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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.
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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.
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