American Axle & Manufacturing Holdings Inc. (AAM) has reported its financial results for the second quarter of 2017 and confirmed its full year 2017 financial outlook.
AAM’s second quarter of 2017 results reflect the impact of the acquisition of Metaldyne Performance Group Inc. (MPG) that was completed on April 6.
AAM’s sales in the second quarter of 2017 increased to $1.76 billion as compared to $1.03 billion in the second quarter of 2016. AAM’s net sales in the first half of 2017 were $2.81 billion as compared to $1.99 billion in the first half of 2016. Non-GM sales in the second quarter of 2017 increased to a record $969.7 million, or 55.2 percent of sales, as compared to $333.9 million, or 32.6 percent of sales, in the second quarter of 2016.
AAM’s net income in the second quarter of 2017 was $66.2 million, or 59 cents per share, as compared to net income of $71 million, or 90 cents per share, in the second quarter of 2016. AAM’s net income in the first half of 2017 was $144.6 million, or $1.51 per share, as compared to net income of $132.1 million, or $1.68 per share, in the first half of 2016.
“AAM had an outstanding and transformational second quarter,” said David Dauch, AAM’s chairman and CEO. “Our financial results demonstrate the favorable impact of AAM’s recent strategic acquisitions and our ability to deliver operational excellence, technology leadership and world-class quality on a larger, more diverse scale. We are off to a great start on our integration activities and look forward to driving further value through achievement of our synergy and debt reduction targets.”
AAM defines Adjusted earnings per share to be diluted earnings per share excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs and non-recurring items, including the tax effect thereon. Adjusted earnings per share in the second quarter of 2017 were 99 cents compared to 89 cents in the second quarter of 2016. Adjusted earnings per share in the first half of 2017 were $2.02 as compared to $1.67 in the first half of 2016.
AAM Confirms Full Year 2017 Financial Outlook
AAM confirmed its full year 2017 financial outlook, which includes the impact of the MPG acquisition, reflecting the expected financial performance of the acquired entity from April 6, 2017 to Dec. 31, 2017.
AAM is targeting sales of approximately $6.1 billion in 2017, which excludes MPG sales for the period between Jan. 1, 2017 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. Seasonally Adjusted Annual Rate of sales will be approximately 17 million light vehicle units in 2017.
