American Axle Q2 Profit Rises, But Misses View; Shares Down

(RTTNews) - American Axle & Manufacturing Holdings, Inc. (AAM) Friday said its second-quarter profit increased from a year ago, as sales jumped over 18 percent and margins improved. However, shares of the American Axle fell 8 percent after its earnings and revenues fell short of expectations.

Detroit, Michigan-based American Axle's second-quarter profit rose to $52.2 million or $0.67 per share from $25.8 million or $0.34 per share last year. On average, 10 analysts polled by Thomson Reuters expected earnings of $0.72 per share for the quarter. Analysts' estimates typically exclude special items.

American Axle, which makes axles and crankshafts for pickup trucks, said sales climbed 18.4 percent to $946.9 million from $799.6 million last year. Analysts had a consensus revenue estimate of $995.45 million for the quarter.

"AAM's financial results in the second quarter of 2014 reflect strong sales growth and profitability driven by the favorable impact of increased production volumes across many of our major product programs supporting the North American light vehicle segment," said CEO David Dauch said.

American Axle said sales growth reflects higher sales of supporting parts for Chrysler's Jeep Cherokee and heavy duty, full-size Ram pickup trucks.

Gross margins, the percentage of revenues left after deducting production costs, improved to 15.7 percent from 15.3 percent last year.

AXL is currently trading at $16.92, down $1.47 or 7.99%, on the NYSE.