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| Friday, 27 July 2012, 20:30 HKT | |
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Source: American Axle & Manufacturing Holdings, Inc. | |
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| New Business Backlog Grows to $1.2 Billion for Programs Launching from 2012 - 2014 |
Detroit, Michigan, July 27, 2012 - (ACN Newswire) - American Axle & Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the NYSE, today reported its financial results for the second quarter 2012.
Second Quarter 2012 Results
- Second quarter 2012 sales of $739.8 million, up 7.8% on a year-over-year basis
- Non-GM sales grew 8.5% on a year-over-year basis to $198.2 million
- Free cash flow (net cash provided by operating activities less capital expenditures net of proceeds from the sale of equipment) of $48.0 million
- Net income of $4.7 million, or $0.06 per share
- AAM's quarterly results reflect the impact of special charges and restructuring costs of $36.5 million (or $0.49 per share), related to the closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility
AAM's net earnings in the second quarter of 2012 were $4.7 million, or $0.06 per share. This compares to net earnings of $49.2 million or $0.65 per share in the second quarter of 2011.
In the second quarter of 2012, AAM's results reflect the impact of special charges and restructuring costs of $36.5 million (or $0.49 per share), related to the closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility. These special charges included $28.1 million of expense for a contingency related to a claim made by the International UAW for pension and postretirement benefits.
"AAM's financial results for the second quarter of 2012 were highlighted by strong sales growth driven by solid profitability and positive free cash flow," said AAM's Co-Founder, Chairman of the Board and Chief Executive Officer, Richard E. Dauch. "AAM is excited about the opportunity to make additional progress on our profitable growth and business diversification initiatives as we continue to support the launch of many new products, processes and systems on a global basis in the near-term. AAM's advanced driveline technologies and high-quality, operationally-flexible global manufacturing, engineering and sourcing footprint are the key factors driving our success in growing AAM's new business backlog, which now stands at approximately $1.2 billion for programs launching from 2012 through 2014."
Net sales in the second quarter of 2012 increased approximately 8% to $739.8 million as compared to $686.2 million in the second quarter of 2011. Non-GM sales were up 8.5% to $198.2 million in the second quarter of 2012 as compared to $182.7 million in the second quarter of 2011.
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 2012, AAM's content-per-vehicle was $1,439 as compared to $1,504 in the second quarter of 2011 and $1,475 in the first quarter of 2012. A reduction in deferred revenue recognition related to the 2008 AAM-GM agreement and lower four-wheel drive penetration in our customers' North American light truck and SUV programs were the principal factors driving the lower content-per-vehicle in the second quarter of 2012 as compared to the second quarter of 2011 and first quarter of 2012.
AAM's net sales in the first half of 2012 increased approximately 12% to $1.49 billion as compared to $1.33 billion in the first half of 2011. Non-GM sales in the first half of 2012 increased approximately 8.5% on a year-over-year basis to $391.8 million or 26.3% of AAM's total sales.
AAM's gross profit in the second quarter of 2012 was $85.8 million or 11.6% of sales. For the second quarter of 2011, AAM's gross profit was $130.5 million, or 19.0% of sales.
AAM's gross profit for the first half of 2012 was $225.0 million compared to $245.9 million in the first half of 2011. Gross margin was 15.1% in the first half of 2012 as compared to 18.5% in the first half of 2011.
AAM's SG&A spending in the second quarter of 2012 was $55.5 million, or 7.5% of sales, as compared to $58.8 million, or 8.6% of sales, in the second quarter of 2011. AAM's R&D spending in the second quarter of 2012 was $28.8 million as compared to $27.3 million in the second quarter of 2011.
In the first half of 2012, AAM's SG&A spending was $117.3 million as compared to $115.5 million in the first half of 2011. AAM's R&D spending increased approximately $5.3 million in the first half of 2012 on a year-over-year basis to $58.9 million as compared to $53.6 million in the first half of 2011.
In the second quarter of 2012, AAM's operating income was $30.3 million or 4.1% of sales.
AAM's operating income in the first half of 2012 was $107.7 million as compared to $130.4 million in the first half of 2011. Operating margin was 7.2% in the first half of 2012 as compared to 9.8% in the first half of 2011.
In the second quarter of 2012, AAM's net income was $4.7 million or 0.6% of sales. Diluted earnings per share were $0.06 per share in the second quarter of 2012. For the second quarter 2011, AAM's net income was $49.2 million or 7.2% of sales. Diluted earnings per share were $0.65 per share for the second quarter 2011.
AAM defines Adjusted EBITDA to be earnings before interest, taxes, depreciation and amortization excluding the impact of curtailment gains or losses, 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. In the second quarter of 2012, AAM's Adjusted EBITDA was $103.3 million or 14% of sales. For the second quarter of 2011, AAM's Adjusted EBITDA was $107.5 million or 15.7% 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. For purposes of calculating free cash flow, AAM excludes the impact of purchase buyouts of leased equipment, if any.
Net cash provided by operating activities for the second quarter 2012 was $96.1 million. Capital spending, net of proceeds from the sale of equipment, for the second quarter 2012 was $48.1 million. Reflecting the impact of this activity, AAM generated free cash flow of $48.0 million for the second quarter 2012.
AAM's free cash flow in the second quarter 2012 reflects the impact of approximately $12.3 million of cash payments for special charges and restructuring actions (principally related to the closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility).
New Business Backlog:
AAM's three-year backlog of new business launching from 2012 through 2014 has grown to $1.2 billion in future annual sales. The growth in new business backlog reflects the impact of expanded awards from multiple global vehicle manufacturers for programs in North America and the growth markets of Brazil and Thailand.
A conference call to review AAM's second quarter 2012 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 +1-877-278-1452 from the United States or +1-973-200-3383 from outside the United States. A replay will be available from 5:00 p.m. ET on July 27, 2012 until 5:00 p.m. ET August 3, 2012 by dialing +1-855-859-2056 from the United States or +1-404-537-3406 from outside the United States. When prompted, callers should enter conference reservation number 95285667.
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.
For more information...
Christopher M. Son
Director, Investor Relations,
Corporate Communications & Marketing
+1-313-758-4814
chris.son@aam.com
David Tworek
Manager, Communications
+1-313-758-4883
david.tworek@aam.com
Or visit the AAM website at www.aam.com .
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
July 27, 2012
Topic: Earnings
http://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2013 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
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