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American Axle 1Q adj. profit beats Street view

DETROIT (AP) -- American Axle & Manufacturing Holdings Inc. said Friday that its first-quarter net income dropped 86 percent, stung by debt refinancing and redemption costs.

The auto supplier's adjusted results and revenue topped analysts' expectations, and its stock surged in afternoon trading to the highest level in more than two years.

American Axle earned $7.3 million, or 10 cents per share, for the three months ended March 31. That compares with $51.2 million, or 68 cents per share, a year ago.

The current quarter included 13 cents per share in debt refinancing and redemption costs.

Excluding that, adjusted earnings were 23 cents per share.

Revenue for the Detroit company edged up 1 percent to $755.6 million. American Axle said sales were hurt by a labor strike at a General Motors factory in Thailand.

Analysts expected 16 cents per share on revenue of $754.8 million, according to FactSet.

American Axle shares rose $1.70, or 12.4 percent, to $15.44 in afternoon trading. Earlier in the session the stock hit $15.58, the highest point since 2011.