StockCall Analysis on Dana and American Axle: A Rough Road Ahead

       StockCall Analysis on Dana and American Axle: A Rough Road Ahead

  PR Newswire

  LONDON, January 18, 2013

LONDON, January 18, 2013 /PRNewswire/ --

For companies in the auto parts industry the recent economic rebound has been
a boon. As consumer confidence starts to recover and people begin to loosen
their purse, StockCall has initiated technical coverage on Dana Holding
Corporation (NYSE: DAN) and American Axle & Manufacturing Holdings Inc.
(NYSE:AXL). These free reports can be accessed upon registration to

http://www.stockcall.com/register

Americans have been putting off buying new cars during recession lows.
However, this trend looks to be gradually changing as U.S. households are now
estimated to be at their financially strongest in a decade as unemployment has
lowered and housing values have risen. Furthermore, the average age of cars on
the road has risen to a record 11 years, and it seems pent-up demand drove up
annual car sales by 10 percent in 2012 and some estimate that 2013 will see
sales of over $15 million.

Moving forward, automakers are reportedly planning a slew of new or redesigned
models for 2013 as they look to take advantage of the positive momentum. Some
estimate that as many as 61 new choices are slated to hit showrooms this year,
around 50 percent more than last year. While the climbing demand and rising
production plans are positives, some fear that it could challenge auto parts
suppliers, like Dana Holding, which were forced to cut back drastically during
the recession. Many suppliers could be guarded or reluctant to boost their
manufacturing or engineering capacity. Dana has recently anticipated that 2012
sales could be at the low end of its projections mainly impacted by feeble
commercial vehicle parts demand. The company which had seen its third quarter,
2012 earnings drop drastically on soft commercial sales, now estimates its
2013 results would most probably not meet market expectations. For 2013, auto
part maker Dana is expecting full year adjustedearningsof $1.88 to $1.95 per
share on revenue of about $7.1 billion. Our report on Dana Holding can be
downloaded at

http://www.StockCall.com/DAN011813.pdf

Many auto parts companies are preparing to release their quarterly results in
February and it will be interesting to see how they have fared. American Axle
& Manufacturing Holdings Inc. [ Free Technical Report on AXL ] ^(1) announced
that it will be releasing its earnings on February 8, 2013 pre-market. The
maker of axles and crankshafts saw its most recent quarterly sales surge by
8.5% but posted losses on the back of restructuring and debt refinancing costs
and elevated costs from releases of new products. Whilst American Axle relies
heavily on auto maker giant General motors, sales on its other segments
non-dependent on GM were up 14% in its last reported quarter. The company
anticipates its full year sales in 2012 to be around $2.9 billion,
representing a near 13.5% rise as compared to the full year 2011. For 2013,
the company projects full year sales to be around $3.2 billion basing its
sales estimate on the anticipated launch schedule of programs in AAM's new and
incremental business backlog and the assumption that the U.S. Seasonally
Adjusted Annual Rate of sales ("SAAR") will increase from approximately 14.5
million vehicle units in 2012 to approximately 15.0 million vehicle units in
2013.

Although the U.S. has been putting forth booming figures, commercial vehicles
have not been showing the same growth and Europe remains a drag.

Footer:

1.American Axle & Manufacturing Holdings Inc. Technical Analysis [
    http://www.StockCall.com/AmericanAxle&ManufacturingHoldingsInc011813.pdf ]

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