American Axle and Manufacturing Inc.
) announced that it has invested $100 million in the Three Rivers
Manufacturing Facility located in Three Rivers, MI. With the
investment, the company will install new product lines, multiple
assembly stations, modify the paint line and thus refurbish the
business offices and lobby of the facility. It also plans to
enhance the shipping and capacity of the plant.
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The investment will likely generate about 500 new jobs by the end
of the year. It will also benefit the company by diversifying the
product portfolio and customer base in North America.
During full year 2012, the company has invested around $50
million and created about 300 jobs in MI. This investment was
made for technologically advanced machining and R&D
laboratory equipments, as well as for improvement of IT
infrastructure. The company also plans for further investment in
American Axle is a leading supplier of driveline systems, modules
and components for the light vehicles market. The company makes
axles, driveshafts and chassis components for light trucks, sport
utility vehicles and passenger cars. It retains a Zacks Rank #3
American Axle reported a profit of $5.2 million or 7 cents per
share in the third quarter of 2012, down significantly by 86%
from $38.3 million or 50 cents in the year-ago quarter. The
company's profit also considerably lagged the Zacks Consensus
Estimate by 27 cents.
The company's revenues increased 8.5% year over year to $702.9
million during the quarter and surpassed the Zacks Consensus
Estimate of $692.0 million. Higher sales volume and improved
business diversification based on global launch activity had
favorable impacts on the company's results. However, complexity
of the new products, process and facility launches, and lower
capacity utilization had negative impact on the result.
Commercial Vehicle Group Inc.
) with Zacks Rank #1 (Strong Buy) are performing well in the same
industry where American Axle operates.