American Axle & Manufacturing Reports Net Loss in Third Quarter

DETROIT — American Axle & Manufacturing Holdings Inc. (AAM) has reported its financial results for the third quarter of 2008.

AAM’s results in the third quarter of 2008 were a net loss of $440.9 million or $8.54 per share. This compares to net earnings of $13.5 million, or 25 cents per share, in the third quarter of 2007.

In the third quarter of 2008, AAM recorded special charges and non-recurring operating costs of $398 million, or $7.71 per share. The majority of these charges and costs were non-cash in the period.

Net sales in the third quarter of 2008 were $528.1 million as compared to $774.3 million in the third quarter of 2007. Customer production volumes for the major light truck and SUV product programs AAM currently supports for GM and Chrysler were down approximately 44 percent in the third quarter of 2008 as compared to the prior year. Non-GM sales represented 26 percent of total sales in the third quarter of 2008 as compared to 24 percent in the third quarter of 2007.

AAM’s content-per-vehicle is measured by the dollar value of its product sales supporting GM’s North American truck and SUV platforms and Chrysler’s heavy duty Dodge Ram pickup trucks. In the third quarter 2008, AAM’s content-per-vehicle increased approximately 12 percent to $1,453 as compared to $1,303 in the third quarter of 2007.

Net sales in the first three quarters of 2008 were $1.6 billion as compared to $2.5 billion in the first three quarters of 2007. The company’s operating loss in the first three quarters of 2008 was $1 billion as compared to operating income of $125.1 million or 5 percent of sales for the first three quarters of 2007.

AAM’s SG&A spending for the third quarter of 2008 was $43 million as compared to $52 million in the third quarter of 2007. In the first three quarters of 2008, AAM’s SG&A spending was $137.3 million as compared to $155.1 million in the first three quarters of 2007. AAM’s R&D spending for the first three quarters of 2008 was approximately $63.4 million as compared to $61.9 million in the first three quarters of 2007.