American Axle Reaffirms

The company aims for $1.25 a share.
Author:
Publish date:

American Axle

(AXL) - Get Report

said it expects to make $1.20 a share to $1.30 a share for 2006. Analysts surveyed by Thomson First Call were expecting earnings of $1.14 a share for the year 2006.

The company said its outlook assumes that light truck production volume in North America will drop about 5% from 2005, and noncash expenses will increase by about $40 million.

The Detroit-based company also said that it is on track to improve its full-year free cash flow by about $100 million in 2006. Reflecting the impact of its earnings estimate, capital spending plans and other working capital initiatives, the company expects to generate about $40 million of free cash flow in 2006.

"The unprecedented, yet necessary structural transformation of the domestic automotive industry continues to dominate industry developments in 2006," the company said. "AAM is on track to deliver significant cash flow gains this year, while continuing to invest in exciting new global business growth and diversification initiatives."

American Axle rose 8 cents to $16.22.

This story was created through a joint venture between TheStreet.com and IRIS.