American Axle & Manufacturing Holdings Inc. (AAM) has reported its financial results for the fourth quarter and full year 2017 and confirmed AAM’s full year 2018 financial outlook.
AAM’s fourth quarter and full year 2017 results reflect the impact of the acquisition of Metaldyne Performance Group Inc. (MPG) that was completed on April 6, 2017.
AAM’s sales in the fourth quarter of 2017 increased to $1.73 billion as compared to $946.5 million in the fourth quarter of 2016. AAM’s sales for full year 2017 increased to a record $6.27 billion as compared to $3.95 billion for full year 2016. Non-GM sales in the fourth quarter of 2017 were $1.01 billion as compared to $323 million in the fourth quarter of 2016. Non-GM sales for full year 2017 were a record of $3.33 billion as compared to $1.29 billion for full year of 2016.
AAM’s net income in the fourth quarter of 2017 increased to $106.3 million, or 93 cents per share. This compares to net income of $46.9 million, or 59 cents per share, in the fourth quarter of 2016. For full year 2017, AAM’s net income was $337.1 million, or $3.21 per share. This compares to net income of $240.7 million, or $3.06 per share for full year 2016.
“2017 was a transformational year for AAM,” said AAM’s Chairman and CEO David Dauch. “We achieved another year of record sales and profitability while increasing our scale and accelerating business diversification through the acquisition of MPG. As we look ahead to 2018, we expect another year of outstanding financial results, further integration and synergy attainment and exceptional support of our customers on numerous product launches.”
Adjusted earnings per share in the fourth quarter of 2017 was 89 cents compared to 78 cents in the fourth quarter of 2016. For full year 2017, AAM’s Adjusted earnings per share was $3.75 compared to $3.30 in 2016.
AAM’s Full Year 2018 Outlook
AAM is targeting sales of approximately $7 billion in 2018. 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 (SAAR) will be in the range of 16.8 million to 17 million light vehicle units in 2018. AAM is targeting an Adjusted EBITDA margin in the range of 17.5 to 18 percent of sales in 2018.