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American Axle Stung by GM, Chrysler Woes

Scott Eden

Auto-parts maker American Axle & Manufacturing(AXL), which derives a majority of its business from General Motors(GM) and Chrysler(C), reported unsurprisingly dismal first-quarter results Friday.

Still, the company managed to post a narrower loss than Wall Street had expected, and investors bid up its shares in response. In midday trading Friday, American Axle stock changed hands at $1.09, up 9%.

The Detroit company, which builds drive-train systems and chassis modules, said it lost $32.7 million, or 59 cents per share, in the quarter, wider than its year-ago loss of $27 million, or 50 cents a share.

Figures for the just-ended period include charges for job cuts and "the redeployment of machinery and equipment." Earlier this week the company said it would "idle" its biggest factory in Detroit, reportedly moving production to Mexico. It had already laid off some 3,000 workers since last year.

Excluding those charges, the company lost 30 cents a share, better than analysts' expectations of 55 cents a share.

American Axle, which has specialized in making parts for SUVs and light trucks, said sales for the quarter declined 32% to $402.4 million from $587.6 million a year ago.