American Axle Eyes NY Plant Layoffs - Analyst Blog
01 Dicembre 2011 - 6:50PM
Zacks
American Axle and Manufacturing
Inc. (AXL) plans to lay off 83 workers (75 hourly and eight
salaried employees) at its Cheektowaga plant in New York, which
will be permanently closed down next year. The auto parts maker
filed a WARN notice with the labor department, stating that the
workers would be laid off by February 25, 2012.
Few months
back, the company announced that it would shut down the Cheektowaga
plant as its negotiation with union members regarding the
ratification of a new contract failed. The company revealed that
the union workers refused the proposal of a 33% cut in pay and
benefits.
The plant
will be closed on or after February 26, 2012. However, the company
will continue to honor the labor agreements through February 25,
2012.
American
Axle is a leading supplier of driveline systems, modules and
components for the light vehicle market. The company makes axles,
driveshafts and chassis components for light trucks, sport utility
vehicles and passenger cars.
The company
is exposed to platforms that faced the maximum production cuts
following the global economic crisis. It also has a high exposure
to General Motors
Company (GM) and Chrysler, which
sought bankruptcy protection in 2009.
The Zacks #3
Rank (Hold) company posted a decline in profit to $38.3 million or
50 cents per share in the third quarter of the year from $38.8
million or 52 cents per share in the third quarter of 2010 (all
excluding special items). However, the profit was higher than the
Zacks Consensus Estimate by a penny. Net sales in the quarter
inched up 5% to $647.6 million from $618.2 million in the
third quarter of 2010.
Gross profit
dipped to $103.5 million or 16.0% of sales from $113.9 million or
18.4% of sales. Meanwhile, operating income declined to $44.5
million or 6.9% of sales compared with $60.7 million or 9.8% in the
year-ago quarter.
American
Axle focuses on expanding its manufacturing footprint in the
emerging markets at the cost of its big-ticket U.S. facilities. The
company plans to accelerate the expansion of its high quality,
cost-competitive and operationally flexible global manufacturing
footprint in Brazil, China, India, Mexico, Poland and Thailand.
Therefore, the failure to conclude a wage-cut agreement with the
workers would definitely leave the company with no choice but to
close the plant.
AMER AXLE & MFG (AXL): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
Zacks Investment Research
Grafico Azioni American Axle and Manufa... (NYSE:AXL)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni American Axle and Manufa... (NYSE:AXL)
Storico
Da Lug 2023 a Lug 2024