American Axle & Manufacturing Holdings (AAM) has reported its financial results for the second quarter of 2018 and updated AAM’s full year 2018 financial outlook.
AAM’s sales in the second quarter of 2018 increased to $1.90 billion as compared to $1.76 billion in the second quarter of 2017. AAM’s net sales in the first half of 2018 were $3.76 billion as compared to $2.81 billion in the first half of 2017.
AAM’s net income in the second quarter of 2018 was $151.1 million, or $1.30 per share as compared to net income of $66.2 million, or 59 cents per share in the second quarter of 2017. AAM’s net income in the first half of 2018 was $240.5 million, or $2.08 per share, as compared to net income of $144.6 million, or $1.51 per share, in the first half of 2017.
“In the second quarter of 2018, AAM achieved record quarterly sales and gross profit,” said AAM’s Chairman and CEO David Dauch. “AAM also further strengthened its financial position while focusing on exciting new product launches, including our e-AAM electric drive systems.”
Adjusted earnings per share in the second quarter of 2018 were $1.23 compared to 99 cents in the second quarter of 2017. Adjusted earnings per share in the first half of 2018 were $2.21 as compared to $2.02 in the first half of 2017.
In the second quarter of 2018, Adjusted EBITDA was $347.9 million, or 18.3 percent of sales, as compared to $325.8 million, or 18.5 percent of sales, in the second quarter of 2017. In the first half of 2018, AAM’s Adjusted EBITDA was $664.9 million, or 17.7 percent of sales, as compared to $509.4 million, or 18.1 percent of sales, in the first half of 2017.
AAM’s net cash provided by operating activities for the second quarter of 2018 was $222.5 million. AAM’s net cash provided by operating activities for the first half of 2018 was $289.4 million.
AAM’s Adjusted free cash flow for the second quarter of 2018 was $100.3 million. AAM’s Adjusted free cash flow for the first half of 2018 was $58.6 million.
AAM’s Full Year 2018 Outlook
AAM is updating its full year 2018 financial outlook. AAM is now targeting full year 2018 sales in the range of $7.2 billion to $7.25 billion. The company is increasing its 2018 sales target due to higher-trending metal market customer passthroughs and additional customer directed-buy content. The nature of these sales increases does not have a significant impact on absolute dollar profitability, but impacts the calculation of Adjusted EBITDA margin. As a result, AAM’s Adjusted EBITDA margin target for 2018 is in the range of 17.5 percent to 17.75 percent. AAM continues to target Adjusted free cash flow of approximately 5 percent of sales in 2018.
