American Axle (AXL) posted a net loss of 18 cents before special items in the third quarter of the year. This is better than the Zacks Consensus Estimate of a loss of 37 cents per share. Net sales dipped 22% to $409.6 million. However, in absolute terms, it is the highest quarterly sales of the year. The lower sales were on the back of a 18% decline in customer production volumes for the North American light truck and sport utility vehicle (SUV) programs that American Axle currently supports for GM and Chrysler. American Axle’s content-per-vehicle (measured by the dollar value of its product sales supporting GM's North American light truck and SUV programs and Chrysler's Heavy Duty Dodge Ram pickup trucks) fell to $1,396 from $1,453 in the third quarter of 2008. Non-GM sales constituted 18.3% of total sales in the reported quarter. The company’s non-GM ...

Autoliv (ALV) has shown a profit of $33.7 million or 37 cents per share in the third quarter of the year, after reporting losses for the preceding three quarters. The Sweden-based supplier of automotive safety systems has also beaten the Zacks Consensus Estimate of 24 cents per share. Nevertheless, earnings declined from $34 million, or 44 cents per share, in the same quarter of 2008. Autoliv believed higher light vehicle production from the "Cash for Clunkers" program and other stimulus packages boosted its earnings. Consolidated net sales declined 14% to $1.32 billion while organic sales (i.e., sales excluding currency effects and acquisitions/ divestitures) fell 12%. Segment Performance Sales of airbag products decreased 12% to $858 million. Organic sales in the segment dipped 11% compared to an 18% decline in light vehicle production (LVP) in the Triad (i.e. North America, Europe and Japan) due to new ...

Cummins (CMI) has revealed that it will recall about 270 production employees at its Columbus Midrange Engine Plant (CMEP) in Walesboro, Indiana. A temporary increase in orders for the Dodge Ram turbo diesel pickup truck engines made at the plant has led to the recall. The workers had been laid off or transferred to other Cummins facilities over the last year. Dodge Ram pickup – manufactured by Chrysler – is powered by Cummins’ 6.7-liter turbo diesel engine. The orders have increased as Chrysler seeks to build inventory for its 2010 Dodge Ram pickup. Consequently, Cummins plans to temporarily add a second production shift at CMEP on Oct. 19 that is expected to operate through the end of 2009. The recall will boost the plant’s workforce to 600 hourly workers. The company began production of the 2010 Dodge Ram engines in mid-September with approximately 340 production employees ...

Columbus, Indiana-based Cummins Inc. (CMI) is a leading worldwide designer, manufacturer and distributor of diesel and natural gas engines, electric power generation systems, and engine-related components, fuel systems, controls and air handling systems.

The company is temporarily resuming production at its MidRange Engine Plant in Columbus with one shift from July 13. The plant makes engines for Dodge Ram pick-up trucks.

The company had shut down the plant in May 2009 after Chrysler abandoned vehicle production during its bankruptcy proceedings. The company is also recalling 400 workers out of the 720 employees it laid off in May. Cummins has eliminated nearly 3,000 workers, mostly in Columbus, since the recession began.

The plant would produce engines for the 2009 Ram Model through mid-August. However, Cummins noted that the facility would again be closed after that, until Chrysler starts building its 2010 truck model in October 2009. Cummins would recall

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Shares of Ford Motor Co. (F) and General Motors Corp. (GM) posted gains yesterday (Tuesday) on speculation that consolidation in the U.S. domestic auto industry could be the struggling sector’s saving grace.Over the last three trading sessions, Ford shares are up almost 18%, while GM shares are up over 37% on reports of possible merger talks and asset sales.

Shares of Ford Motor Co. (F) and General Motors Corp. (GM) posted gains yesterday (Tuesday) on speculation that consolidation in the U.S. domestic auto industry could be the struggling sector’s saving grace.Over the last three trading sessions, Ford shares are up almost 18%, while GM shares are up over 37% on reports of possible merger talks and asset sales.

Weak SUV demand is greatly affecting American Axle & Manufacturing Holdings, Inc.’s (AXL) sales. Furthermore, high commodity costs and pricing pressure as well as production cuts by original equipment manufacturers (OEM) such as General Motors (GM) remain causes for concern. Thus, we rate the stock a Sell and set a six-month target price of $4.

The present North American automotive industry conditions characterized by slow car sales, production cuts, excessive inventories, rising commodity costs, and market share losses of leading U.S. automakers, are affecting the company negatively.

Despite the company’s attempts to diversify its customer base, GM still accounts for about 70% of current sales, and is constantly implementing production cuts. To make matters worse for AXL, it is exposed to platforms that have faced the maximum cuts. AXL’s largest vehicle programs -- the GMT800, the GMT360/370, and the Chrysler Group’s Dodge Ram heavy-duty pick-up account for nearly 70% of

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