American Axle & Manufacturing Holdings third-quarter earnings dropped 47% on climbing expenses, and the company has predicted year-end earnings at the low end of earlier guidance.
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“Lower production levels and increased steel and metallic material prices continue to pressure sales and inflate costs,” chairman and chief executive Richard Dauch said in a statement cited by the Associated Press (AP), which noted that nearly 80% of the company’s revenue comes from General Motors.
The company reportedly earned $19.3 million, or 38 cents per share, down from $36.4 million, or 68 cents per share, a year ago. Excluding certain non-operating items, the company said its earnings would have been even lower at 30 cents per share.
Revenue inched up 1% to $848.1 million from $841.6 million. According to AP, American Axle said sales to companies other than GM grew 18% to $207.2 million, or 24% of sales.
Production volume declined 4%, reflecting a downturn in the market for light trucks, the company reportedly said.
The Associated Press said American Axle now expects 2005 earnings of $1.40 to $1.45 per share, the low end of previous guidance for earnings of $1.40 to $1.55 per share. The outlook includes a charge of $8.9 million, or 12 cents per share, related to job cuts.
