American Axle Profit Tops Estimates; Stock Up - Update

(RTTNews) - American Axle & Manufacturing Holdings Inc. (AXL) Friday reported a surge in profit in the second quarter, due mainly to higher sales and margins, while the prior-year quarter was hurt by facilities-closure charges. Quarterly earnings topped Wall Street estimates, while revenues fell short of expectations.

American Axle makes driveline and drivetrain systems, as well as related components and chassis modules for trucks. Strong recovery in the North American light truck market and the launch of new products by its customers helped results, said CEO David Dauch.

Investors cheered the results, sending American Axle shares up five percent in morning trade on the New York Stock Exchange.

American Axle, based in Detroit, Michigan, posted quarterly net income of $26 million or $0.34 per share, compared with $5 million or $0.06 per share last year.

Results for the prior-year quarter included restructuring and other charges of $0.49 per share.

On average, 11 analysts polled by Thomson Reuters expected earnings of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 8 percent to about $800 million from $740 million a year ago. Analysts estimated sales of $811.70 million for the quarter.

Non-GM sales for the quarter climbed about 12.9 percent from a year ago.

Gross margin for the quarter expanded to 15.3 percent from 11.6 percent in the prior year.

The company's stock is trading at $20.78, up $0.99 or 5.00%, on a volume of 1.9 million shares.