American Axle & Manufacturing Holdings, Inc. (AAM), today reported record fourth quarter 2001 earnings per share of 62 cents, an increase of 22% versus 51 cents per share in the fourth quarter 2000. The performance was substantially ahead of analysts’ expectations.
Earnings for the full year 2001 were $2.36 per share versus $2.60 per share last year.
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The company reported record sales in the fourth quarter of 2001 – $791.6 million, up 7% as compared to $738.4 million in the fourth quarter of 2000.
Sales in the quarter were positively impacted by increased General Motors light truck production and a 9% increase in AAM content per light truck to more than $1,100.
This was offset by reductions in GM passenger car related products and 10% decreases with non-GM customers. For the full year 2001, sales were a record $3.1 billion, representing an increase of 1%. This compares to an estimated 10% reduction in N.A. light vehicle production for the year and a 4% decrease in General Motors light truck production. Content per light truck increased 14% for the full year 2001 to in excess of $1,100.
“AAM’s record fourth quarter performance and strong free positive cash flow resulted from our focus on designing and manufacturing new technology- based products that meet customer needs. Additionally we are pleased to deliver on our commitment of positive free cash flow as capital expenditures continue to ramp down,” said American Axle & Manufacturing Co-Founder, Chairman & CEO Richard E. Dauch.
The company took an $11.7 million pretax charge, included in cost of goods sold, in the fourth quarter of 2001 to consolidate its operations located in the UK. This adversely impacted earnings per share by approximately 15 cents in the quarter.
The company said that these actions were taken primarily due to the unfavourable pound sterling/euro exchange rate, which has adversely impacted the long-term competitiveness of its UK component operations in addition to the overall reduction of volumes in the European vehicle market.
This charge reflects the consolidation of three facilities into two facilities and downsizing of associate levels, while maintaining the competitiveness of our core driveline operations.
