American Axle & Manufacturing Holdings has reported record second quarter 2002 earnings per share increased 28% to 92 cents, as compared to the 72 cents earned in the second quarter of 2001.
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Earnings per share increased 37% to $1.68 for the six months ended June 30, 2002, as compared to the $1.23 earned in the same period of 2001.
Sales in the second quarter were at a record level for the company for the second straight quarter. Sales were up $70 million or 9% to $881 million for the second quarter of 2002 as compared to the $811 million in the year-earlier period.
This sales growth compares to a North American vehicle build that was up approximately 7%. Sales were positively impacted in the quarter by increased General Motors light truck production and were partially offset by a GM product mix shift to more mid-size SUVs.
The product mix shift also impacted average content-per-light-truck, resulting in a 2% reduction to $1,100 per vehicle versus the second quarter of last year. For the six months ended June 30, 2002, sales were $1.740 billion, representing an increase of $168 million, or 11%, from the $1.572 billion generated in the first six months of 2001.
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By GlobalDataAAM’s sales to its largest customer, GM, were up 12% in the second quarter of 2002 and up 14% for the six months ended June 30, 2002. GM revenues comprised approximately 89% of the company’s total revenues for the quarter and six months ended June 30, 2002.
Revenues from customers other than GM as a percentage of the company’s total revenues are expected to increase in the remainder of the year as the new heavy-duty Dodge Ram programme is launched.
Operating income was $87.0 million, or 9.9% of sales in the quarter, as compared to $70.8 million or 8.7% of sales for the second quarter of 2001. The company continues to focus on tight cost controls.
For the six months ended June 30, 2002, operating income was $159.5 million, or 9.2% of sales, versus $124.3 million, or 7.9% of sales for the same period of 2001.
Research and development spending (R&D) remained relatively flat at approximately $13 million in the second quarter of 2002. For the first half of 2002, R&D spending rose 3% to $27.1 million versus the same period of 2001.
Capital spending in the first six months of 2002 was $116.8 million, $123 million less than the $239.8 million spent in the first six months of 2001. These reduced levels of capital spending are in line with the company’s previous guidance as AAM has rebuilt its manufacturing facilities.
As a result of lower capital spending levels and a $49 million improvement in cash flow provided by operating activities, net cash flow after capital expenditures was $89 million positive in the quarter, or a $132 million improvement from the second quarter of 2001.
