While operating losses widened slightly at Albion Automotive in 2012, directors noted the company increased turnover by 6% annually during the year, to £31.6m, after winning two important new contracts.
The company did not provide details of the wins. However, in its latest accounts, directors noted that diversification of the revenue base has been a key strategic objective of the firm for some time.
Owned by Detroit-based AAM Holdings since 1998, Albion Automotive makes axles for commercial vehicles. The customer base includes European producers.
It operates in a tough market. "We are under continuing pressure to reduce our prices, which is a common practice in the automotive industry," wrote directors. Board members include Michael Simonte, chief financial officer of AAM Holdings.
Against that backdrop, the directors were pleased the company also reaped the rewards of a programme to boost efficiency implemented during the year.
Albion Automotive believes the productivity improvements will help it deal with expected market conditions.
Directors noted the automotive industry has been recovering from the crisis conditions experienced in 2008 and 2009. However, problems in the eurozone could threaten that recovery.
Albion Automotive said it will continue to invest in new products and processes to increase the company's efficiency and flexibility.
Last October, AAM said it was investing £3.6m in a new manufacturing and engineering centre of excellence in Glasgow. This will allow the company to target opportunities in the passenger vehicle market. The company won £480,000 Regional Selective Assistance funding from the Scottish Government.
In the 2012 accounts, Albion Automotive described itself as the direct descendant of Albion Motors, the renowned vehicle manufacturer founded in 1899. "As such, we embody a proud tradition of innovation, quality and customer service," the company said. "We have a skilled labour force, including an engineering capability and manufacturing facility in Glasgow."
Albion Automotive made an operating loss of £1.25m in 2012, compared with a loss of £1.17m in the preceding year. The gross loss, before administration costs, fell to £152,000 from £262,000.
The company employed an average of 173 people in 2012 compared with 161 in the preceding year.