AAM Reports Second Quarter 2015 Financial Results
Achieves record quarterly sales of $1.0 billion, driven by 15% year-over-year increase in non-GM sales
Detroit, Michigan, Jul 31, 2015 - (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 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 +1-313-758-4814 chris.son@aam.com
Vitalie Stelea Manager, Investor Relations +1-313-758-4635 vitalie.stelea@aam.com
Or visit the AAM website at www.aam.com.
AAM 2Q-2015 Earnings Press Release: http://hugin.info/143751/R/1942703/702924.pdf
###
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients. The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: American Axle & Manufacturing Holdings, Inc via Globenewswire
Source: American Axle & Manufacturing Holdings, Inc.
Copyright ©2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
Latest Release
Panasonic Energy and Mazda Enter Agreement Towards Supply of Cylindrical Automotive Lithium-ion Batteries Mar 29, 2024 17:42 JST
| Eisai to Divest Rights for Merislon and Myonal in Japan to Kaken Pharmaceutical Mar 29, 2024 15:51 JST
| Eisai's Brain Health Self-Check Tool "NouKNOW" is Certified as "ME-BYO BRAND" by Kanagawa Prefecture Mar 29, 2024 15:19 JST
| Eisai: Discovery Research on Dual Orexin Receptor Antagonist Lemborexant Honored with PSJ Award for Drug Research and Development 2024 Mar 29, 2024 14:32 JST
| Fujitsu Selected as CDP Supplier Engagement Leader Mar 29, 2024 10:28 JST
| Mazda Production and Sales Results for February 2024 Mar 29, 2024 10:00 JST
| Mitsubishi Shipbuilding Receives Order from the University of Tokyo for "MiPoLin" Power Prediction and Lines Selection System Mar 28, 2024 16:45 JST
| Mitsubishi Logisnext Completes Demonstration of Automated Truck Loading, Leading to Start of Actual Operations in Japan Mar 28, 2024 13:52 JST
| Toyota Releases Sales, Production, and Export Results for February 2024 Mar 28, 2024 13:35 JST
| TANAKA to Install 500 kW Fuel Cell System to Promote the Use of Hydrogen Energy at Production Plants Mar 28, 2024 03:00 JST
| PEVE to change name to TOYOTA BATTERY Co., Ltd. and produce batteries for a wide range of electric vehicles Mar 27, 2024 15:13 JST
| NTT and Olympus Begin World's First Joint Demonstration Experiment of Cloud Endoscopy System Mar 27, 2024 15:00 JST
| TANAKA Holdings Announces Green Loan Financing for Construction of New Head Office Building Mar 27, 2024 03:00 JST
| JFE Steel and Hitachi Jointly Started Providing Solutions for the Steel Industry Mar 26, 2024 19:04 JST
| La Banque Postale and JCB join forces to elevate payments experience for travellers in France Mar 26, 2024 15:00 JST
| Fujitsu Tech Leverages AI and Underwater Drone Data for 'Ocean Digital Twin' Mar 26, 2024 10:24 JST
| NEC develops marketing strategy planning & effectiveness simulation technology using generative AI Mar 25, 2024 10:08 JST
| Toyota to Open New Tokyo Head Office in Shinagawa in FY2030 Mar 22, 2024 16:15 JST
| Hitachi Selected as CDP Supplier Engagement Leader for the Third Consecutive Year Mar 22, 2024 16:04 JST
| Mitsubishi Motors Celebrates Production of 100,000th fully electric minivehicle Mar 22, 2024 15:34 JST
|
More Latest Release >>
|