AAM Reports Second Quarter 2015 Financial Results
(Thomson Reuters ONE) -
Achieves record quarterly sales of $1.0 billion, driven by 15% year-over-year
increase in non-GM sales
Detroit, Michigan, July 31, 2015 -- American Axle & Manufacturing Holdings, Inc.
(AAM), which is traded as AXL on the NYSE, today reported its financial results
for the second quarter of 2015.
Second Quarter 2015 Results
* Second quarter 2015 sales of $1.0 billion, up 6.0% on a year-over-year basis
* Non-GM sales grew 15.1% on a year-over-year basis to $343.1 million
* Gross profit of $164.5 million, or 16.4% of sales
* Net income of $58.6 million, or $0.75 per share
* EBITDA (earnings before interest, income taxes, depreciation and
amortization) of $146.9 million, or 14.6% of sales
* Free cash flow (net cash provided by operating activities less capital
expenditures net of proceeds from the sale of property, plant, and
equipment) of $100.1 million
AAM's net income in the second quarter of 2015 was $58.6 million, or $0.75 per
share as compared to net income of $52.2 million, or $0.67 per share, in the
second quarter of 2014.
"AAM's second quarter financial performance was highlighted by quarterly records
for sales and profit dollars, driven by sales growth that continues to outpace
the industry and strong operational performance," said AAM's Chairman, President
& Chief Executive Officer, David C. Dauch. "AAM remains focused on flawlessly
launching new customer programs in the second half of 2015, many of which
feature AAM's advanced product technologies designed to increase fuel
efficiency, advance lightweighting initiatives and improve safety, ride and
handling performance. These innovative solutions strongly position us to expand
and diversify AAM's customer base and product portfolio, while continuing to
deliver excellent profit and cash flow performance for the benefit of all key
stakeholders."
AAM's sales in the second quarter of 2015 increased approximately 6.0% to $1.0
billion as compared to $946.9 million in the second quarter of 2014. Non-GM
sales grew 15.1% on a year-over-year basis to $343.1 million in the second
quarter of 2015 as compared to $298.1 million in the second quarter of 2014.
AAM's net sales in the first half of 2015 increased approximately 9.3% to $1.97
billion as compared to $1.81 billion in the first half of 2014. Non-GM sales in
the first half of 2015 increased approximately 15% on a year-over-year basis to
$672.0 million as compared to $585.9 million in the first half of 2014.
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
second quarter of 2015, AAM's content-per-vehicle was $1,637 as compared to
$1,640 in the second quarter of 2014.
AAM's gross profit in the second quarter of 2015 was $164.5 million, or 16.4% of
sales, as compared to $149.0 million, or 15.7% of sales, in the second quarter
of 2014.
AAM's gross profit for the first half of 2015 was $317.3 million as compared to
$270.9 million in the first half of 2014. Gross margin was 16.1% in the first
half of 2015 as compared to 15.0% in the first half of 2014.
In the second quarter of 2015, AAM's operating income was $93.9 million, or
9.4% of sales, as compared to $87.5 million, or 9.2% of sales, in the second
quarter of 2014.
AAM's operating income in the first half of 2015 was $178.2 million as compared
to $152.3 million in the first half of 2014. Operating margin was 9.0% in the
first half of 2015 as compared to 8.4% in the first half of 2014.
AAM's SG&A spending in the second quarter of 2015 was $70.6 million, or 7.0% of
sales, as compared to $61.5 million, or 6.5% of sales, in the second quarter of
2014. AAM's R&D spending in the second quarter of 2015 was $29.5 million as
compared to $24.4 million in the second quarter of 2014.
In the first half of 2015, AAM's SG&A spending was $139.1 million as compared to
$118.6 million in the first half of 2014. AAM's R&D spending in the first half
of 2015 was $56.8 million as compared to $50.2 million in the first half of
2014.
In the second quarter of 2015, AAM's net income was $58.6 million, or $0.75 per
share as compared to $52.2 million, or $0.67 per share in the second quarter of
2014. AAM's net income in the first half of 2015 was $111.8 million, or $1.43
per share as compared to $85.8 million, or $1.11 per share in the first half of
2014.
AAM defines EBITDA to be earnings before interest, income taxes, depreciation
and amortization. In the second quarter of 2015, AAM's EBITDA increased over
$10 million to $146.9 million, or 14.6% of sales, as compared to $136.7 million,
or 14.4% of sales, in the second quarter of 2014.
AAM defines free cash flow to be net cash provided by operating activities less
capital expenditures net of proceeds from the sale of property, plant and
equipment.
Net cash provided by operating activities for the second quarter of 2015 was
$147.9 million. Capital spending, net of proceeds from the sale of property,
plant and equipment, for the second quarter of 2015 was $47.8 million.
Reflecting the impact of this activity, AAM generated free cash flow of $100.1
million for the second quarter of 2015.
A conference call to review AAM's second quarter 2015 results is scheduled today
at 10:00 AM 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
(855) 681-2072 from the United States or (973) 200-3383 from outside the United
States. A replay will be available from Noon ET on July 31, 2015 until 5:00
p.m. ET August 7, 2015 by dialing (855) 859-2056 from the United States or (404)
537-3406 from outside the United States. When prompted, callers should enter
conference reservation number 34605437.
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 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, electric drive 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," "target," and similar words or
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: reduced purchases of our products by General Motors Company
(GM), FCA US LLC (FCA), formerly known as Chrysler Group LLC, or other
customers; reduced demand for our customers' products (particularly light trucks
and sport utility vehicles (SUVs) produced by GM and FCA); 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
attract new customers and programs for new products; our ability to respond to
changes in technology, increased competition or pricing pressures; our ability
to achieve the level of cost reductions required to sustain global cost
competitiveness; 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 successfully implement upgrades to our
enterprise resource planning systems; liabilities arising from warranty claims,
product recall or field actions, product liability and legal proceedings to
which we are or may become a party, or the impact of product recall or field
actions on our customers; 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;
global economic conditions; 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);
our ability or our customers' and suppliers' ability to successfully launch new
product programs on a timely basis; our ability to realize the expected revenues
from our new and incremental business backlog; negative or unexpected tax
consequences; price volatility in, or reduced availability of, fuel; our ability
to consummate and integrate acquisitions and joint ventures; our ability to
attract and retain key associates; our ability to protect our intellectual
property and successfully defend against assertions made against us;
availability of financing for working capital, capital expenditures, research
and development (R&D) or other general corporate purposes including
acquisitions, as well as 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; changes in liabilities
arising from pension and other postretirement benefit obligations; risks of
noncompliance with environmental laws and regulations or risks of environmental
issues that could result in unforeseen costs at our facilities; 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); our ability or our customers' and suppliers' ability to comply
with the Dodd-Frank Act and other regulatory requirements and the potential
costs of such compliance; and 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
Vitalie Stelea
Manager, Investor Relations
(313) 758-4635
vitalie.stelea(at)aam.com
Or visit the AAM website at www.aam.com.
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended Six months ended
June 30, June 30,
-------------------------- --------------------------
2015 2014 2015 2014
------------- ------------ ------------- ------------
(in millions, except per (in millions, except per
share data) share data)
Net sales $ 1,004.0 $ 946.9 $ 1,973.1 $ 1,805.7
Cost of goods sold 839.5 797.9 1,655.8 1,534.8
------------- ------------ ------------- ------------
Gross profit 164.5 149.0 317.3 270.9
Selling, general and
administrative expenses 70.6 61.5 139.1 118.6
------------- ------------ ------------- ------------
Operating income 93.9 87.5 178.2 152.3
Interest expense (24.8 ) (25.1 ) (49.9 ) (50.1 )
Investment income 0.6 0.3 1.4 0.6
Other income, net 1.8 0.8 4.2 1.3
------------- ------------ ------------- ------------
Income before income
taxes 71.5 63.5 133.9 104.1
Income tax expense 12.9 11.3 22.1 18.3
------------- ------------ ------------- ------------
Net income $ 58.6 $ 52.2 $ 111.8 $ 85.8
------------- ------------ ------------- ------------
Diluted earnings per
share $ 0.75 $ 0.67 $ 1.43 $ 1.11
------------- ------------ ------------- ------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Three months ended Six months ended
June 30, June 30,
--------------------- ----------------------
2015 2014 2015 2014
---------- ---------- ----------- ----------
(in millions) (in millions)
Net income $ 58.6 $ 52.2 $ 111.8 $ 85.8
Other comprehensive income (loss),
net of tax
Defined benefit plans, net of
tax((a)) 0.9 0.6 4.8 5.7
Foreign currency translation
adjustments 3.0 3.6 (28.5 ) 11.4
Change in derivatives (1.2 ) 0.5 (1.7 ) 1.4
---------- ---------- ----------- ----------
Other comprehensive income (loss) 2.7 4.7 (25.4 ) 18.5
---------- ---------- ----------- ----------
Comprehensive income $ 61.3 $ 56.9 $ 86.4 $ 104.3
---------- ---------- ----------- ----------
________________________________________
(a) Amounts are net of tax of $(0.4) million and $(2.4) million for the three
and six months ended June 30, 2015, respectively, and $(0.2) million and
$(2.9) million for the three and six months ended June 30, 2014,
respectively.
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December
2015 31, 2014
------------- --------------
(in millions)
ASSETS
Assets
Cash and cash equivalents $ 301.3 $ 249.2
Accounts receivable, net 638.9 532.7
Inventories, net 237.9 248.8
Prepaid expenses and other current assets 113.9 108.8
------------- --------------
Total current assets 1,292.0 1,139.5
Property, plant and equipment, net 1,041.5 1,061.1
Deferred income taxes 355.3 368.8
Goodwill 154.6 155.0
GM postretirement cost sharing asset 262.8 274.5
Other assets and deferred charges 254.4 260.3
------------- --------------
Total assets $ 3,360.6 $ 3,259.2
------------- --------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities and Stockholders' Equity
Current portion of long-term debt $ 14.8 $ 13.0
Accounts payable 490.5 444.3
Accrued compensation and benefits 113.0 109.1
Deferred revenue 21.7 22.1
Accrued expenses and other current liabilities 97.6 98.7
------------- --------------
Total current liabilities 737.6 687.2
Long-term debt 1,516.3 1,523.4
Deferred revenue 73.6 94.2
Postretirement benefits and other long-term
liabilities 827.9 841.0
------------- --------------
Total liabilities 3,155.4 3,145.8
Total stockholders' equity 205.2 113.4
------------- --------------
Total liabilities and stockholders' equity $ 3,360.6 $ 3,259.2
------------- --------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
----------------------- ----------------------
2015 2014 2015 2014
----------- ----------- ----------- ----------
(in millions) (in millions)
Operating Activities
Net income $ 58.6 $ 52.2 $ 111.8 $ 85.8
Adjustments to reconcile net
income to net cash provided by
operating activities
Depreciation and
amortization 50.6 48.1 100.6 95.0
Other 38.7 37.6 (58.1 ) (98.4 )
----------- ----------- ----------- ----------
Net cash provided by operating
activities 147.9 137.9 154.3 82.4
----------- ----------- ----------- ----------
Investing Activities
Purchases of property, plant &
equipment (47.8 ) (55.8 ) (91.4 ) (103.7 )
Proceeds from sale of
property, plant & equipment - 0.4 0.1 8.3
----------- ----------- ----------- ----------
Net cash used in investing
activities (47.8 ) (55.4 ) (91.3 ) (95.4 )
----------- ----------- ----------- ----------
Financing Activities
Net debt activity (3.2 ) (34.0 ) (4.4 ) (13.4 )
Debt issuance costs - (0.1 ) - (0.3 )
Employee stock option
exercises - 0.6 0.4 1.2
Purchase of treasury stock (2.4 ) - (2.7 ) (0.3 )
----------- ----------- ----------- ----------
Net cash used in financing
activities (5.6 ) (33.5 ) (6.7 ) (12.8 )
----------- ----------- ----------- ----------
Effect of exchange rate
changes on cash 1.1 0.3 (4.2 ) 0.7
----------- ----------- ----------- ----------
Net increase (decrease) in
cash and cash equivalents 95.6 49.3 52.1 (25.1 )
Cash and cash equivalents at
beginning of period 205.7 79.6 249.2 154.0
----------- ----------- ----------- ----------
Cash and cash equivalents at
end of period $ 301.3 $ 128.9 $ 301.3 $ 128.9
----------- ----------- ----------- ----------
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)((a))
Three months ended Six months ended
June 30, June 30,
----------------------- ----------------------
2015 2014 2015 2014
----------- ----------- ----------- ----------
(in millions) (in millions)
Net income $ 58.6 $ 52.2 $ 111.8 $ 85.8
Interest expense 24.8 25.1 49.9 50.1
Income tax expense 12.9 11.3 22.1 18.3
Depreciation and amortization 50.6 48.1 100.6 95.0
----------- ----------- ----------- ----------
EBITDA $ 146.9 $ 136.7 $ 284.4 $ 249.2
----------- ----------- ----------- ----------
Net debt((b) )to capital
June December
30, 2015 31, 2014
------------- --------------
(in millions, except
percentages)
Total debt $ 1,531.1 $ 1,536.4
Less: cash and cash equivalents 301.3 249.2
------------- --------------
Net debt at end of period 1,229.8 1,287.2
Stockholders' equity 205.2 113.4
------------- --------------
Total invested capital at end of period $ 1,435.0 $ 1,400.6
------------- --------------
Net debt to capital((c)) 85.7 % 91.9 %
------------- --------------
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.
Free Cash Flow((d))
Three months ended Six months ended
June 30, June 30,
----------------------- ----------------------
2015 2014 2015 2014
----------- ----------- ----------- ----------
(in millions) (in millions)
Net cash provided by operating
activities $ 147.9 $ 137.9 $ 154.3 $ 82.4
Less: Purchases of property,
plant & equipment, net
of proceeds from sale of
property, plant & equipment (47.8 ) (55.4 ) (91.3 ) (95.4 )
----------- ----------- ----------- ----------
Free cash flow $ 100.1 $ 82.5 $ 63.0 $ (13.0 )
----------- ----------- ----------- ----------
________________________________________
(a) We define EBITDA to be earnings before interest, taxes, depreciation and
amortization. We believe that EBITDA is a meaningful measure of
performance as it is 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 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 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' equity 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 to be net cash provided by operating activities
less capital expenditures net of proceeds from the sale of property, plant
and equipment. 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.
AAM 2Q-2015 Earnings Press Release:
http://hugin.info/143751/R/1942703/702924.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1942703]
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Datum: 31.07.2015 - 14:00 Uhr
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contact information:
Town:
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