American Axle & Manufacturing Holdings Inc. (AAM) has reported its financial results for the first quarter 2019.
“In the first quarter of 2019, AAM improved operational performance while supporting our customers on several important program launches,” said David Dauch, AAM’s chairman and CEO. “We look forward to building momentum throughout the year and achieving our launch and operational performance objectives while enhancing our profitability and free cash flow generation.”
AAM’s sales in the first quarter of 2019 were $1.72 billion as compared to $1.86 billion in the first quarter of 2018.
AAM’s net income in the first quarter of 2019 was $41.6 million, or 36 cents per share, as compared to net income of $89.4 million, or 78 cents per share in the first quarter of 2018.
Adjusted earnings per share in the first quarter of 2019 were 36 cents compared to 98 cents in the first quarter of 2018.
In the first quarter of 2019, Adjusted EBITDA was $245 million, or 14.3% of sales, as compared to $317 million, or 17.1% of sales, in the first quarter of 2018.
AAM to Redeem $100 million of its 7.75% Notes
AAM has issued a notice of redemption for the remaining $100 million of its 7.75% senior unsecured notes due 2019, plus accrued and unpaid interest to be paid on May 28, 2019. AAM will use cash on hand to settle the redemption of the 7.75% Notes.
AAM’s 2019 Financial Outlook
AAM’s previously stated 2019 full year targets remain unchanged. As a result of slower than expected customer launch curves and lower anticipated production volumes for certain programs, the company says it is currently trending toward the low end of its ranges.
• AAM is targeting sales in the range of $7.3 to $7.4 billion in 2019.
• AAM is targeting Adjusted EBITDA in the range of $1.2 to $1.25 billion in 2019.
• AAM is targeting Adjusted free cash flow in the range of $350 to $400 million in 2019.
Contemplating customer launch timing and planned downtime, AAM is targeting sales in the range of $1.75 to $1.8 billion and Adjusted EBITDA in the range of $270 to $280 million for the second quarter of 2019.
