American Axle earnings rise on large tax benefit
DETROIT -- American Axle & Manufacturing Holdings Inc., helped by a large tax benefit, said fourth-quarter net profits increased tenfold to $319.9 million from $31.1 million in the same period a year ago.
Fourth-quarter revenue for the company, which makes automotive drivetrain and chassis systems and components, grew 22 percent to $736.7 million.
Sales to companies other than General Motors -- a priority of the Detroit-based supplier and one-time GM subsidiary -- rose 17 percent in the fourth quarter, to $204.1 million.
American Axle said the latest results include a $337.5 million benefit related to the reversal of the company's valuation allowance against federal deferred tax assets in the United States.
For all of 2012, net income rose to $367.7 million from $142.8 million.
Annual revenue increased by 13 percent to $2.9 billion, compared to $2.6 billion in 2011.
The company's non-GM sales increased 12 percent on the year to $792.6 million last year from $710 million in 2011.
American AxleCEO David Dauch said the company faced "operational challenges and lower profitability" in the second half of 2012 mostly because of higher product launch activities. In a statement, he said the company is "taking necessary actions to correct these performance issues" but did not provide specific details.
"2012 was an eventful year for AAM, characterized by substantial growth and diversification due to a high level of global launch activity," Dauch said. "We made great strides in executing our diversification initiatives while strengthening our global footprint through our expanding customer and product base."