NEW YORK -- Auto parts supplier American Axle & Manufacturing Holdings Inc. on Wednesday lowered its first-quarter earnings outlook, citing the impact of additional production cuts made by its customers.
The company said it now expects first-quarter earnings of 25 cents a share to 30 cents a share compared with its earlier outlook for earnings of 40 cents a share to 45 cents a share.
Analysts, on average, had expected earnings of 38 cents a share, according to Reuters Estimates.
American Axle said its earlier forecast was based on the assumption that its customers' production volumes for the major North American light-truck programs would be down 13 percent to 14 percent from a year ago, but now it said it expects volumes to be down 18 percent to 20 percent.
"2005 will be a challenging year for the entire domestic automotive industry. The same is true for American Axle," said CEO Richard E. Dauch. "We expect the production outlook for our major product programs to improve once our customers work through a near-term inventory correction."