Friday, auto parts maker American Axle & Manufacturing Holdings Inc. (AXL) reported a profit for the third quarter, as a result of pension and post retirement benefit curtailment gains and lower cost of goods sold. Excluding the one time item, the company would have reported a loss. The stock is currently down more than 7% on the NYSE.
The Detroit, Michigan-based company's third-quarter net income attributable to the company was $19.6 million or $0.35 per share compared with net loss of $440.9 million or $8.54 per share for the prior year quarter. The third quarter profit represents first profitable quarter since the third quarter of 2007.
The company recorded a pension and post retirement benefit curtailment gains of $42.3 million or $0.76 per share for the quarter which more than offset the special charges and restructuring costs of $13.0 million or $0.23 per share.
For the prior year period, the company recorded $398 million or $7.71 per share of special charges, asset impairments and non-recurring operating costs, primarily related to hourly and salaried attrition programs and, benefit reductions.
On average, seven analysts polled by Thomson Reuters expected loss per share of $0.38 for the quarter. Analysts' estimate typically excludes one-time items.
Still, quarterly net sales slipped to $409.6 million from $528.1 million for the same period last year, impacted by the extended production shutdowns of General Motors Co. and Chrysler Group LLC. Seven analysts estimated revenues of $420.34 million for the quarter.
Cost of goods sold came in at $321 million compared with $906.5 million last year.
Commenting on the third quarter performance, Co-Founder, Chairman of the Board and Chief Executive Officer, Richard Dauch said, "By finalizing new business agreements with General Motors Company and amending our senior credit agreements, we have successfully resolved the short-term liquidity concerns that were facing AAM. We have also preserved the significant value inherent in AAM's unparalleled manufacturing and engineering expertise; product, process and systems technology; and expanding new business backlog for our many key stakeholders."
The company's operating income was $44.5 million compared with operating loss of $421.4 million for the year earlier period. Third quarter Earnings Before Income Tax and Depreciation and Amortization or EBITDA was $75.7 million compared with Loss Before Income Tax and Depreciation and Amortization of $373.7 million for the year-ago period.
Third quarter customer production volumes for the North American light truck and SUV programs which supports for GM and Chrysler were down approximately 18% year-over-year.
For the nine month period, net loss attributable to the company was $301.7 million or $5.83 per share, narrower from $1.11 million or $21.55 per share for the prior year period and net sales slipped to $1.06 billion from $1.61 billion a year-ago.
The stock is currently trading at $6.09, down $0.50 or 7.59% on a volume of $6.99 million shares, much higher than three months average volume of $3.34 million shares on NYSE.
For comments and feedback: editorial@rttnews.com