands
American Axle Profit Plunges 90%
American Axle & Manufacturing Holdings Inc.'s net earnings plummeted to $5 million in the second quarter of 2012 from $49 million in the same period last year.
#economics
Share
American Axle & Manufacturing Holdings Inc.'s net earnings plummeted to $5 million in the second quarter of 2012 from $49 million in the same period last year. Revenue rose 8% to $740 million.
The company says the profit slide was caused by $37 million in restructuring charges for closing factories in Detroit and Cheektowaga, N.Y. Those expenses include $28 million contingency for union claims for pension and retiree benefits.
Earnings before interest, taxes, depreciation, amortization and one-time charges were $103 million, or 14% of sales, in April-June compared with $108 million, or 15.7%, a year earlier.
Content per vehicle in North America was $1,440 compared to $1,500 in the second quarter of 2011. AAM attributes some of the decline to weaker demand for the SUVs and light trucks made by its customers.
The company says it has a new-business backlog of $1.2 billion for programs launching through 2014 75% of which is for customers other than former parent General Motors Co.
AAM predicts full-year revenue will increase 12% from 2011 to about $2.9 billion compared to its previous forecast sales of $2.8 billion-$2.9 billion.
RELATED CONTENT
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
Fuel Economy Gains in July
What you’re looking at here is a sales-weighted fuel economy chart (the numbers in the white boxes represent miles per gallon) that was put together by two diligent researchers, Michael Sivak and Brandon Schoettle, of the University of Michigan Transportation Research Institute.