DETROIT (Reuters) - American Axle & Manufacturing Holdings Inc. posted a quarterly profit on Tuesday on higher revenue after a year-ago loss. But the company signaled it has more work to do to enhance profits -- including reaching a new agreement with its unions.
American Axle reported net income of $13.1 million in the third quarter, compared with a net loss of $62.9 million in the year-earlier quarter when it took charges for unemployment benefits.
The company said it posted revenue of $774.3 million during the third quarter compared with $701.2 million during the third quarter of 2006.
"In the third quarter of 2007, AAM continued to achieve solid gains in productivity and made steady progress on its ongoing structural cost-reduction initiatives," American Axle CEO Richard E. Dauch said in a prepared statement.
"AAM will continue to take the necessary actions to achieve sustainable market cost competitiveness in our global operations. This includes a strategic emphasis on improving AAM's manufacturing capacity utilization and jointly developing new innovative labor agreements to enhance AAM's operating efficiency and flexibility."
For the first nine months of the year, American Axle said it posted net income of $62.5 million on revenue of $2.49 billion compared with a net loss of $33.9 million on revenue of $2.41 billion in 2006.
Based in Detroit, American Axle ranks No. 50 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $3.19 billion in 2006.
Reuters contributed to this report