American Axle & Manufacturing Reports Third Quarter of 2011 Financial Results
(Thomson Reuters ONE) -
Announces 2012 - 2014 New Business Backlog of $1.1 Billion
Detroit, Michigan, October 28, 2011 -- American Axle & Manufacturing Holdings,
Inc. (AAM), which is traded as AXL on the NYSE, today reported its financial
results for the third quarter of 2011.
Third Quarter 2011 Results
· Third quarter 2011 sales of $647.6 million, up 5% from the third quarter of
2010
· Non-GM sales grew approximately 18% on a year-over-year basis to $173.9
million
· Net income of $24.8 million, or $0.33 per share
· AAM's quarterly results reflect the adverse impact of special charges, asset
impairments and other non-recurring operating costs of $11.9 million, or $0.15
per share, primarily related to the planned closure of our Detroit Manufacturing
Complex and Cheektowaga Manufacturing Facility
· Gross profit of $103.5 million, or 16.0% of sales
· Operating income of $44.5 million, or 6.9% of sales
· Adjusted EBITDA (earnings before interest, taxes, depreciation and
amortization, excluding the impact of special charges, asset impairments and
other non-recurring operating costs) of $93.2 million, or 14.4% of sales
· Free cash flow use of $221.2 million in the quarter (net cash used in
operating activities less capital expenditures net of proceeds from the sale of
equipment)
· AAM's free cash flow use in the quarter reflects a one-time use of cash of
approximately $190 million in the quarter related to the termination of
accelerated payment terms with General Motors Company (GM); as a result of this
change, effective July 1, 2011 AAM transitioned to GM's standard weekly payment
terms, which average approximately 50 days
AAM's results in the third quarter were net earnings of $24.8 million or $0.33
per share. This compares to net earnings of $38.8 million or $0.52 per share in
the third quarter of 2010.
In the third quarter of 2011, AAM's results include the adverse impact of
special charges, asset impairments and other non-recurring operating costs of
$11.9 million, or $0.15 per share, primarily related to the planned closure of
our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility. Also
included in the quarter's special charges was a $1.6 million asset impairment
recorded by our e-AAM joint venture related to the long-term supply agreement
with Saab Automobile AB.
"In the third quarter of 2011, AAM's reported profits were adversely impacted by
the decision to close our Detroit Manufacturing Complex and Cheektowaga
Manufacturing Facility. Excluding this and the accounting impact of other non-
recurring items, AAM continued a strong sales and profit performance in 2011
with solid third quarter financial results," said AAM's Co-Founder, Chairman of
the Board and Chief Executive Officer, Richard E. Dauch. "AAM's sustained strong
profit performance over the past two years is enabling us to accelerate the
investment in advanced product, process and systems technology necessary to
expand and diversify our customer base, product portfolio and served markets. As
a result, we are on track to grow our annual sales to exceed $3 billion by 2013
while significantly improving our business diversification and balance sheet
strength."
Net sales in the third quarter of 2011 increased approximately 5% to $647.6
million as compared to $618.2 million in the third quarter of 2010. Non-GM sales
in the third quarter of 2011 increased approximately 18% on a year-over-year
basis to $173.9 million, or 27% of total sales.
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 2011, AAM's content-per-vehicle increased to $1,466 as compared
to $1,458 in the third quarter of 2010.
AAM's net sales of approximately $2.0 billion in the first three quarters of
2011 increased by $279.7 million, or 16.5%, as compared to $1.7 billion in the
first three quarters of 2010. Non-GM sales for the year-to-date period of $535.0
million grew by approximately 32% on a year-over-year basis as compared to the
first three quarters of 2010.
AAM's gross profit in the third quarter of 2011 was $103.5 million, or 16.0% of
sales. In the first three quarters of 2011, AAM's gross profit was $349.4
million, or 17.7% of sales, as compared to $300.1 million for the first three
quarters of 2010.
AAM's operating income in the third quarter of 2011 was $44.5 million or 6.9% of
sales. In the first three quarters of 2011, AAM's operating income was $174.9
million, or 8.8% of sales, as compared to $153.1 million for the first three
quarters of 2010.
AAM's SG&A spending in the third quarter of 2011 was $59.0 million as compared
to $53.2 million in the third quarter of 2010. AAM's R&D spending in the quarter
increased by $10.6 million on a year-over-year basis to $31.8 million as
compared to $21.2 million in the third quarter of 2010.
In the first three quarters of 2011, AAM's SG&A spending was $174.5 million as
compared to $147.0 million in the first three quarters of 2010. AAM's R&D
spending for the first three quarters of 2011 increased by $26.5 million on a
year-over-year basis to $85.4 million as compared to $58.9 million in the first
three quarters of 2010.
AAM defines Adjusted EBITDA to be earnings before interest, taxes, depreciation
and amortization, excluding the impact of special charges, asset impairments and
other non-recurring operating costs, including debt refinancing costs and
expenses related to the closure of the Detroit Manufacturing Complex and
Cheektowaga Manufacturing Facility. AAM's Adjusted EBITDA in the third quarter
of 2011 was $93.2 million, or 14.4% of sales.
In the first three quarters of 2011, AAM's Adjusted EBITDA was $295.7 million,
or 14.9% 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 first three quarters of
2011 was a use of $65.4 million. Capital spending, net of proceeds from the sale
of equipment for the first three quarters of 2011 was $103.1 million. Reflecting
the impact of this activity, AAM's free cash flow was a use of $168.5 million in
the first three quarters of 2011.
AAM's free cash flow in 2011 reflects a one-time use of cash in the third
quarter of approximately $190 million related to the termination of accelerated
payment terms with GM. As a result of this change, effective July 1, 2011 AAM
transitioned to GM's standard weekly payment terms, which average approximately
50 days.
In the first three quarters of 2010, AAM generated $133.0 million of positive
free cash flow.
As of September 30, 2011, AAM's total available liquidity was approximately $400
million, consisting of available cash and borrowing capacity on AAM's global
credit facilities.
2012 - 2014 New Business Backlog
AAM's three-year backlog of new business launching from 2012 through 2014 has
grown to $1.1 billion in future annual sales. AAM's new business backlog
launching from 2012 - 2014 is more than 15% higher than the previous three-year
backlog for 2011 - 2013.
AAM's success in building the new business backlog reflects our efforts to
diversify the business by increasing AAM's exposure to global growth markets,
advancing and innovating AAM's product portfolio, and growing AAM's customer
base.
Highlights of AAM's $1.1 billion new business backlog launching from 2012 -
2014 include the following:
· Continued customer diversification: 75% of the programs launching from 2012 -
2014 are non-GM programs. This includes new and expanded awards from multiple
global premium vehicle manufacturers, including: Chrysler Group LLC and the Fiat
family of global vehicle platforms; Daimler Truck, Mercedes Benz, Mack Truck,
Volvo Powertrain Group, Navistar, Mahindra Navistar Automotives Limited, Tata
Motors, Jaguar/Land Rover, Volkswagen AG, Audi AG, Scania AB and others. AAM's
new business backlog for 2012 - 2014 supports AAM's target of growing non-GM
sales to 40% of total sales by 2013 and 50% of total sales by 2015.
· Expansion of product portfolio: Approximately two-thirds of AAM's new business
backlog launching from 2012 - 2014 is for passenger car, crossover vehicle and
commercial vehicle programs. This is significantly improving the balance of
AAM's future revenue streams.
· Growth in global growth markets: Over 70% of AAM's $1.1 billion new business
backlog for 2012 - 2014 is for programs sourced outside of North America. These
awards support AAM's expansion in the fast-growing markets of Poland, Brazil,
China, India and Thailand.
A conference call to review AAM's third 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 October 28, 2011 until 5:00
p.m. ET November 4, 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 16416856.
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; reduced purchases of our products by
GM, Chrysler or other customers; reduced demand for our customers' products
(particularly light trucks and SUVs produced by GM and Chrysler); 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; 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 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 political stability, taxes and other
law changes, potential disruption of production and supply, and currency rate
fluctuations); liabilities arising from warranty claims, product recalls,
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 and 10Q filings.
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 Nine months ended
September 30, September 30,
------------------------------------------- -------------------------------------
2011 2010 2011 2010
--------------------- -------------------- ----------------- -------------------
(In millions, except per share data) (In millions, except per share data)
$
Net sales $ 647.6 $ 618.2 1,979.4 $ 1,699.7
Cost of
goods sold 544.1 504.3 1,630.0 1,399.6
--------------------- -------------------- ----------------- -------------------
Gross
profit 103.5 113.9 349.4 300.1
Selling, general
and
administrative
expenses 59.0 53.2 174.5 147.0
--------------------- -------------------- ----------------- -------------------
Operating
income 44.5 60.7 174.9 153.1
Interest
expense (19.7) (22.1) (61.5) (67.4)
Investment
income 0.3 0.4 0.9 1.4
Debt refinancing
and redemption
costs - - (3.1) -
Other income
(expense),
net (0.2) 0.5 0.1 (1.7)
--------------------- -------------------- ----------------- -------------------
Income before
income taxes 24.9 39.5 111.3 85.4
Income tax
expense 2.3 0.8 4.2 5.2
--------------------- -------------------- ----------------- -------------------
Net income 22.6 38.7 107.1 80.2
Net loss
attributable to
noncontrolling
interests 2.2 0.1 4.6 0.3
--------------------- -------------------- ----------------- -------------------
Net income
attributable $
to AAM $ 24.8 $ 38.8 111.7 $ 80.5
--------------------- -------------------- ----------------- -------------------
Diluted
earnings per $
share $ 0.33 $ 0.52 1.48 $ 1.08
--------------------- -------------------- ----------------- -------------------
Diluted
shares
outstanding 75.4 74.3 75.4 74.5
--------------------- -------------------- ----------------- -------------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
--------------------------------------------------------------------------------
September 30, December 31,
2011 2010
---------------------------------------------
(In millions)
ASSETS
Current assets
Cash and cash equivalents $ 114.4 $ 244.6
Accounts receivable, net 384.8 146.6
Inventories, net 157.7 130.3
Prepaid expenses and other 83.1 80.6
---------------------------------------------
Total current assets 740.0 602.1
Property, plant and equipment, net 942.6 936.3
GM postretirement cost sharing
asset 240.6 244.4
Goodwill 156.0 155.8
Other assets and deferred charges 153.6 176.1
---------------------------------------------
Total assets $ 2,232.8 $ 2,114.7
---------------------------------------------
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities
Accounts payable $ 363.6 $ 283.6
Accrued expenses and other 250.8 285.5
---------------------------------------------
Total current liabilities 614.4 569.1
Long-term debt 1,050.6 1,010.0
Deferred revenue 92.8 116.0
Postretirement benefits and other
long-term liabilities 848.3 887.7
---------------------------------------------
Total liabilities 2,606.1 2,582.8
Stockholders' deficit (373.3) (468.1)
---------------------------------------------
Total liabilities and
stockholders' deficit $ 2,232.8 $ 2,114.7
---------------------------------------------
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
--------------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
--------------------------------- --------------------------
2011 2010 2011 2010
------------------ -------------- ------ -------------
(In millions) (In millions)
Operating
activities
$
Net income $ 22.6 $ 38.7 107.1 $ 80.2
Depreciation
and amortization 35.0 33.7 103.8 98.1
Other (239.5) (43.8) (276.3) 15.2
------------------ ------------- ------------ ------------
Net cash flow
provided by (used
in)
operating
activities (181.9) 28.6 (65.4) 193.5
Purchases of
property, plant &
equipment (39.4) (24.8) (111.0) (61.7)
Purchase buyouts of
leased equipment - (0.4) - (7.8)
Proceeds from sales
of equipment 0.1 - 7.9 1.2
Redemption of
short-term
investments - - - 1.6
------------------ ------------- ------------ ------------
Net cash flow used
in investing
activities (39.3) (25.2) (103.1) (66.7)
Net increase
(decrease) in long-
term
debt 88.0 (3.3) 40.6 (60.8)
Debt issuance costs (0.4) - (5.7) (2.2)
Repurchase of
treasury stock - - (0.1) (1.3)
Employee stock
option exercises - - 4.6 -
------------------ ------------- ------------ ------------
Net cash flow
provided by (used
in)
financing
activities 87.6 (3.3) 39.4 (64.3)
Effect of exchange
rate changes on
cash (2.3) 1.4 (1.1) (0.4)
------------------ ------------- ------------ ------------
Net increase
(decrease) in cash
and cash
equivalents (135.9) 1.5 (130.2) 62.1
Cash and cash
equivalents at
beginning
of period 250.3 238.7 244.6 178.1
------------------ ------------- ------------ ------------
Cash and cash
equivalents at end $
of period $ 114.4 $ 240.2 114.4 $ 240.2
------------------ ------------- ------------ ------------
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,
-------------------- -------------------------------------------
2011 2010 2011 2010
--------- ---------- ---------------- -------------------------
(In millions) (In millions)
Net income
attributable to $ $
AAM 24.8 38.8 $ 111.7 $ 80.5
Interest expense 19.7 22.1 61.5 67.4
Income tax
expense 2.3 0.8 4.2 5.2
Depreciation and
amortization 35.0 33.7 103.8 98.1
--------- ---------- ---------------- -------------------------
$ $
EBITDA 81.8 95.4 $ 281.2 $ 251.2
Debt refinancing
and redemption
costs - - 3.1 -
Other special
charges, asset
impairments
and other non-
recurring
operating
costs((e)) 11.4 - 11.4 -
--------- ---------- ---------------- -------------------------
$ $
ADJUSTED EBITDA 93.2 95.4 $ 295.7 $ 251.2
--------- ---------- ---------------- -------------------------
Net debt((b)) to capital
September 30, December 31,
2011 2010
----------------------- ---------------------------------
(In millions, except percentages)
$
Total debt 1,050.6 $ 1,010.0
Less: cash and cash
equivalents 114.4 244.6
----------------------- ---------------------------------
Net debt at end of
period 936.2 765.4
Stockholders' deficit (373.3) (468.1)
----------------------- ---------------------------------
Total invested capital $
at end of period 562.9 $ 297.3
----------------------- ---------------------------------
Net debt to
capital((c)) 166.3% 257.5%
----------------------- ---------------------------------
Net Operating Cash Flow and Free Cash Flow((d))
Three months ended Nine months ended
September 30, September 30,
------------------------- ---------------------------------
2011 2010 2011 2010
---------- -------------- --------------- -----------------
(In millions) (In millions)
Net cash provided by
(used in) operating $
activities (181.9) $ 28.6 $ (65.4) $ 193.5
Less: Purchases of
property, plant &
equipment,
net of proceeds from
sale of equipment (39.3) (24.8) (103.1) (60.5)
---------- -------------- --------------- -----------------
$
Free cash flow (221.2) $ 3.8 $(168.5) $ 133.0
---------- -------------- --------------- -----------------
--------------------------------------------------------------------------------
((a)) We define EBITDA to be earnings before interest, taxes, depreciation and
amortization. Adjusted EBITDA is defined as EBITDA excluding the impact of debt
refinancing and redemption costs and special charges and restructuring costs
related to the closure of the Detroit Manufacturing Complex and Cheektowaga
Manufacturing Facility. 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.
((e)) Special charges, asset impairments and other non-recurring operating
costs include $0.5 million related to the noncontrolling interests portion of
the $1.6 million asset impairments recorded by e-AAM.
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#1558200]
Unternehmensinformation / Kurzprofil:
Datum: 28.10.2011 - 14:01 Uhr
Sprache: Deutsch
News-ID 81498
Anzahl Zeichen: 36901
contact information:
Town:
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Kategorie:
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