(Adds company's outlook, details, CFO remarks, analyst comments, byline, changes dateline from DETROIT)
By Susan Kelly
CHICAGO, Jan 23 (Reuters) - Auto parts maker American Axle & Manufacturing Holdings Inc. on Thursday posted a stronger than expected quarterly profit, fueled by higher production of light trucks by its biggest customer, General Motors Corp.
The Detroit-based maker of axles, driveshafts and chassis components said the launch of drive systems production for DaimlerChrysler AG's heavy-duty Dodge Ram pickups and GM's Hummer H2 sport utility vehicle helped the company achieve record sales in the quarter.
American Axle, whose shares rose 5 percent, also raised its 2003 profit forecast, saying new business will power growth despite potentially lower U.S. vehicle production.
The company said it still expected North American light vehicle production to exceed 16 million units in 2003.
"We see no sign of the consumer tiring here," said Robin Adams, American Axle's chief financial officer.
"We feel very comfortable that vehicle builds for 2003 are not going to be significantly lower than 2002 levels," the CFO told Reuters in an interview.
American Axle, which was founded in 1994 by a group of investors who purchased five aging GM manufacturing plants, has been working to diversify its customer base beyond the world's No. 1 automaker.
The parts supplier said sales to non-GM customers represented 18 percent of its total sales in the fourth quarter, up from 12 percent in the same period a year ago.
"The increase in non-GM sales, improved cash flow and debt reduction were all positive developments," said Merrill Lynch analyst John Casesa in a research note.
American Axle said its fourth-quarter net income rose to $52.2 million, or 99 cents a share, from $31.4 million, or 62 cents, in the same period a year ago.
Excluding a $5.5 million gain from insurance proceeds from a fire, the company said, it earned 89 cents per share.
Analysts, on average, expected earnings of 85 cents a share before special items, with estimates ranging from 81 cents to 88 cents, according to Thomson First Call.
Sales climbed 15 percent to a record $911.0 million from $791.6 million.
Cash flow from operations rose 61 percent to $91.5 million, while the net debt-to-capital ratio declined to 51 percent at year end from 62 percent the year before.
For 2003, American Axle said it expected first-quarter earnings of about $1 per share, above analysts' average estimate of 84 cents.
The company raised its earnings guidance for the full year to $3.65 a share from $3.50. Analysts' average forecast is $3.34, according to Thomson First Call.
American Axle's shares rose $1.17, or 4.9 percent, to $24.90 at midday on the New York Stock exchange.