logo
Plus   Neg
Share
Email

American Axle Profit Soars On Tax Gains - Update

American Axle & Manufacturing Holdings Inc. (AXL) 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 RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
With sales by online retailers accounting for an increasing share of consumer spending, the U.S. Supreme Court has handed states a major victory in their efforts to boost revenue from sales tax. In a 5 to 4 ruling published Thursday, the Supreme Court sided with South Dakota in a case against online... AT&T Inc., which recently completed its acquisition of Time Warner Inc., has launched its new "WatchTV" streaming service with two unlimited data plans. In addition, WatchTV can be streamed through the WatchTV app. The two data plans - AT&T Unlimited &More and AT&T Unlimited &More Premium - are scheduled to launch next week. WatchTV features more than 30 live channels. Tesla Inc. has filed a lawsuit against a former employee, alleging that he stole the company's confidential data and transferred the information to third parties. The lawsuit accuses the former employee, Martin Tripp, of unlawfully hacking Tesla's confidential and trade secret information as well as transferring the information to third parties. The lawsuit was filed in a federal court in Nevada.
Follow RTT