DETROIT — American Axle & Manufacturing Holdings reported its financial results for the second quarter of 2010.  

Second Quarter 2010 Results      

• Second quarter 2010 sales of $559.6 million

• Gross profit of $98.9 million, or 17.7 percent of sales

• Operating income of $50.4 million, or 9 percent of sales

• Net income of $25.4 million, or $0.34 per share

• EBITDA (earnings before interest, taxes, depreciation and amortization) of $83.2 million, or 14.9 percent of sales

• Net cash provided by operating activities of $85.9 million

• Free cash flow (net cash provided by operating activities less capital expenditures net of proceeds from the sale of equipment) of $68.1 million, a $109.4 million year-over-year increase

AAM's results in the second quarter of 2010 were net earnings of $25.4 million or 34 cents per share. This compares to a net loss of $288.6 million or $5.20 per share in the second quarter of 2009.

In the second quarter of 2010, AAM incurred a net charge of $1.7 million, or 2 cents per share, primarily consisting of asset impairments related to the planned closure of AAM's Salem Manufacturing Facility in Ohio, net of adjustments to previously recorded estimates for supplemental unemployment benefits (SUB) and idled leased asset accruals.  

In the second quarter of 2009, AAM incurred special charges, asset impairments and non-recurring operating costs of $191.8 million, or $3.46 per share. These charges primarily related to asset impairments, hourly and salaried workforce reductions (including attrition programs and related statutory benefits) and the acceleration of expense related to the Buydown Program (BDP) for UAW-represented associates at AAM's Detroit, Michigan; Three Rivers, Michigan; and Cheektowaga, New York manufacturing facilities.

AAM's results in the second quarter of 2009 were also adversely impacted by the extended summer production shutdowns of GM and Chrysler. AAM estimates the reduction in sales and operating income resulting from these shutdowns in the second quarter of 2009 was approximately $203.6 million and approximately $65.7 million (or $1.18 per share), respectively.

"The second quarter of 2010 marked AAM's fourth consecutive quarter of sequential sales gains and improved profit and cash flow performance," said AAM's Co-Founder, Chairman of the Board and Chief Executive Officer Richard E. Dauch. "AAM is benefiting from a recovery in market demand for full-size pickups and SUVs, as well as a strong cadence of new product launches that is rapidly enhancing the diversification of our customer base and served markets. We expect these favorable conditions to continue throughout the second half of 2010, positioning AAM for full year sales growth of 40 percent to 45 percent and profit margins that rank among the best in our company's history."