Auditors for American Axle & Manufacturing Holdings (ALX) have questioned the company's ability to continuing operating, a reflection of the depressed state of the auto industry.
In its annual report issued Thursday, American Axle said auditors raised "substantial doubt about the company's ability to continue as a going concern."
The Detroit-based supplier said it is a victim of "the current automotive industry environment and the uncertainty relating to the ability of General Motors (GM) and Chrysler to continue operating as going concerns," and that it may be unable to comply with financial covenants. GM and Chrysler account for 84% of sales, the company said. On Thursday, however, GM said it wouldn't need a $2 billion loan from the government this month.
Last week, American Axle said it has fallen below New York Stock Exchange listing standards, related to market capitalization and stockholder equity. The NYSE requires that the average market capitalization of a listed company be not less than $75 million over a consecutive 30 trading-day period and that stockholders' equity be not less than $75 million. The company said it will seek to achieve compliance.Shares were trading Friday morning at 76 cents, up 1 cent.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV