2024-05-13 15:04:00 ET
Summary
- American Axle & Manufacturing has shown strong net sales growth over the past three years, but profit margins have been under pressure.
- In 1Q24, AXL reported strong top-line growth and expanded profit margins year-over-year, providing some relief.
- For 2024, light vehicle production is anticipated to grow. In addition, AXL secured new business wins in the quarter. These are expected to bolster its growth outlook.
- Although margins showed signs of recovery in 1Q24, it is too early to come to a conclusion. Additionally, its current net margin is low, which does not provide sufficient buffer during tough economic conditions.
Synopsis
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American Axle & Manufacturing: Growing Vehicle Production Volume Offset By Low Margins