American Axle & Manufacturing Holdings, Inc : Third Quarter 2012 Earnings Release
(Thomson Reuters ONE) -
Detroit, Michigan, October 26, 2012 -- American Axle & Manufacturing Holdings,
Inc. (AAM), which is traded as AXL on the NYSE, today reported its financial
results for the third quarter of 2012.
Third Quarter 2012 Results
* Third quarter 2012 sales of $702.9 million, up 8.5% from the third quarter
of 2011
* Non-GM sales grew approximately 14% on a year-over-year basis to $198.8
million
* Gross profit of $90.7 million, or 12.9% of sales
* Operating income of $30.1 million, or 4.3% of sales
* Net loss of $8.1 million, or $0.11 per share
* AAM's quarterly results reflect the impact of $10.1 million (or $0.14 per
share) of debt refinancing and redemption costs and $3.2 million (or $0.04
per share) of restructuring costs related to the closure of our Detroit
Manufacturing Complex and Cheektowaga Manufacturing Facility
AAM's results in the third quarter were a net loss of $8.1 million or $0.11 per
share. This compares to net earnings of $24.8 million or $0.33 per share in the
third quarter of 2011.
In the third quarter of 2012, AAM's quarterly results reflect the impact of
$10.1 million (or $0.14 per share) of debt refinancing and redemption costs and
$3.2 million (or $0.04 per share) of restructuring costs related to the closure
of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility.
"AAM's results in the third quarter of 2012 reflect an increased level of global
launch activity. The complexity of these new product, process and facility
launches, as well as lower capacity utilization resulting from planned customer
downtime on certain existing programs, adversely impacted our financial
performance in the quarter," said AAM's President and Chief Executive Officer,
David C. Dauch. "While we are focused on taking the necessary actions to
improve AAM's operating performance, we are very excited about the strong sales
growth and improved business diversification resulting from our global launch
activity."
Dauch also stated, "AAM's results in the third quarter of 2012 also reflect the
impact of a number of successful financing actions we completed in the quarter.
These actions included increasing commitments under our revolving bank credit
facility by approximately $116 million and issuing $550 million of 6.625% Senior
Unsecured Notes due 2022. The net proceeds were used for general corporate
purposes, including to fund the repurchase and redemption of all of the 5.25%
Senior Notes due in 2014. As a result of these actions and related initiatives,
AAM now has no significant debt maturities scheduled until 2017."
Net sales in the third quarter of 2012 increased approximately 8.5% to $702.9
million as compared to $647.6 million in the third quarter of 2011. Non-GM
sales in the third quarter of 2012 increased approximately 14% on a year-over-
year basis to $198.8 million.
AAM's content-per-vehicle is measured by the dollar value of its product sales
supporting our customers' North American light truck and SUV programs. In the
third quarter of 2012, AAM's content-per-vehicle was $1,466, approximately the
same as in the third quarter of 2011.
AAM's net sales of approximately $2.2 billion in the first three quarters of
2012 increased by $214.8 million, or 10.9%, as compared to approximately $2.0
billion in the first three quarters of 2011. Non-GM sales for the year-to-date
period of $588.5 million grew by approximately 10.0% on a year-over-year basis
as compared to the first three quarters of 2011.
AAM's gross profit in the third quarter of 2012 was $90.7 million, or 12.9% of
sales as compared to $103.5 million or 16.0% sales in the third quarter of
2011. In the first three quarters of 2012, AAM's gross profit was $315.7
million, or 14.4% of sales, as compared to $349.4 million for the first three
quarters of 2011.
AAM's operating income in the third quarter of 2012 was $30.1 million or 4.3% of
sales as compared to $44.5 million or 6.9% of sales in the third quarter of
2011. In the first three quarters of 2012, AAM's operating income was $137.8
million, or 6.3% of sales, as compared to $174.9 million for the first three
quarters of 2011.
AAM's SG&A spending in the third quarter of 2012 was $60.6 million as compared
to $59.0 million in the third quarter of 2011. AAM's R&D spending in the
quarter was $31.4 million as compared to $31.8 million in the third quarter of
2011.
In the first three quarters of 2012, AAM's SG&A spending was $177.9 million as
compared to $174.5 million in the first three quarters of 2011. AAM's R&D
spending for the first three quarters of 2012 increased by $4.9 million on a
year-over-year basis to $90.3 million as compared to $85.4 million in the first
three quarters of 2011.
AAM defines Adjusted EBITDA to be earnings before interest, taxes, depreciation
and amortization excluding the impact of curtailment gains, asset impairments,
restructuring costs and special charges related to the closure of the Detroit
Manufacturing Complex and Cheektowaga Manufacturing Facility, and debt
refinancing and redemption costs, to the extent applicable. AAM's Adjusted
EBITDA in the third quarter of 2012 was $70.1 million, or 10.0% of sales.
In the first three quarters of 2012, AAM's Adjusted EBITDA was $282.2 million,
or 12.9% of sales.
AAM defines free cash flow to be net cash provided by (or used in) operating
activities less capital expenditures net of proceeds from the sales of
equipment. Net cash used in operating activities in the first three quarters of
2012 was $196.6 million. Capital spending, net of proceeds from the sale of
equipment for the first three quarters of 2012, was $141.5 million. Reflecting
the impact of this activity, AAM's free cash flow was a use of $338.1 million in
the first three quarters of 2012.
AAM's free cash flow in the first three quarters of 2012 reflects the impact of
$225 million of contributions to our defined benefit pension plans. On September
27, 2012 AAM and the Pension Benefit Guaranty Corporation entered into an
agreement in connection with the closures of the Detroit Manufacturing Facility
and Cheektowaga Manufacturing Facility. As part of this agreement, in September
2012, we contributed $114.7 million in excess of our statutory minimums to our
hourly pension plan which is included in the contributions described above.
AAM's free cash flow in the first three quarters of 2012 also reflects cash
used for restructuring activities of $37.4 million.
A conference call to review AAM's third quarter 2012 results and new business
backlog is scheduled today at 10:00 a.m. ET. Interested participants may listen
to the live conference call by logging onto AAM's investor web site at
http://investor.aam.com or calling (877) 278-1452 from the United States or
(973) 200-3383 from outside the United States. A replay will be available from
Noon ET on October 26, 2012 until 5:00 p.m. ET November 2, 2012 by dialing (800)
642-1687 from the United States or (706) 645-9291 from outside the United
States. When prompted, callers should enter conference reservation number
32991103.
Non-GAAP Financial Information
In addition to the results reported in accordance with accounting principles
generally accepted in the United States of America (GAAP) included within this
press release, AAM has provided certain information, which includes non-GAAP
financial measures. Such information is reconciled to its closest GAAP measure
in accordance with the Securities and Exchange Commission rules and is included
in the attached supplemental data.
Management believes that these non-GAAP financial measures are useful to both
management and its stockholders in their analysis of the Company's business and
operating performance. Management also uses this information for operational
planning and decision-making purposes.
Non-GAAP financial measures are not and should not be considered a substitute
for any GAAP measure. Additionally, non-GAAP financial measures as presented by
AAM may not be comparable to similarly titled measures reported by other
companies.
AAM is a world leader in the manufacture, engineering, design and validation of
driveline and drivetrain systems and related components and modules, chassis
systems and metal-formed products for light trucks, sport utility vehicles,
passenger cars, crossover vehicles and commercial vehicles. In addition to
locations in the United States (Michigan, Ohio, Pennsylvania and Indiana), AAM
also has offices or facilities in Brazil, China, Germany, India, Japan,
Luxembourg, Mexico, Poland, Scotland, South Korea, Sweden and Thailand.
In this earnings release, we make statements concerning our expectations,
beliefs, plans, objectives, goals, strategies, and future events or performance.
Such statements are "forward-looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and relate to trends and events
that may affect our future financial position and operating results. The terms
such as "will," "may," "could," "would," "plan," "believe," "expect,"
"anticipate," "intend," "project," and similar words of expressions, as well as
statements in future tense, are intended to identify forward-looking statements.
Forward-looking statements should not be read as a guarantee of future
performance or results, and will not necessarily be accurate indications of the
times at, or by, which such performance or results will be achieved. Forward-
looking statements are based on information available at the time those
statements are made and/or management's good faith belief as of that time with
respect to future events and are subject to risks and may differ materially from
those expressed in or suggested by the forward-looking statements. Important
factors that could cause such differences include, but are not limited to:
global economic conditions, including the impact of the current sovereign debt
crisis in the Euro-zone; reduced purchases of our products by General Motors
Company (GM), Chrysler Group LLC (Chrysler) or other customers; reduced demand
for our customers' products (particularly light trucks and SUVs produced by GM
and Chrysler); liabilities arising from warranty claims, product recall, product
liability and legal proceedings to which we are or may become a party; our
ability to realize the expected revenues from our new business backlog; our
ability or our customers' and suppliers' ability to successfully launch new
product programs on a timely basis; our ability to achieve the level of cost
reductions required to sustain global cost competitiveness; our ability to
attract new customers and programs for new products; supply shortages or price
increases in raw materials, utilities or other operating supplies for us or our
customers as a result of natural disasters or otherwise; our ability to respond
to changes in technology, increased competition or pricing pressures; price
volatility in, or reduced availability of, fuel; our ability to develop and
produce new products that reflect market demand; lower-than-anticipated market
acceptance of new or existing products; our ability to maintain satisfactory
labor relations and avoid work stoppages; our suppliers', our customers' and
their suppliers' ability to maintain satisfactory labor relations and avoid work
stoppages; risks inherent in our international operations (including adverse
changes in political stability, taxes and other law changes, potential
disruptions of production and supply and currency rate fluctuations);
availability of financing for working capital, capital expenditures, R&D or
other general corporate purposes, including our ability to comply with financial
covenants; our customers' and suppliers' availability of financing for working
capital, capital expenditures, R&D or other general corporate purposes; adverse
changes in laws, government regulations or market conditions affecting our
products or our customers' products (such as the Corporate Average Fuel Economy
("CAFE") regulations); changes in liabilities arising from pension and other
postretirement benefit obligations; our ability to consummate and integrate
acquisitions and joint ventures; risks of noncompliance with environmental laws
and regulations or risks of environmental issues that could result in unforeseen
costs at our facilities; our ability to attract and retain key associates; other
unanticipated events and conditions that may hinder our ability to compete. It
is not possible to foresee or identify all such factors and we make no
commitment to update any forward-looking statement or to disclose any facts,
events or circumstances after the date hereof that may affect the accuracy of
any forward- looking statement.
# # #
For more information...
Christopher M. Son
Director, Investor Relations,
Corporate Communications & Marketing
(313) 758-4814
chris.son(at)aam.com
David Tworek
Manager, Communications
(313) 758-4883
david.tworek(at)aam.com
Or visit the AAM website at www.aam.com.
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
-------------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
----------------------------- ----------------------------
2012 2011 2012 2011
-------------- -------------- -------------- -------------
(In millions, except per (In millions, except per
share data) share data)
Net sales $ 702.9 $ 647.6 $ 2,194.2 $ 1,979.4
Cost of goods sold 612.2 544.1 1,878.5 1,630.0
-------------- -------------- -------------- -------------
Gross profit 90.7 103.5 315.7 349.4
Selling, general and
administrative
expenses 60.6 59.0 177.9 174.5
-------------- -------------- -------------- -------------
Operating income 30.1 44.5 137.8 174.9
Interest expense (25.3) (19.7) (72.7) (61.5)
Investment income 0.2 0.3 0.6 0.9
Other income
(expense), net
Debt refinancing
and redemption costs (10.1) - (10.1) (3.1)
Other, net (2.2) (0.2) (4.0) 0.1
-------------- -------------- -------------- -------------
Income (loss) before
income taxes (7.3) 24.9 51.6 111.3
Income tax expense 0.9 2.3 4.8 4.2
-------------- -------------- -------------- -------------
Net income (loss) (8.2) 22.6 46.8 107.1
-------------- -------------- -------------- -------------
Net loss
attributable to
noncontrolling
interests 0.1 2.2 1.0 4.6
-------------- -------------- -------------- -------------
Net income (loss) $ $ $ $
attributable to AAM (8.1) 24.8 47.8 111.7
-------------- -------------- -------------- -------------
Diluted earnings $ $ $ $
(loss) per share (0.11) 0.33 0.63 1.48
-------------- -------------- -------------- -------------
Diluted shares
outstanding 74.9 75.4 75.2 75.4
-------------- -------------- -------------- -------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
-------------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
----------------------------- ----------------------------
2012 2011 2012 2011
-------------- -------------- --------------- ------------
(In millions) (In millions)
$ $ 22.6 $ 46.8 $ 107.1
Net income (loss) (8.2)
Other comprehensive
income (loss), net
of tax
Defined benefit (102.7) 0.4 (117.2) 3.9
plans
Foreign 4.9 (30.2) (7.1) (16.7)
currency translation
adjustments
Change in 2.2 (9.0) 7.6 (7.9)
derivatives
-------------- -------------- --------------- ------------
Other comprehensive (95.6) (38.8) (116.7) (20.7)
income (loss)
-------------- -------------- --------------- ------------
Comprehensive income (103.8) (16.2) (69.9) 86.4
(loss)
Net loss 0.1 2.2 1.0 4.6
attributable to
noncontrolling
interests
Foreign currency
translation
adjustments
attributable to
noncontrolling
interests - 0.5 (0.2) (0.3)
-------------- -------------- --------------- ------------
Comprehensive income $ (103.7) $ (13.5) $ (69.1) $ 90.7
(loss) attributable
to AAM
-------------- -------------- --------------- ------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
-------------------------------------------------------------------------------
September 30, December 31,
2012 2011
------------------------- --------------------
(In millions)
ASSETS
Current assets
Cash and cash equivalents $ 209.0 $ 169.2
Accounts receivable, net 465.3 333.3
Inventories, net 242.3 177.2
Prepaid expenses and
other current assets 105.5 83.4
------------------------- --------------------
Total current assets 1,022.1 763.1
Property, plant and equipment,
net 1,007.6 971.2
Goodwill 156.3 155.9
GM postretirement cost sharing
asset 288.3 260.2
Other assets and deferred
charges 199.9 178.3
------------------------- --------------------
Total assets $ 2,674.2 $ 2,328.7
------------------------- --------------------
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities
Accounts payable $ 429.5 $ 337.1
Accrued compensation and
benefits 110.1 110.6
Deferred revenue 20.6 32.9
Accrued expenses and
other 89.6 95.5
------------------------- --------------------
Total current liabilities 649.8 576.1
Long-term debt 1,579.9 1,180.2
Deferred revenue 81.2 88.2
Postretirement benefits and
other long-term liabilities 861.0 903.8
------------------------- --------------------
Total liabilities 3,171.9 2,748.3
Stockholders' deficit (497.7) (419.6)
------------------------- --------------------
Total liabilities and
stockholders' deficit $ 2,674.2 $ 2,328.7
------------------------- --------------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
-------------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
------------------------------- ---------------------------
2012 2011 2012 2011
--------------- --------------- ------------ --------------
(In millions) (In millions)
Operating
activities
Net income (loss) $ (8.2) $ 22.6 $ 46.8 $ 107.1
Depreciation and
amortization 38.7 35.0 112.4 103.8
Other (251.7) (239.5) (355.8) (276.3)
--------------- --------------- ------------ --------------
Net cash flow used
in operating
activities (221.2) (181.9) (196.6) (65.4)
Investing
Activities
Purchases of
property, plant &
equipment (50.8) (39.4) (143.7) (111.0)
Proceeds from
sales of property,
plant & equipment 1.0 0.1 2.2 7.9
--------------- --------------- ------------ --------------
Net cash flow used
in investing
activities (49.8) (39.3) (141.5) (103.1)
Financing
Activities
Net increase in
long-term debt 404.3 88.0 397.0 40.6
Debt issuance
costs (10.1) (0.4) (10.1) (5.7)
Employee stock
option exercises - - 0.1 4.6
Purchase of
treasury stock - - (5.9) (0.1)
Purchase of
noncontrolling
interest - - (4.0) -
--------------- --------------- ------------ --------------
Net cash flow
provided by
financing
activities 394.2 87.6 377.1 39.4
Effect of exchange
rate changes on
cash 0.6 (2.3) 0.8 (1.1)
--------------- --------------- ------------ --------------
Net increase
(decrease) in cash
and cash
equivalents 123.8 (135.9) 39.8 (130.2)
Cash and cash
equivalents at
beginning of period 85.2 250.3 169.2 244.6
--------------- --------------- ------------ --------------
Cash and cash
equivalents at end
of period $ 209.0 $ 114.4 $ 209.0 $ 114.4
--------------- --------------- ------------ --------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
SUPPLEMENTAL DATA
(Unaudited)
-------------------------------------------------------------------------------
The supplemental data presented below is a reconciliation of certain financial
measures which is intended
to facilitate analysis of American Axle & Manufacturing Holdings, Inc.
business and operating performance.
Earnings before interest expense, income taxes and depreciation and
amortization (EBITDA) and adjusted EBITDA((a))
Three months ended Nine months ended
September 30, September 30,
------------------------- ------------------------------
2012 2011 2012 2011
----------- ------------- --------------- --------------
(In millions) (In millions)
Net income (loss)
attributable to AAM $ (8.1) $ 24.8 $ 47.8 $ 111.7
Interest expense 25.3 19.7 72.7 61.5
Income tax expense 0.9 2.3 4.8 4.2
Depreciation and
amortization 38.7 35.0 112.4 103.8
----------- ------------- --------------- --------------
EBITDA $ 56.8 $ 81.8 $ 237.7 $ 281.2
Debt refinancing and
redemption costs 10.1 - 10.1 3.1
Other special charges,
asset impairments,
curtailment gains and
restructuring costs
((e)) 3.2 11.4 34.4 11.4
----------- ------------- --------------- --------------
ADJUSTED EBITDA $ 70.1 $ 93.2 $ 282.2 $ 295.7
----------- ------------- --------------- --------------
Net debt((b)) to capital
September 30, December 31,
2012 2011
--------------- --------------
(In millions, except
percentages)
Total debt $ 1,579.9 $ 1,180.2
Less: cash and cash
equivalents 209.0 169.2
--------------- --------------
Net debt at end of
period 1,370.9 1,011.0
Stockholders' deficit (497.7) (419.6)
--------------- --------------
Total invested capital
at end of period $ 873.2 $ 591.4
--------------- --------------
Net debt to
capital((c)) 157.0% 171.0%
--------------- --------------
Net Operating Cash Flow and Free Cash Flow((d))
Three months ended Nine months ended
September 30, September 30,
----------------------- --------------------------------
2012 2011 2012 2011
----------- ----------- ----------- --------------------
(In millions) (In millions)
Net cash used in
operating activities $(221.2) $(181.9) $(196.6) $ (65.4)
Less: Purchases of
property, plant &
equipment, net of
proceeds from sale of
equipment (49.8) (39.3) (141.5) (103.1)
----------- ----------- ----------- --------------------
Net operating cash
flow (271.1) (221.2) (338.1) (168.5)
Free cash flow $(271.0) $(221.2) $(338.1) $(168.5)
----------- ----------- ----------- --------------------
-------------------------------------------------------------------------------
((a)) We define EBITDA to be earnings before interest, taxes, depreciation
and amortization. Adjusted EBITDA is defined as EBITDA excluding the impact
of curtailment gains, asset impairments, restructuring costs, and special
charges related to the closure of the Detroit Manufacturing Complex and
Cheektowaga Manufacturing Facility, and debt refinancing and redemption costs,
to the extent applicable. We believe that EBITDA and adjusted EBITDA are
meaningful measures of performance as they are commonly utilized by management
and investors to analyze operating performance and entity valuation. Our
management, the investment community and the banking institutions routinely
use EBITDA, together with other measures, to measure our operating performance
relative to other Tier 1 automotive suppliers. EBITDA and adjusted EBITDA
should not be construed as income from operations, net income or cash flow
from operating activities as determined under GAAP. Other companies may
calculate EBITDA and adjusted EBITDA differently.
((b)) Net debt is
equal to total debt
less cash and cash
equivalents.
((c)) Net debt to capital is equal to net debt divided by the sum of
stockholders' deficit and net debt. We believe that net debt to capital is a
meaningful measure of financial condition as it is commonly utilized by
management, investors and creditors to assess relative capital structure risk.
Other companies may calculate net debt to capital differently.
((d)) We define free cash flow as net cash provided by (used in) operating
activities less purchases of property, plant and equipment, net of proceeds
from sales of equipment. For purposes of calculating free cash flow, AAM
excludes the impact of purchase buyouts of leased equipment, if any. We
believe free cash flow is a meaningful measure as it is commonly utilized by
management and investors to assess our ability to generate cash flow from
business operations to repay debt and return capital to our stockholders.
Free cash flow is also a key metric used in our calculation of incentive
compensation. Other companies may calculate free cash flow differently.
((e) ) Special charges and restructuring costs of $3.2 million for three
months ended September 30, 2012 and $34.4 million for the nine months ended
September 30 , 2012 primarily relate to the closure of our Detroit
Manufacturing Complex and Cheektowaga Manufacturing Facility. This special
charge activity includes $28.7 million of expense related to pension and
postretirement benefits to be provided to certain eligible UAW associates as a
result of the Detroit Manufacturing Complex and Cheektowaga Manufacturing
Facility plant closures, $27.5 million of expense primarily related to asset
redeployment and other restructuring costs associated with the closures of
Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility and a
$21.8 million postretirement benefit curtailment gain recorded in the first
quarter of 2012.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: American Axle & Manufacturing Holdings, Inc via Thomson Reuters ONE
[HUG#1646305]
Unternehmensinformation / Kurzprofil:
Datum: 26.10.2012 - 14:00 Uhr
Sprache: Deutsch
News-ID 196772
Anzahl Zeichen: 38510
contact information:
Town:
Detroit, MI
Kategorie:
Business News
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