American Axle and Manufacturing Inc.
) reported a loss of $1.7 million or 2 cents per share in the
fourth quarter of 2012, compared with a profit of $35.9 million
or 47 cents in the year-ago quarter.
The fourth-quarter 2012 results excluded impacts of debt
refinancing and redemption costs of $9.7 million or 13 cents per
share and restructuring costs of $6.2 million or 8 cents. The
quarterly results, however, included a favourable impact of a
$337.5 million related to the reversal of valuation allowance
against net federal deferred tax assets for entities in the
The year-ago quarter results reflected special charges and
restructuring costs related to the closure of Detroit
Manufacturing Complex and Cheektowaga Manufacturing Facility of
$4.8 million or 6 cents.
The company's loss considerably lagged the Zacks Consensus
Estimate of a profit of 17 cents. Meanwhile, on a reported basis,
the company reported a profit of $319.9 million or $4.21 per
share, compared with a profit of $31.1 million or 41 cents in the
fourth quarter of 2011.
The company's revenues increased 21.6% year over year to
$736.7 million during the quarter, surpassing the Zacks Consensus
Estimate of $733.0 million. The company's content-per-vehicle
(dollar value of the product sales supporting the company's
customers' North American light truck and SUV programs) increased
to $1,514 from $1,498 in fourth quarter 2011.
Cost of goods sold rose 30.6% to $652.7 million from $499.9
million a year ago. As a result, gross profit went down 20.5% to
$84.0 million from $105.7 million in the fourth quarter of
Gross margin was 11.4% compared to 17.5% in the year-ago
quarter. Operating income plunged 61.6% to $18.6 million or 2.5%
of sales from $48.5 million or 8% of sales in the prior-year
The company progressed well in diversifying its customer base
during the quarter. The company has a high exposure to customers
General Motors Company
) and Chrysler. Non-GM sales increased 16.6% to $204.1 million
(27.7% of sales) in the quarter from $175.0 million (28.9% of
sales) in the fourth quarter of 2011.
Adjusted earnings before interest expense, income taxes and
depreciation and amortization fell 28.9% to $64.5 million (8.8%
of sales) from $90.7 million (15% of sales) in the year-ago
For full year 2012, American Axle reported a significant
increase in adjusted earnings per share to $5.67 from $2.15 a
year ago. On a reported basis, profit was $367.7 million or $4.87
per share compared to $142.8 million or $1.89 in 2011. Revenues
increased 13.4% to $2.93 billion.
American Axle had cash and cash equivalents of $62.4 million
as of Dec 31, 2012, down from $169.2 million as of Dec 31, 2011.
Long-term debt increased to $1.5 billion as of Dec 31, 2012 from
$1.2 billion as of Dec 31, 2011. Long-term debt-to-capitalization
ratio was 1.1% versus 1.6% as of Dec 31, 2011.
In full year 2012, American Axle's cash flow used in operating
activities increased to $175.5 million from $56.3 million in the
same period of 2011. Capital expenditures (net) increased
marginally to $185.4 million from $184.1 million in 2011. This
led to a higher free operating cash flow use of $360.9 million in
2012 compared with $205.3 million in 2011.
American Axle is a leading supplier of driveline systems,
modules and components for the light vehicle market. The company
makes axles, driveshafts and chassis components for light trucks,
sport utility vehicles and passenger cars. It retains a Zacks
Rank #3 (Hold).
Commercial Vehicle Group Inc.
), both carrying Zacks Rank #1 (Strong Buy), are performing well
in the same industry where American Axle operates.
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