American Axle Posts Loss On Plant Shutdowns

DETROIT (AP) -- Auto supplier American Axle & Manufacturing Holdings Inc. said Wednesday it cut its second-quarter losses by more than half although its revenue fell by the same amount due to extended shutdowns at General Motors Co. and Chrysler Group plants.

The Detroit company reported a loss of $288.6 million, or $5.20 per share, compared with a loss of $644.3 million, or $11.98 per share, for the second quarter in 2008.

Revenue fell 50 percent to $245.6 million from $490.5 million for the same quarter a year ago.

The company, which makes drivetrains and chassis modules, said $203.6 million of the revenue decrease was directly attributable to the extended shutdowns at GM and Chrysler plants during the quarter. Chrysler shut down plants in May following the company's bankruptcy protection filing, while GM plants shut down in the weeks before its June 1, Chapter 11 filing.

The results included special charges of $191.8 million, or $3.46 per share, in one-time charges on asset impairments and work force reductions, the company said. Excluding the charges, American Axle lost $96.8 million, $1.74 per share.

Those results still missed analyst estimates. Analysts surveyed by Thomson Reuters expected a loss of 77 cents per share on revenue of $279.6 million.

"Amid the increasingly challenging global market conditions we are experiencing this year, American Axle remains focused on managing what we can control," said company founder, Chairman and CEO Richard Dauch in a statement Wednesday. "We have nearly completed the comprehensive restructuring, resizing and recovery of our business by realigning AAM's global manufacturing capacity and reducing AAM's operating break-even level."

American Axle said last week that it negotiated an extension on the waiver of its revolving credit facility to Aug. 20.

Shares of American Axle slid fell 8 cents, or 3.1 percent, to $2.53 in morning trading.

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