American Axle & Manufacturing Reports Earnings of $0.65 in the Second Quarter of 2011
(Thomson Reuters ONE) -
Raises Full-Year 2011 Sales and Earnings Outlook
Detroit, Michigan, July 29, 2011 -- American Axle & Manufacturing Holdings, Inc.
(AAM), which is traded as AXL on the NYSE, today reported its financial results
for the second quarter of 2011.
Second Quarter 2011 Results
· Second quarter 2011 sales of $686.2 million, up 23% from the second quarter of
2010
· Non-GM sales in the quarter grew approximately 35% on a year-over-year basis
to $182.7 million
· Gross profit of $130.5 million, or 19.0% of sales
· Operating income of $71.7 million, or 10.4% of sales
· Net income of $49.2 million, or $0.65 per share
· EBITDA (earnings before interest, taxes, depreciation and amortization) of
$104.4 million, or 15.2% of sales
· Net cash provided by operating activities of $115.5 million
· Free cash flow (net cash provided by operating activities less capital
expenditures net of proceeds from the sale of equipment) of $81.7 million
AAM's results in the second quarter were net earnings of $49.2 million or $0.65
per share. This compares to net earnings of $25.4 million or $0.34 per share in
the second quarter of 2010.
"AAM is pleased to report strong sales, earnings and cash flow results in the
second quarter of 2011," said AAM's Co-Founder, Chairman of the Board and Chief
Executive Officer, Richard E. Dauch. "AAM continues to benefit from increased
production volumes across many of our major product programs and sustained
improvements in capacity utilization and fixed cost burdens. As a result of
these favorable trends, we are again increasing AAM's full year 2011 sales and
earnings outlook, with sales now expected to range from $2.5 billion to $2.6
billion."
Net sales in the second quarter of 2011 increased approximately 23% to $686.2
million as compared to $559.6 million in the second quarter of 2010. On a
sequential basis, net sales in the second quarter of 2011 increased
approximately 6% as compared to the first quarter of 2011.
Customer production volumes for the major North American light truck and SUV
programs that AAM currently supports for GM, Chrysler and Nissan were up
approximately 15% in the second quarter of 2011 as compared to the second
quarter of 2010.
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 2011, AAM's content-per-vehicle increased approximately 7% to
$1,504 as compared to $1,408 in the second quarter of 2010.
AAM's net sales of $1.33 billion in the first half of 2011 increased
approximately 23%, as compared to $1.08 billion in the first half of 2010.
Non-GM sales in the first half of 2011 increased approximately 39% on a year-
over-year basis to $361.1 million or 27% of AAM's total sales, up from 24% of
total sales in the first half of 2010.
AAM's gross profit in the second quarter of 2011 increased $31.6 million on a
year-over-year basis to $130.5 million as compared to $98.9 million in the
second quarter of 2010. Gross margin improved to 19.0% in the quarter as
compared to 17.7% in the second quarter of 2010. On a sequential basis, gross
profit in the quarter increased approximately 13% as compared to the first
quarter of 2011.
AAM's gross profit of $245.9 million in the first half of 2011 increased by
nearly $60 million, or 32%, as compared to $186.2 million in the first half of
2010. Gross margin improved to 18.5% in the first half of 2011 as compared to
17.2% in the first half of 2010.
AAM's SG&A spending in the second quarter of 2011 was $58.8 million as compared
to $48.5 million in the second quarter of 2010. AAM's R&D spending (which in
2011 includes costs related to the e-AAM joint venture for the development of
electric all-wheel-drive and hybrid driveline applications for passenger cars
and crossover vehicles) increased by approximately $8.7 million in the second
quarter of 2011 on a year-over-year basis to $27.3 million as compared to $18.6
million in the second quarter of 2010.
In the first half of 2011, AAM's SG&A spending was $115.5 million as compared to
$93.8 million in the first half of 2010. AAM's R&D spending increased
approximately $16 million in the first half of 2011 on a year-over-year basis to
$53.6 million as compared to $37.7 million in the first half of 2010.
AAM's operating income in the second quarter of 2011 increased $21.3 million on
a year-over-year basis to $71.7 million as compared to $50.4 million in the
second quarter of 2010. Operating margin improved to 10.4% in the quarter as
compared to 9% in the second quarter of 2010. On a sequential basis, operating
income in the quarter increased approximately 22% as compared to the first
quarter of 2011.
AAM's operating income in the first half of 2011 increased by approximately $40
million, or 41% to $130.4 million, as compared to $92.4 million in the first
half of 2010. Operating margin improved to 9.8% in the first half of 2011 as
compared to 8.5% in the first half of 2010.
AAM defines EBITDA to be earnings before interest, taxes, depreciation and
amortization. AAM's EBITDA in the second quarter of 2011 was $104.4 million, or
15.2% of sales. In the first half of 2011, AAM's EBITDA was $199.4 million, or
15.0% 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 sale of equipment.
Net cash provided by operating activities in the second quarter of 2011 was
$115.5 million. Capital spending, net of proceeds from the sale of equipment for
the second quarter of 2011 was $33.8 million. Reflecting the impact of this
activity, AAM generated $81.7 million of positive free cash flow in the second
quarter of 2011.
In the second quarter of 2010, AAM generated $68.1 million of positive free cash
flow.
As of June 30, 2011, AAM's total available liquidity was approximately $595
million, consisting of available cash and committed borrowing capacity on AAM's
amended and restated revolving credit facility.
AAM's Updated 2011 Outlook:
Based on updated customer production schedules and other pertinent information,
AAM is again raising its full year 2011 sales and earnings outlook, with sales
now expected to range from $2.5 billion to $2.6 billion. AAM's updated 2011
outlook is based on the anticipated launch schedule for AAM's new business
backlog, the continued recovery in market demand for full-size pickups and SUVs
and the assumption that the U.S. Seasonally Adjusted Annual Rate ("SAAR") of
light vehicle sales will approximate 13.0 million vehicle units in 2011.
AAM expects to be profitable and generate adjusted earnings before interest
expense, income taxes and depreciation and amortization (Adjusted EBITDA) in the
range of 14.5% - 15.0% of sales in 2011. For purposes of calculating Adjusted
EBITDA, AAM excludes the impact of special charges and restructuring costs,
including debt refinancing costs and expenses related to the closure of the
Detroit Manufacturing Complex.
In the first half of 2011, AAM incurred $3.1 million of debt refinancing and
redemption costs.
The Detroit Manufacturing Complex is expected to close on or after February
26, 2012, the expiration of AAM's current collective bargaining agreement with
the International UAW. AAM currently expects to incur approximately $15 million
- $20 million of expenses related to the closure of the Detroit Manufacturing
Complex beginning in the second half of 2011 and continuing through the first
half of 2012, including costs to relocate assets from the Detroit Manufacturing
Complex to other market competitive AAM facilities in the state of Michigan.
A conference call to review AAM's second quarter 2011 results 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 July 29, 2011 until 5:00 p.m.
ET August 5, 2011 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 81986956.
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 trucks, sport utility vehicles, passenger
cars and crossover utility vehicles. In addition to locations in the United
States (Indiana, Michigan, New York, Ohio, and Pennsylvania), AAM also has
offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg,
Mexico, Poland, South Korea, Sweden, Thailand and the United Kingdom.
Certain statements contained in this press release are "forward-looking
statements" and relate to the Company's plans, projections, strategies or future
performance. Such statements, made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, are based on our current
expectations, are inherently uncertain, are subject to risks and should be
viewed with caution. 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; our ability to comply with the
definitive terms and conditions of various commercial and financing arrangements
with General Motors Company (GM); reduced purchases of our products by GM,
Chrysler Group LLC (Chrysler) or other customers; reduced demand for our
customers' products (particularly light trucks and sport utility vehicles
("SUVs") produced by GM and Chrysler); availability of financing for working
capital, capital expenditures, research and development ("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; our ability to
achieve cost reductions through ongoing restructuring actions; our ability to
achieve the level of cost reductions required to sustain global cost
competitiveness; our ability, our suppliers' ability and our customers' ability
to avoid supply shortages as a result of recent events in Japan or otherwise;
our ability to maintain satisfactory labor relations and avoid future work
stoppages; our suppliers', our customers' and their suppliers' ability to
maintain satisfactory labor relations and avoid work stoppages; additional
restructuring actions that may occur; our ability to continue to implement
improvements in our U.S. labor cost structure; supply shortages or price
increases in raw materials, utilities or other operating supplies; our ability
to consummate and integrate acquisitions and joint ventures; 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; our ability to attract new customers and programs
for new products; 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 respond to changes in technology, increased competition
or pricing pressures; price volatility in, or reduced availability of, fuel;
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); risks inherent in our international operations
(including adverse changes in the political stability, taxes and other law
changes, potential disruption of production and supply, and currency rate
fluctuations); liabilities arising from warranty claims, product recall, product
liability and legal proceedings to which we are or may become a party; changes
in liabilities arising from pension and other postretirement benefit
obligations; risks of noncompliance with environmental 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. For additional discussion,
see "Risk factors" in our most recent 10K filing.
It is not possible to foresee or identify all such factors and we assume no
obligation to update any forward-looking statements or to disclose any
subsequent facts, events or circumstances that may affect their accuracy.
# # #
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 atwww.aam.com.
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
-------------------------------------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
--------------------------------------- --------------------------------------
2011 2010 2011 2010
------------------ -------------------- ------------------ -------------------
(In millions, except per share data) (In millions, except per share data)
Net sales $ $ 559.6 $ $ 1,081.5
686.2 1,331.8
Cost of
goods sold 555.7 460.7 1,085.9 895.3
------------------ -------------------- ------------------ -------------------
Gross
profit 130.5 98.9 245.9 186.2
Selling, general
and
administrative 58.8 48.5 115.5 93.8
expenses
------------------ -------------------- ------------------ -------------------
Operating
income 71.7 50.4 130.4 92.4
Interest
expense (20.5) (22.6) (41.8) (45.3)
Investment
income 0.3 0.6 0.6 1.0
Debt
refinancing and
redemption (3.1) - (3.1) -
costs
Other income
(expense), (0.7) (0.7) 0.3 (2.2)
net
------------------ -------------------- ------------------ -------------------
Income before
income taxes 47.7 27.7 86.4 45.9
Income tax
expense (0.2) 2.4 1.9 4.4
(benefit)
------------------ -------------------- ------------------ -------------------
Net income
47.9 25.3 84.5 41.5
Net loss
attributable to
noncontrolling 1.3 0.1 2.4 0.2
interests
------------------ -------------------- ------------------ -------------------
Net income $ $ $ $
attributable 49.2 25.4 86.9 41.7
to AAM
Diluted $ $ $ $
earnings per 0.65 0.34 1.15 0.56
share
Diluted
shares 75.4 74.5 75.4 74.5
outstanding
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
--------------------------------------------------------------------------------
June 30, December 31,
2011 2010
---------------------------------------------
(In millions)
ASSETS
Current assets
Cash and cash equivalents $ 250.3 $ 244.6
Accounts receivable, net 199.0 146.6
Inventories, net 148.5 130.3
Prepaid expenses and other 80.8 80.6
---------------------------------------------
Total current assets 678.6 602.1
Property, plant and equipment, net 960.4 936.3
GM postretirement cost sharing 240.5 244.4
asset
Goodwill 156.6 155.8
Other assets and deferred charges 159.3 176.1
---------------------------------------------
Total assets $ 2,195.4 $ 2,114.7
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities
Accounts payable $ 355.0 $ 283.6
Accrued expenses and other 273.5 285.5
---------------------------------------------
Total current liabilities 628.5 569.1
Long-term debt 964.6 1,010.0
Deferred revenue 97.7 116.0
Postretirement benefits and other 862.5 887.7
long-term liabilities
---------------------------------------------
Total liabilities 2,553.3 2,582.8
Stockholders' deficit (357.9) (468.1)
---------------------------------------------
Total liabilities and $ 2,195.4 $ 2,114.7
stockholders' deficit
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
----------------------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
--------------------------------- --------------------------------
2011 2010 2011 2010
---------------- ---------------- ---------------- ---------------
(In millions) (In millions)
Operating
activities
Net $ $ $ $
income 47.9 25.3 84.5 41.5
Depreciation
and 34.9 32.8 68.8 64.4
amortization
Other
32.7 27.8 (36.8) 59.0
---------------- ---------------- ---------------- ---------------
Net cash flow
provided by
operating 115.5 85.9 116.5 164.9
activities
Purchases of
property,
plant & (40.1) (18.1) (71.6) (36.9)
equipment
Purchase
buyouts of
leased - (3.4) - (7.4)
equipment
Proceeds
from sales 6.3 0.3 7.8 1.2
of equipment
Redemption
of short-
term - 0.2 - 1.6
investments
---------------- ---------------- ---------------- ---------------
Net cash
flow used in
investing (33.8) (21.0) (63.8) (41.5)
activities
Net decrease
in long-term (44.1) (2.0) (47.4) (57.5)
debt
Debt
issuance (5.3) - (5.3) (2.2)
costs
Repurchase
of treasury - (0.1) (0.1) (1.3)
stock
Employee
stock option - - 4.6 -
exercises
---------------- ---------------- ---------------- ---------------
Net cash
flow used in
financing (49.4) (2.1) (48.2) (61.0)
activities
Effect of
exchange
rate changes 0.6 (0.7) 1.2 (1.8)
on cash
---------------- ---------------- ---------------- ---------------
Net increase
in cash and
cash 32.9 62.1 5.7 60.6
equivalents
Cash and cash
equivalents at
beginning of 217.4 176.6 244.6 178.1
period
---------------- ---------------- ---------------- ---------------
Cash and
cash $ $
equivalents $ 250.3 238.7 $ 250.3 238.7
at end of
period
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 Six months ended
June 30, June 30,
-------------------------------------- --------------------------------------
2011 2010 2011 2010
------------------ ------------------- ------------------ -------------------
(In millions) (In millions)
Net income $ $ $ $
attributable 49.2 25.4 86.9 41.7
to AAM
Interest
expense 20.5 22.6 41.8 45.3
Income tax
expense (0.2) 2.4 1.9 4.4
(benefit)
Depreciation
and 34.9 32.8 68.8 64.4
amortization
------------------ ------------------- ------------------ -------------------
EBITDA $ $ $ $
104.4 83.2 199.4 155.8
Debt
refinancing
and 3.1 - 3.1 -
redemption
costs
------------------ ------------------- ------------------ -------------------
ADJUSTED $ $ $ $
EBITDA 107.5 83.2 202.5 155.8
Net debt((b)) to capital
June 30, December 31,
2011 2010
------------------ -------------------
(In millions, except percentages)
Total debt $ $
964.6 1,010.0
Less: cash
and cash 250.3 244.6
equivalents
------------------ -------------------
Net debt at
end of period 714.3 765.4
Stockholders'
deficit (357.9) (468.1)
------------------ -------------------
Total
invested $ $
capital at 356.4 297.3
end of period
Net debt to 200.4% 257.5%
capital((c))
Net Operating Cash Flow and Free Cash Flow((d))
Three months ended Six months ended
June 30, June 30,
-------------------------------------- --------------------------------------
2011 2010 2011 2010
------------------ ------------------- ------------------ -------------------
(In millions) (In millions)
Net cash
provided by $ $ $ $
operating 115.5 85.9 116.5 164.9
activities
Less: Purchases of
property, plant &
equipment, net of (33.8) (17.8) (63.8) (35.7)
proceeds from sale of
equipment
------------------ ------------------- ------------------ -------------------
Free cash $ $ $ $
flow 81.7 68.1 52.7 129.2
----------------------------------------------------------------------------------------------------
((a)) We define EBITDA to be earnings before interest, taxes, depreciation and amortization.
Adjusted EBITDA is defined as EBITDA excluding the impact of special charges and restructuring
costs, including debt refinancing and redemption costs and expenses related to the closure of the
Detroit Manufacturing Complex. We believe that EBITDA and adjusted EBITDA are meaningful measures
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 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 net operating cash flow as net cash provided by operating activities less purchases
of property and equipment net of proceeds from sales of assets. Free cash flow is defined as net
operating cash flow less dividends paid. We believe net operating cash flow and free cash flow are
meaningful measures as they are 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. Net operating cash flow is also a key metric used in our calculation of incentive
compensation. Other companies may calculate net operating cash flow and free cash flow differently.
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#1533678]
Unternehmensinformation / Kurzprofil:
Datum: 29.07.2011 - 13:32 Uhr
Sprache: Deutsch
News-ID 56842
Anzahl Zeichen: 35641
contact information:
Town:
Detroit, MI
Kategorie:
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