American Axle and Manufacturing Inc.
) reported earnings of $18.6 million or 23 cents per share before
debt refinancing and redemption costs in the first quarter of the
year that plunged 62.3% from 61 cents per share in the comparable
quarter of 2012 (excluding special items). Nevertheless, earnings
surpassed the Zacks Consensus Estimate of 15 cents during the
On a reported basis, net earnings were $7.3 million or 10 cents
per share in the quarter versus $51.2 million 68 cents in the
first quarter of 2012.
Revenues were almost flat at $755.6 million compared with $751.5
million in the first quarter of 2012 and missed the Zacks
Consensus Estimate of $757 million. The company's revenues
reflect the adverse impact of roughly $12.5 million related to
the labor strike at
) Rayong plant in Thailand.
American Axle's content-per-vehicle - dollar value of its product
sales supporting GM's North American light truck and SUV programs
and Chrysler's heavy duty Dodge Ram pickup trucks - increased
2.0% to $1,504 from $ $1,475 in the first quarter of 2012.
However, the company witnessed a reverse trend in diversification
of its customer base during the quarter. The company's non-GM
sales decreased 2.8% to $188.1 million from $193.6 million in the
Gross profit dipped 25.1% to $104.3 million or 13.8% of sales
from $139.2 million or 18.5% in the first quarter in 2012.
Meanwhile, operating income slashed 42.2% to $44.7 million or
5.9% of sales from $77.4 million or 10.3% a year ago.
American Axle had cash and cash equivalents of $100.8 million as
of Mar 31, 2013, up from $62.4 million as of Dec 31, 2012.
Long-term debt increased to $1.6 million as of Mar 31, 2013
compared with $1.5 billion as of Dec 31, 2012.
The company had lower operating net cash flow use of $26.8
million compared with $71.5 million in the first quarter of 2012.
Net capital spending of the company was $47.8 million compared
with $43.6 million in the same period of 2012. Therefore,
American Axle had narrower free cash flow use of $70.7 million in
the quarter compared to the use of $115.1 million in the
corresponding period in 2012.
American Axle is a leading supplier of driveline systems, modules
and components for the light vehicle market. The company makes
axles, driveshaft and chassis components for light trucks, sport
utility vehicles and passenger cars.
The company with its numerous new global product and process
launches featuring advanced driveline technology, and customer
diversification expects to grow in the future. Currently, it
retains a Zacks Rank #3 (Hold).
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