First Half Sales, Net Income and EPS at All-Time Highs

American Axle & Manufacturing Holdings, Inc. (NYSE: AXL - news) today reported record second quarter 2000 net income of $40.0 million, an increase of 19 percent over the $33.7 million reported for the second quarter of 1999. Earnings per share also increased 19% to 80 cents on a diluted basis, versus 67 cents per share during the same period the prior year.

Sales increased 2% to $819.7 million for the second quarter of 2000 as compared to $800.8 million in the second quarter of 1999. For the six months ended June 30, 2000, sales were $1.656 billion, representing an increase of $157 million, or 10%, from the $1.499 billion generated in the first six months of 1999.

Operating income improved 13 percent to $77.1 million, or 9.4% of sales in the quarter, as compared to $68.2 million or 8.5% of sales for the second quarter of 1999. For the six months ended June 30, 2000, operating income was $153.6 million, or 9.3% of sales, versus $126.2 million, or 8.4% of sales for the same period of 1999.

Net income for the first half of 2000 was $80.1 million, or 4.8% of sales, versus $62.7 million, or 4.2% of sales for the same period of 1999.

"We are proud to continue to deliver solid earnings performance," said American Axle & Manufacturing Chairman, CEO & President Richard E. Dauch. "Increased productivity and new higher-value-added products are helping to drive margin improvement. Also, the Guanajuato Gear & Axle plant in Mexico launched five months ahead of schedule. It is now producing both the 8.6 inch and the newly developed 11.5 inch rear axles which helped to increase operating margins."

Recent developments

On June 20, 2000, AAM celebrated the grand opening of its Cheektowaga, New York facility. Today, 120 new AAM associates are working in the Cheektowaga facility, using the latest technology, tooling, equipment and systems to machine net-shaped gears. This critical value-added process had previously been performed by outside suppliers.

The company continues to make progress on its strategies of diversifying its customer base and expanding its product offerings. During the second quarter, AAM announced that it had been selected as the supplier of rear axles and driveshafts for a future Ford vehicle. This is AAM's first axle program with Ford Motor Company.

Several AAM locations are readying themselves for the launch of AAM's newest axle and driveline products which will go into GM's next generation mid-size SUVs to be launched in early 2001. These new products will be produced and launched at the Buffalo Gear, Axle & Linkage facility, the Detroit Gear, & Axle facility, the Three Rivers (Michigan) Driveline facility and the Detroit Forge facility.

AAM is a world leader in the manufacture, engineering, design and validation of driveline systems, chassis systems and forged products for trucks, buses, sport utility vehicles, and passenger cars. In addition to 13 locations in the United States (in Michigan, Ohio and New York), AAM has offices and facilities in Brazil, England, Germany, Japan, Mexico and Scotland.

Certain statements contained in this press release which are not historical facts contain forward-looking information with respect to the company's plans, projections or future performance, the occurrence of which involve risks and uncertainties that could cause the company's actual results or plans to differ materially from those expected by the company which include risk factors described in the company's filings with the Securities and Exchange Commission.

For more information, visit the AAM website at www.aam.com

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME


Three months ended Six months ended
June 30, June 30,
------------------ -----------------
2000 1999 2000 1999
---- ---- ---- ----
(In millions, except per share data)

Net sales $819.7 $800.8 $1,655.6 $1,498.5

Cost of goods sold 699.6 692.4 1,415.8 1,298.0
------- ------- ---------- ---------
Gross profit 120.1 108.4 239.8 200.5

Selling, general
and administrative
expenses 41.9 39.1 84.1 73.1

Goodwill
amortization 1.1 1.1 2.1 1.2
------- ------- ---------- ---------
Operating income 77.1 68.2 153.6 126.2

Net interest
expense (14.9) (15.1) (28.1) (27.1)

Other income
(expense), net 1.3 (0.1) 1.6 (0.1)
------- ------- ---------- ---------
Income before
income taxes 63.5 53.0 127.1 99.0

Income taxes 23.5 19.3 47.0 36.3
------- ------- ---------- ---------

Net income $ 40.0 $ 33.7 $ 80.1 $ 62.7
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Diluted earnings
per share $ 0.80 $ 0.67 $ 1.60 $ 1.28
======= ======= ========== =========

Diluted shares
outstanding 50.1 50.1 50.1 49.0
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AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
--------------------------------------------------------------------------


June 30, December 31,
2000 1999
--------- -------------
(In millions)
ASSETS
------
Current assets:
Cash and equivalents $ 67.9 $ 140.2
Accounts receivable, net 327.5 194.0
Inventories 138.9 133.3
Prepaid expenses and other 53.5 42.0
--------- ---------
Total current assets 587.8 509.5

Property, plant and
equipment, net 1,056.9 929.0
Goodwill and other assets 216.2 238.6
--------- ---------
Total assets $1,860.9 $1,677.1
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LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

Current liabilities $ 481.5 $ 446.7
Long-term debt 820.7 774.9
Postretirement benefits
and other long-term liabilities 215.6 191.8
--------- ---------
Total liabilities 1,517.8 1,413.4

Stockholders' equity 343.1 263.7
--------- ---------
Total liabilities and
stockholders' equity $1,860.9 $1,677.1
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