DETROIT -- Despite difficult industry headwinds, American Axle & Manufacturing Holdings Inc. surprised Wall Street with second-quarter net income of $20.4 million, up from $18.9 million for the year-ago quarter.
The Detroit driveline supplier benefited from General Motors' launch of its GMT900 SUVs. American Axle posted sales of $874.6 million for the period, up from $867.7 million for the year-ago period. Wall Street was pleased with the results but expects tough sledding for the third quarter. Full production of the full-sized SUVs will be partially offset by GM's dramatic lowering of production on mid-sized SUVs.
Asked about future growth and diversification from GM, American Axle CEO Richard E. Dauch predicted a significant acquisition over the next 12 to 18 months but provided no details.
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