US: AAM reports $1.2bn loss for '08
American Axle & Manufacturing (AAM) has reported a net loss of $112.1 million or $2.17 per share in the fourth quarter. This compares to a net loss of $26.8 million, or $0.52 per share, in the fourth quarter of 2007.
AAM's net loss for the full year 2008 was $1.2 billion, or $23.73 per share. This compares to net earnings of $37.0 million, or $0.70 per share, in 2007.
AAM's results in the fourth quarter of 2008 includes a tax expense provision of $69.5 million, primary relating to non-cash charges to establish and adjust valuation allowances on AAM's U.S. and U.K. deferred tax assets. This compares to a tax benefit of $34.5 million in the fourth quarter of 2007.
"The year 2008 was a turbulent and transformational year for AAM," said AAM Co-Founder, Chairman of the Board & Chief Executive Officer Richard E. Dauch.
"The U.S. automotive industry has been pushed to the verge of collapse due to numerous adverse market, economic and competitive forces. As a result, 2008 proved to be a brutally difficult and demanding year for the entire domestic automotive industry. AAM accepted these challenges head-on and is making the hard, necessary and structural changes to return to profitability.
"In 2008, we achieved historic gains in the market cost competitiveness and operating flexibility of AAM's U.S. manufacturing base. We developed and implemented a comprehensive restructuring, resizing and profit recovery plan designed to increase capacity utilization and rebuild AAM's balance sheet strength. We continued to invest in AAM's advanced product, process and systems technology and expanded AAM's global manufacturing and sourcing footprint. We provided exceptional value to our customers through AAM's outstanding daily performance on product development, quality, reliability, warranty, delivery and launch support. We grew AAM's new business backlog to $1.4 billion by enhancing customer relationships around the world. These actions position AAM to successfully manage through this difficult period and emerge as stronger and more balanced company for the future."