American Axle shares tumble on $8.1M 3Q loss
DETROIT -- American Axle & Manufacturing Holdings Inc. said Wednesday that it posted an $8.1 million third-quarter loss due to the cost of closing factories and refinancing its debt.
Even after stripping out one-time costs, the Detroit-based company's adjusted profit fell far short of Wall Street analysts' expectations, and the auto parts supplier's shares tumbled more than 5 percent in morning trading.
American Axle said that higher costs stemming from the launch of new products and lower productivity due to customer downtime hurt the quarter's results. The company sells the bulk of its products to automaker General Motors.
Its loss amounted to 11 cents per share and compared with a profit of $24.8 million, or 33 cents per share, in the July-September quarter last year.
The recent quarter's results included charges of 14 cents per share for refinancing and redeeming debt, along with 4 cents per share tied to shutting down manufacturing facilities in Detroit and Cheektowaga, N.Y.
Excluding those costs, the company posted an adjusted profit of 7 cents per share. That was well below average Wall Street predictions of 33 cents per share, according to a FactSet poll.
Revenue rose 9 percent to $702.9 million from $647.6 million, ahead of analysts' predictions of $678.1 million. Non-GM sales rose 14 percent to $198.8 million.
American Axle shares lost 61 cents to $10.98 shortly after the opening bell..