American Axle & Manufacturing Holdings Inc. tumbled the most in more than two years after the maker of axles and crankshafts reported third-quarter earnings that fell short of analysts’ estimates.
The shares declined 10 percent to $10.38 at the close in New York, the biggest drop since June 2010. The Detroit-based company’s stock has gained 5 percent this year.
American Axle today reported profit of 7 cents a share excluding costs of debt restructuring and plant closings. The average of 14 analysts’ estimates compiled by Bloomberg was for earnings of 33 cents. The parts supplier posted a net loss of $8.1 million, or 11 cents a share, compared with net income of $24.8 million, or 33 cents, a year earlier.
Introduction of new products and “planned customer downtime” on some existing programs “adversely affected” the quarterly results, American Axle said in a statement. The company had been owned by the predecessor of General Motors Co. and has been trying to widen its customer base.
Revenue rose 8.5 percent to $702.9 million. American Axle in a separate regulatory filing today projected 2012 full-year sales of more than $2.9 billion. The average estimate is $2.89 billion.