American Axle & Manufacturing Holdings Inc. (AAM) has reported its financial results for the third quarter 2017 and updated its full year 2017 financial outlook.
“AAM’s third quarter performance was highlighted by continued sales growth, business diversification and cash flow generation as a result of our recent strategic actions and the realization of our new and incremental business backlog,” said David Dauch, AAM’s chairman and CEO.
AAM’s third quarter of 2017 results reflect the impact of the acquisition of Metaldyne Performance Group Inc. (MPG), which was completed on April 6, 2017.
AAM’s sales in the third quarter of 2017 increased to $1.72 billion as compared to $1.01 billion in the third quarter of 2016. AAM’s net sales in the first nine months of 2017 increased to $4.53 billion as compared to $3 billion in the first nine months of 2016. Non-GM sales in the third quarter of 2017 were a record $1.01 billion as compared to $307.7 million in the third quarter of 2016.
AAM’s net income in the third quarter of 2017 was $86.2 million, or 75 cents per share as compared to net income of $61.7 million, or 78 cents per share in the third quarter of 2016. AAM’s net income in the first nine months of 2017 was $230.8 million, or $2.27 per share as compared to $193.8 million, or $2.47 per share in the first nine months of 2016.
AAM Updates Full Year 2017 Outlook
AAM has increased its sales target to a range of $6.2 billion to $6.25 billion for the full year 2017, which excludes MPG’s pre-acquisition sales for the period between Jan. 1 and April 5, 2017. This sales projection is based on the anticipated launch schedule of programs in AAM’s new and incremental business backlog and the assumption that the U.S. The Seasonally Adjusted Annual Rate of sales will be approximately 17 million light vehicle units in 2017.
AAM to Redeem its 5.125 Percent Notes
AAM has issued a notice of redemption for the $200 million aggregate principal amount of its outstanding 5.125 percent senior unsecured notes due 2019 (5.125 percent notes) at par, plus accrued and unpaid interest to the redemption date of Dec. 4, 2017. AAM will use cash on hand to settle the redemption of the 5.125 percent notes.
“Our recent strong free cash flow generation has allowed AAM to accelerate our debt paydown plan. AAM will continue to maximize shareholder value through balanced capital allocation priorities focused on profitably growing the business while reducing our debt leverage,” said Dauch.