American Axle & Manufacturing reports wider 1st-quarter loss as production cuts batter sales

American Axle posts wider 1Q loss on industry woes

DETROIT — Auto parts supplier American Axle & Manufacturing Holdings Inc. on Friday posted a wider first-quarter loss as production cuts at automakers sent its sales tumbling.

Sales at American Axle and other automotive parts suppliers have been battered by the auto industry downturn, as automakers slash production to cope with falling sales.

The parts company, which makes drive-train systems and chassis modules, said it lost $32.7 million, or 59 cents per share, versus a loss of $27 million, or 50 cents per share, a year ago.

Sales fell 32 percent to $402.4 million from $587.6 million.

American Axle said it took a charge during the quarter of 22 cents per share due to job cuts and 7 cents per share due to machinery redeployment. Excluding those charges, the company lost 30 cents per share.

Analysts surveyed by Thomson Reuters forecast a loss of 55 cents per share on $427.2 million in revenue. Such results typically exclude one-time items.

Shares of American Axle rose 7 cents, or 7 percent, to $1.07 in premarket electronic trading. Shares have plunged from a 52-week high of $25 set last May.

Union officials at the company’s Detroit manufacturing complex said this week the largest plant there is slated to close and production will be moved to Mexico. The company has not publicly confirmed its plans for the plant.

In March, American Axle’s auditors raised doubts about the company’s ability to continue operations, citing the uncertainty surrounding the futures of GM and Chrysler, which together account for the vast majority of sales.

Chrysler filed for Chapter 11 bankruptcy protection on Thursday and will halt all automobile production starting next week. GM is racing to restructure by a June 1 deadline to become eligible for more government aid.