American Axle shares fall 5.5% despite rise in Q1 profits
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American Axle slid 5.5 percent to close at $10.18 on the New York Stock Exchange. Earlier, it fell to $10.08, the biggest intraday drop since Feb. 29. The shares were up 8.9 percent this year before today.
First-quarter net income rose 36 percent to $51.2 million, or 68 cents a share, from $37.7 million, or 50 cents, a year earlier, the company said in a statement today. Excluding some items, including costs to close two plants, profit was 61 cents a share, compared with 64 cents, the average estimate of 11 analysts.
Revenue rose 16 percent to $751.5 million, as the Detroit- based company boosted sales to companies other than General Motors Co. by 8.5 percent to $193.6 million. The average estimate of seven analysts surveyed by Bloomberg was for sales of $751 million.
American Axle had been owned by GM's predecessor, General Motors Corp. In 2009, American Axle received 78 percent of its sales from GM, according to a regulatory filing in 2010. Non-GM customers accounted for 27 percent of revenue in all of 2011.
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