American Axle & Manufacturing Holdings Inc. (AAM) has reported its financial results for the first quarter of 2016 and announced a share repurchase program.
AAM’s net income in the first quarter of 2016 was $61.1 million, or 78 cents per share, as compared to net income of $53.2 million, or 68 cents per share, in the first quarter of 2015.
“Our strong first quarter financial results position AAM to achieve our full year 2016 financial targets,” said David Dauch, AAM’s chairman and CEO. “As we look forward to the remainder of 2016, we remain focused on supporting the launch of programs in our new business backlog and advancing AAM’s product technology to drive long-term profitable growth and shareholder value.”
AAM’s sales in the first quarter of 2016 were $969.2 million as compared to $969.1 million in the first quarter of 2015. Non-GM sales were $323.2 million in the first quarter of 2016 as compared to $328.9 million in the first quarter of 2015.
AAM’s gross profit in the first quarter of 2016 increased $21.2 million to $174 million, or 18 percent of sales, as compared to $152.8 million, or 15.8 percent of sales, in the first quarter of 2015.
Share Repurchase Program
AAM’s board of directors authorized a share repurchase program of up to $100 million of the company’s common shares through Dec. 31, 2018, as part of AAM’s overall capital allocation strategy. “The authorization of a share repurchase program by the board of directors demonstrates the confidence in AAM’s long-term growth and strong free cash flow generation as well as our commitment to create and deliver value to our shareholders,” said Dauch.