American Axle 2Q profit falls on restructuring moves
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DETROIT (Reuters) -- American Axle and Manufacturing Holdings Inc. said Friday that quarterly net income fell as costs rose and the company wrote down the closing of plants in Michigan and New York.
American Axle's second-quarter net profit fell to $4.7 million from last year's $49.2 million.
The results reflected restructuring costs of $36.5 million from the closing of its Detroit and Cheektowaga plants, as well as a charge of $28.1 million related to a union pension benefits claim.
Revenue rose 8 percent to $739.8 million from $686.2 million a year ago. But gross margins fell to 11.6 percent of sales from 19.0 percent last year.
Operating income tumbled to $30.3 million from $71.7 million a year earlier.
American Axle said its results also were affected by slowing demand in North America for four-wheel-drive pickups and SUVs.
But the company said its new-business backlog increased to $1.2 billion for new vehicles that will be introduced over the next two years in North America, Brazil and Thailand.
American Axle is a major supplier of axles and other driveline components. General Motors Co is its principal customer, representing nearly three-quarters of its sales.
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