DETROIT -- U.S. supplier American Axle & Manufacturing Holdings Inc. said third-quarter earnings slid 36 percent, mainly because of costs tied to plant closings.
The company posted third-quarter net income of $24.8 million, down from $38.8 million a year earlier.
The latest period included $11.9 million in charges primarily related to the planned closure of two U.S. manufacturing facilities.
The company said previously it will close plants in Michigan and New York after failing to secure competitive labor contracts with the UAW.
American Axle said the quarter's special charges included a $1.6 million asset impairment recorded by its e-AAM joint venture related to a long-term supply agreement with Saab Automobile AB.
Revenue increased 5 percent to $647.6 million during the latest period.
American Axle, which produces driveline systems, chassis systems and forged components for trucks, buses and cars, has rebounded from a series of financial losses that ended in 2009.
Light-vehicle demand in the U.S. market is up 10 percent through September. U.S. light vehicle sales at General Motors Co., a major customer and former parent, are up 16 percent this year.
American Axle is also diversifying beyond the light truck market.
The company said today that two-thirds of its new business backlog that will launch from 2012 through 2014 is for passenger car, crossover vehicle and commercial vehicle programs.
"AAM's sustained strong profit performance over the past two years is enabling us to accelerate the investment in advanced product, process and systems technology necessary to expand and diversify our customer base, product portfolio and served markets," CEO Richard E. Dauch said in a statement.
"As a result, we are on track to grow our annual sales to exceed $3 billion by 2013 while significantly improving our business diversification and balance sheet strength."