American Axle cites strike in $27-million loss

http://www.freep.com/apps/pbcs.dll/article?AID=/20080425/BUSINESS01/80425042/1014/business01

BY BRENT SNAVELY • FREE PRESS STAFF WRITER • April 25, 2008

American Axle & Manufacturing Holdings Inc. said today its first-quarter earnings were severely impacted by a two-month-long UAW strike over wages and benefits and said sales dropped substantially due to production cuts by its customers.

The company reported a net loss of $27 million or 52 cents per share for the three- month period ending March 31. For the same period last year the company reported a profit of $15.7 million or 30 cents per share.

American Axle said the strike caused sales to decline by about $132 million and its operating income to drop by about $45.8 million.

“AAM’s first-quarter 2008 results were severely impacted by the strike called by the International UAW at AAM’s original U.S. locations on February 25, 2008,” company cofounder, Chairman and CEO Richard E. Dauch said in a statement.

The results came up far short of analysts expectations of a one-cent loss for the quarter.

David Leiker, equity analyst with Robert W. Baird & Co. said in a research note Friday that it was an “ugly quarter,” for the company, saying the strike hurt the company more than expected.

FULL story at link.