American Axle and Manufacturing Inc. (AXL - Free Report) has won a contract from Qoros Auto Co. to deliver advanced hybrid and electric driveline system featuring e-AAM technology. Investment in the driveline system enabled the company to develop an innovative patent-protected product portfolio; thus allowing it to command a dominant position in the segment.
The advanced e-AAM technology will provide a cost-efficient solution with dominant power density, a high degree of modularity and a full scope of controls and software. Customers will thus be benefited due to better fuel efficiency, lower CO2 emissions and improved safety, ride and handling performances.
The e-AAM technology will be featured in the future model year of Qoros vehicle, which will be manufactured in China. The other features in the e-AAM hybrid and electric driveline systems are electric drive unit, power box unit with an electric drive control module and a proprietary control strategy and software, which is designed for traction and hybrid controls functionality.
Headquartered in Shanghai, China, Qoros is an automotive manufacturing company. Qoros is a joint venture between Chery Automobile Co. and Israel Corporation.
American Axle is a leading supplier of driveline systems, modules and components for the light vehicle market. The company makes axles, driveshaft and chassis components for light trucks, sport utility vehicles and passenger cars.
American Axle is expected to grow on the back of its numerous product launches, which feature advanced driveline technology, and customer diversification. It has a Zacks Rank #2 (Buy).
American Axle reported earnings of $18.6 million or 23 cents per share before debt refinancing and redemption costs in the first quarter of the year, down 62.3% from 61 cents per share in the comparable quarter of 2012 (excluding special items). Nevertheless, earnings surpassed the Zacks Consensus Estimate of 15 cents.
Revenues of $755.6 million in the quarter were slightly higher compared with $751.5 million in the first quarter of 2012, but missed the Zacks Consensus Estimate of $757.0 million. The company’s revenues reflect the adverse impact related to the labor strike at General Motors’ (GM - Free Report) Rayong plant in Thailand.
Some stocks that are performing well in the industry where American Axle operates include Visteon Corp. (VC - Free Report) and Magna International Inc. (MGA - Free Report) . They carry a Zacks Rank #1 (Strong Buy).