American Axle Q1 Profit More Than Quadruples, Results Beat View

(RTTNews) - American Axle & Manufacturing Holdings, Inc. (AXL) on Friday reported a profit for the first quarter that more than quadrupled from last year, reflecting a double-digit increase in sales and improved margins.

The prior-year quarter's results include the impact of debt refinancing and redemption costs. Both revenue and earnings per share for the latest quarter beat analysts' estimates.

American Axle makes driveline and drivetrain systems, as well as related components and chassis modules for trucks.

David Dauch, Chairman, President and Chief Executive Officer of American Axle said, "AAM's financial results in the first quarter of 2014 reflect strong sales growth that continues to outpace the industry. AAM's top priority in 2014 is to flawlessly launch our new business backlog which will drive higher profitability, improve free cash flow generation and enhance business diversification for our fast-growing company."

Detroit, Michigan-based American Axle's net income for the first quarter was $33.6 million or $0.44 per share, up from $7.3 million, or $0.10 per share in the year-ago period. The prior-year quarter's results reflect the impact of debt refinancing and redemption costs of $11.3 million or $0.13 per share.

On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $0.40 per share for the latest quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter rose 14 percent to $858.8 million from $755.6 million in the year-ago period. Analysts had a consensus revenue estimate of $853.05 million for the quarter.

The increase in sales was led by higher sales in support of Chrysler's all-new Jeep Cherokee and heavy-duty Ram full-size pickup trucks and its derivative. Non-GM sales for the quarter surged 53 percent from the year-ago quarter to $287.8 million.

In the latest quarter, American Axle's content-per-vehicle increased 10 percent from the same period last year to $1,655.

Gross margin for the quarter was 14.2 percent, compared to 13.8 percent in the year-ago period.

AXL closed Thursday's trading at $18.32. In Friday's pre-market, the stock is up $0.68 or 3.71 percent to $19.00.