American Axle & Manufacturing Holdings earned $US34.0m or $0.64 per share in the second quarter of 2007 compared to $20.4m and $0.40 per share in Q2 2006.
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The supplier said Q2 earnings reflected the impact of special charges and other non-recurring operating costs of $7.0m, or $0.11 per share, related mostly to “incremental attrition programme activity”, plus an additional $5.5m charge, or $.09 per share, for the write-off of unamortised debt issuance costs and other costs related to the prepayment of a $250m term loan due in 2010.
“AAM is on track to achieve its annual objectives for sales growth, margin expansion and free cash flow generation,” said chairman and CEO Richard Dauch. “Our solid operating performance and strong cash flow in the second quarter of 2007 reflects AAM’s continuing emphasis on productivity gains, process efficiencies and structural cost reductions.”
Net sales in the second quarter of 2007 were $916.5m versus $874.6m a year previously.
Production volumes at GM and Chrysler for the full-size truck and SUV programmes AAM were approximately flat but AAM estimated that customer production volumes for its mid-sized truck and SUV programmes were down 18% in the quarter.
Non-GM sales represented approximately 24% of AAM’s total sales in the second quarter of 2007.
Gross Q2 margin was 12.3% versus 10.3% in Q2 2006. Operating income was $58.9m or 6.4% of sales versus $40.5m or 4.6%.
“AAM’s improved gross margin and operating income performance in the second quarter of 2007 primarily reflects the impact of higher sales, productivity gains and structural cost reductions resulting from the special attrition program and other ongoing restructuring actions,” the supplier said.
Net H1 sales were $1.7bn, approximately the same as last year. Gross margin was 11.5% versus 9.0% and operating income was $94.8m or 5.5% of sales versus $55.5m (3.2%) a year ago.
AAM said it had increased its backlog of new and incremental business by approximately $400m to an estimated $1.2bn for programmes launching in 2008 to the end of 2012.
