American Axle & Manufacturing Holdings Inc. (AAM) has reported its financial results for the first quarter 2022. The company also revised its full year 2022 financial outlook.
First Quarter 2022 Results
- Sales of $1.44 billion
- Net income of $1 million, or 0.1% of sales
- Adjusted EBITDA of $196.1 million, or 13.7% of sales
- Diluted earnings per share of $0.01; Adjusted earnings per share of $0.19
- Net cash provided by operating activities of $68.5 million; Adjusted free cash flow of $53.9 million
“AAM’s first quarter financial results reflect our focus on managing factors under our control and delivering cash flow conversion,” said AAM’s Chairman and CEO, David C. Dauch. “The industry is experiencing unprecedented supply chain volatility stemming from multiple global challenges, but we continue to position AAM for long-term growth and invest in electrification. Our efforts recently resulted in AAM being named an Automotive News PACE and PACEpilot award finalist for our electric drive technology.”
AAM’s sales in the first quarter of 2022 were $1.44 billion as compared to $1.43 billion in the first quarter of 2021. The company estimates, on a year-over-year basis, sales for the first quarter of 2022 were unfavorably impacted by the semiconductor chip shortage that is affecting the automotive industry by approximately $31 million. Commodity cost (metal market) pass-throughs to customers and foreign exchange added approximately $39 million to the quarter.
AAM’s net income in the first quarter of 2022 was $1 million, or $0.01 per share, as compared to $38.6 million, or $0.33 per share in the first quarter of 2021.
AAM’s net cash provided by operating activities for the first quarter of 2022 was $68.5 million as compared to $179.1 million for the first quarter of 2021.
AAM’s 2022 Revised Financial Outlook
AAM’s full year revised 2022 financial targets are as follows:
AAM is targeting sales in the range of $5.6 billion – $5.8 billion
AAM is targeting Adjusted EBITDA in the range of $785 million – $830 million
AAM is targeting Adjusted free cash flow in the range of $300 million – $350 million; this target assumes capital spending of approximately 3.5% – 4.0% of sales
These targets are based on the following assumptions for 2022: North American light vehicle production of approximately 14.3 – 14.7 million units.
