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Earnings Drop as Revenue Stalls at American Axle
America Axle & Manufacturing Holdings Inc. reports its net income plunged 25% to $47 million in the fourth quarter of 2016.
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America Axle & Manufacturing Holdings Inc. reports its net income plunged 25% to $47 million in the fourth quarter of 2016.
Net sales dipped 1% to $947 million as demand for the company’s driveline systems slowed. In North America, AAM’s content per vehicle installation declined by $11 to $1,634. Operating income for the period shrank 20% to $70 million.
Full-year sales for the Detroit-based supplier advanced 1% to a record $3.9 billion, operating income rose 6% to $381 million and net income grew 2% to $241 million.
AAM projects core sales this year will grow to $4.1 billion-$4.2 billion. But the company expects to finalize the purchase of Metaldyne Performance Group Inc. by midyear in a $3.3 billion deal that will hike overall revenue to about $7 billion.
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