American Axle stock sinks after a surprise fourth-quarter loss

Shares of American Axle & Manufacturing Holdings Inc. (AXL) dropped 8.5% in premarket trading, after the company reported a surprise fourth-quarter loss. The maker of auto driveline systems and components reported net income of $13.9 million, or 11 cents a share, compared to a net loss of $46.3 million, or 41 cents a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss narrowed to 7 cents from 9 cents, but the FactSet consensus was for earnings per share of 1 cent.

Sales grew 12.8% to $1.393 billion, just above the FactSet consensus of $1.390 billion, as sales were boosted by the company’s Tekfor acquisition. For 2023, the company expects sales of $5.95 billion to $6.25 billion, which is around the FactSet consensus of $5.98 billion. In addition, the company expects adjusted free cash flow of $225 million to $300 million, compared with 2022 adjusted FCF of $313 million.

The stock had gained 2.3% over the past three months through Thursday, while the S&P 500 (SPX) had advanced 3.6%. The company’s fourth-quarter results came as a surprise to investors, as the company had to deal with customer production schedule volatility and ongoing supply chain challenges.

American Axle & Manufacturing Holdings Inc. is a leading global Tier 1 automotive supplier with a focus on driveline and drivetrain systems and related components. The company’s products are used in a variety of vehicles, including light trucks, SUVs, passenger cars, crossovers, and commercial vehicles. The company’s products are sold to more than 50 original equipment manufacturers (OEMs) in the global automotive industry.

In addition to its driveline and drivetrain systems, the company also provides chassis components, including steering systems, suspension systems, and stabilizer bars. The company also manufactures and supplies a range of other components, such as axles, driveshafts, and transmission components.

The company has a strong presence in the global automotive industry, with manufacturing facilities in the United States, Mexico, Europe, and Asia. The company is also a leading supplier of components to OEMs in China and India, and has a growing presence in the South American automotive market.

American Axle & Manufacturing Holdings Inc. is committed to providing innovative and reliable products and services to its customers. The company has a long-term focus on developing and introducing new products and technologies to meet the changing needs of the global automotive industry. The company is also focused on expanding its presence in emerging markets and increasing its share of the global automotive market.

American Axle & Manufacturing Holdings Inc. is a leader in the global automotive industry, and its fourth-quarter results were a surprise to investors. The company’s strong presence in the global automotive market, commitment to innovation, and focus on emerging markets should help it continue to be a leader in the industry.


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