American Axle & Manufacturing Holdings Inc. (AXL: Quote) Friday reported a surge in fourth-quarter profit, helped mostly by one-time tax gains. Revenues for the quarter increased over 21 percent from last year and topped Street estimates, but were offset by higher costs.
American Axle makes driveline and drivetrain systems, and chassis modules for the automotive industry.
The Detroit, Michigan-based company reported fourth-quarter net income of $320 million or $4.21 per share, compared with $31 million or $0.41 per share last year.
On average, 13 analysts polled by Thomson Reuters expected earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.
Results for the reporting quarter included a gain of $337.5 million related to the reversal of valuation allowance against net federal deferred tax assets.
Sale for the quarter totaled $736.7 million, compared with $605.6 million last year. Analysts expected revenues of $731.11 million.
Non-GM sales grew 16.6 percent from the prior year. The company's content-per-vehicle during the quarter was $1,514, compared with $1,498 a year ago.
Cost of sales for the quarter escalated to $653 million from $500 million a year ago, and selling and general overheads increased to $65 million from $57 million, essentially impacting margins.
American Axle is trading at $12.18, up 2.78%, on a volume of 2.2 million shares on the NYSE..
by RTT Staff Writer
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