UPDATE 3-American Axle posts first quarterly profit in 2 years

* Q3 EPS 35 cents, first quarterly profit since Q3 2007

* Adjusted loss 18 cents/shr; Wall St view 38 cents loss

* Says sales to double to $3 bln by 2013

* Says successfully resolved short-term liquidity concern

* Shares down 4.6 percent (Adds share prices, analyst comparisons, comments, byline)

By Soyoung Kim

DETROIT, Oct 30 (Reuters) - American Axle & Manufacturing Holdings Inc (AXL.N) posted its first quarterly profit in two years and said cost cuts coupled with a recovery in U.S. auto sales had positioned the company for sustained profitability.

The results mark a turnaround for the auto parts supplier, which narrowly averted bankruptcy in September by negotiating amended credit agreements with lenders and winning $220 million in financial aid from its biggest customer, General Motors Co [GM.UL].

The company also joins other major suppliers including Johnson Controls (JCI.N) and Tenneco (TEN.N) in reporting improved quarterly results after sweeping cost-cutting to address the recession and steep production cuts by automakers.