American Axle & Manufacturing Holdings posted a net loss of $644.3m on second quarter sales of $490.5m.
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AAM said its quarterly results reflected the adverse impact of a strike by UAW union members at its original US locations in Michigan and New York and estimated the reduction in sales and operating income due to the strike to be $274.9m and $86.6m, respectively.
Special charges, asset impairments and other non-recurring operating costs of $575.6m also hit the result. The charges, substantially all of which were non-cash in the period, related to the new labour agreements and hourly and salaried attrition programmes, plant closures and other actions to rationalise underutilised capacity and align the supplier’s business to the market.
AAM said there was a 51% year-over-year decline in total light truck production volumes in Q2 2008 while content-per-vehicle of $1,312 was about the same.
“AAM’s results in the second quarter of 2008 were severely impacted by the brutal combination of the International UAW strike and steep declines in light truck and SUV production volumes resulting from a weakening domestic economy, rapidly escalating fuel prices, deteriorating credit market conditions and historically low consumer confidence,” said AAM chairman and CEO Richard Dauch.
Net sales in the first half were $1.1bn compared with $1.7bn in H1 2007. The company’s operating loss in the first half of 2008 was $609.5m compared to operating income of $95.9m in H1 2007.
