American Axle & Manufacturing has reported full-year net income of US$367.7m, compared to the previous year of US$142.8m, while fourth quarter figures were US$319.9m.

AAM's net income in the fourth quarter included the favourable impact of a US$337.5m benefit related to the reversal of its valuation allowance against net federal deferred tax assets for entities in the US. This compared to net income of US$31.1m or US$0.41 per share in the fourth quarter of 2011.

"2012 was an eventful year for AAM, characterised by substantial growth and diversification due to a high level of global launch activity," said AAM president and CEO, David Dauch.

"We made great strides in executing our diversification initiatives while strengthening our global footprint through our expanding customer and product base. Financial performance in 2012 was characterised by both successes and challenges.

"In the second half of 2012, we experienced operational challenges and lower profitability, principally associated with an increased level of launch activity. We are taking necessary actions to correct these performance issues."

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Detroit, Michigan, February 8, 2013-- American Axle & Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the NYSE, today reported its financial results for the fourth quarter and full year 2012.  

Fourth Quarter 2012 Results

  • Fourth quarter 2012 sales of $736.7 million, up 21.6% on a year-over-year basis 

  • Non-GM sales grew by 16.6% on a year-over-year basis to $204.1 million 

  • Gross profit of $84.0 million, or 11.4% of sales  

  • Operating income of $18.6 million, or 2.5% of sales 

  • Net income of $319.9 million, or $4.21 per share, which includes the favorable impact of a $337.5 million benefit related to the reversal of our valuation allowance against our net federal deferred tax assets for entities in the United States  

  • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization excluding the impact of curtailments, asset impairments, 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) of $64.5 million or approximately 9% of sales 

  • AAM's quarterly results reflect the impact of $9.7 million (or $0.13 per share) of debt refinancing and redemption costs and $6.2 million (or $0.08 per share) of restructuring costs related to the closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility 

Full Year 2012 Results  

  • Full year 2012 sales of $2.93 billion, up 13.4% on a year-over-year basis 

  • Non-GM sales grew 11.6% on a year-over-year basis to $792.6 million 

  • Gross profit of $399.7 million, or 13.6% of sales  

  • Operating income of $156.4 million, or 5.3% of sales 

  • Net income of $367.7  million, or $4.87 per share 

  • Adjusted EBITDA of $346.7 million, or approximately 12% of sales 

  • AAM's full year results reflect the impact of $19.8 million (or $0.26 per share) of debt refinancing and redemption costs and $40.6 million (or $0.54 per share) of restructuring costs related to the closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility 

AAM's net income in the fourth quarter of 2012 was $319.9 million, or $4.21 per share, which includes the favorable impact of a $337.5 million benefit related to the reversal of our valuation allowance against our net federal deferred tax assets for entities in the United States.  This compares to net income of $31.1 million, or $0.41 per share, in the fourth quarter of 2011.

In the fourth quarter of 2012, AAM's results reflect the impact of $9.7 million (or $0.13 per share) of debt refinancing and redemption costs and $6.2 million (or $0.08 per share) of restructuring costs related to the closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility.  

In the fourth quarter of 2011, AAM's results reflect the impact of $4.8 million (or $0.06 per share) of special charges and restructuring costs primarily related to the closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility.

For the full year 2012, AAM's net income was $367.7 million, or $4.87 per share.  This compares to net income of $142.8 million, or $1.89 per share in 2011.  

On a full year basis in 2012, AAM incurred $19.8 million (or $0.26 per share) of debt refinancing and redemption costs and $40.6 million (or $0.54 per share) of restructuring costs related to the closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility.  

On a full year basis in 2011, AAM incurred $15.0 million (or $0.20 per share) of special charges, asset impairments and  restructuring costs primarily related to the planned closure of our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility.  Also included in 2011 were special charges of $3.1 million related to debt redemption and refinancing costs and a $1.6 million asset impairment recorded by our e-AAM joint venture related to the long-term supply agreement with Saab Automobile AB.

"2012 was an eventful year for AAM, characterized by substantial growth and diversification due to a high level of global launch activity.  We made great strides in executing our diversification initiatives while strengthening our global footprint through our expanding customer and product base," said AAM's President and Chief Executive Officer, David C. Dauch.  "Financial performance in 2012 was characterized by both successes and challenges.  In the second half of 2012, we experienced operational challenges and lower profitability, principally associated with an increased level of launch activity. We are taking necessary actions to correct these performance issues. As we move forward we do so with a disciplined and forward-looking approach, reaffirming our commitment to delivering quality, technology leadership and operational excellence."

Net sales in the fourth quarter of 2012 increased approximately 21.6% to $736.7 million as compared to $605.6 million in the fourth quarter of 2011.  Non-GM sales grew 16.6% on a year-over-year basis to $204.1 million in the fourth quarter of 2012 as compared to $175.0 million in the fourth 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 fourth quarter of 2012, AAM's content-per-vehicle was $1,514 as compared to $1,498 in the fourth quarter of 2011.  For the full year 2012, AAM's content-per-vehicle was $1,473 as compared to $1,487 in 2011.

Net sales for the full year 2012 increased by 13.4% to $2.9 billion as compared to $2.6 billion in 2011.  Non-GM sales grew 11.6% on a year-over-year basis to $792.6 million in 2012 as compared to $710.0 million in 2011.

AAM's gross profit in the fourth quarter of 2012 was $84.0 million or 11.4% of sales.  For the full year 2012, AAM's gross profit was $399.7 million, or 13.6% of sales.  

AAM defines Adjusted EBITDA to be earnings before interest, taxes, depreciation and amortization excluding the impact of curtailments, asset impairments, 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 fourth quarter of 2012, AAM's Adjusted EBITDA was $64.5 million or 8.8% of sales. For the full year 2012, AAM's Adjusted EBITDA was $346.7 million or 11.8% of sales.  

AAM's SG&A spending in the fourth quarter of 2012 was $65.4 million, or 8.9% of sales, as compared to $57.2 million, or 9.4% of sales, in the fourth quarter of 2011.  AAM's R&D spending in the fourth quarter of 2012 was $33.1 million as compared to $28.2 million in the fourth quarter of 2011.

AAM's SG&A spending for the full year 2012 was $243.3 million, or 8.3% of sales, as compared to $231.7 million, or 9.0% of sales, for the full year 2011.  AAM's R&D spending for the full year 2012 was $123.4 million as compared to $113.6 million in 2011.

In the fourth quarter of 2012, AAM's operating income was $18.6 million or 2.5% of sales. For the full year 2012, AAM's operating income was $156.4 million, or 5.3% of sales.    

In the fourth quarter of 2012, AAM's net income was $319.9 million or 43.4% of sales.  Diluted earnings per share (EPS) were $4.21 per share in the fourth quarter of 2012.   For the full year 2012, AAM's net income was $367.7 million or 12.5% of sales.  Diluted earnings per share (EPS) were $4.87 per share for the full year 2012.  These results include the favorable impact of a $337.5 million benefit related to the reversal of our valuation allowance against our net federal deferred tax assets for entities in the United States.

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 property, plant and equipment and the sale-leaseback of equipment.  

Net cash used in operating activities for the full year 2012 was $175.5 million.  Capital spending, net of proceeds from the sale of property, plant and equipment and the sale-leaseback of equipment, for the full year 2012 was $185.4 million.  Reflecting the impact of this activity, AAM's free cash flow was a use of $360.9 million for the full year 2012.  

AAM's free cash flow for the full year 2012 reflects the impact of $225.4 million of contributions to our defined benefit pension plans. On September 27, 2012, AAM and the Pension Benefit Guaranty Corporation entered into an agreement in connection with the closures of the Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility. As part of this agreement, in September 2012, we contributed $114.7 million in excess of our statutory minimums to our U.S. hourly pension plan which is included in the contributions described above.  AAM's free cash flow for the full year 2012 also reflects cash used for restructuring activities of $37.9 million.  

 

Original source: http://investor.aam.com/phoenix.zhtml?c=63076&p=irol-newsArticle&ID=1783309&highlight=