American Axle & Manufacturing Holdings Inc. (AAM) has reported its financial results for the fourth quarter and full year 2016 and confirmed its full year 2017 outlook.

AAM’s net income in the fourth quarter of 2016 was $46.9 million, or 59 cents per share. This compares to net income of $62.9 million, or 81 cents per share, in the fourth quarter of 2015.

For the full year 2016, AAM’s net income was $240.7 million, or $3.06 per share. This compares to net income of $235.6 million, or $3.02 per share in 2015.

Adjusted earnings per share in the fourth quarter of 2016 was 78 cents compared to 67 cents in the fourth quarter of 2015. For the full year 2016, AAM’s Adjusted earnings per share was $3.30 compared to $2.88 in 2015.

“In 2016, AAM achieved another year of record sales and gross profit, strong global operational performance, and new business wins that will further drive sales diversification,” said AAM’s Chairman and CEO David Dauch. “As we look toward what we expect to be a transformational year for AAM in 2017, we will be laser-focused on our commitment to provide our customers with world-class quality, operational excellence and technology leadership.”

Net sales in the fourth quarter of 2016 were $946.5 million as compared to $958.4 million in the fourth quarter of 2015. Non-GM sales in the fourth quarter of 2016 were $323 million as compared to $323.5 million in the fourth quarter of 2015.

Net sales for the full year 2016 were $3.95 billion as compared to $3.90 billion in 2015. Non-GM sales for the full year of 2016 were $1.29 billion as compared to $1.32 billion for the full year of 2015.

AAM’s gross profit in the fourth quarter of 2016 was $176.1 million as compared to $159.8 million in the fourth quarter of 2015. Gross margin was 18.6% in the fourth quarter of 2016 as compared to 16.7% in the fourth quarter of 2015.

AAM’s gross profit for the full year 2016 increased 14.3% on a year-over-year basis to $726.1 million as compared to $635.4 million for the full year of 2015. Gross margin was 18.4% for the full year of 2016 as compared to 16.3% for the full year of 2015.

AAM’s Full Year 2017 Outlook

AAM is confirming its stand-alone full year 2017 outlook as follows:

• AAM is targeting sales in the range of $4.1 billion to $4.2 billion in 2017. This sales projection is based on the anticipated launch schedule of programs in AAM’s new and incremental business backlog and the assumption that U.S. Seasonally Adjusted Annual Rate of sales will be approximately 17.5 million light vehicle units in 2017.
• AAM is targeting an Adjusted EBITDA margin in the range of 15.5 percent to 16 percent of sales in 2017.
• AAM is targeting Adjusted free cash flow in the range of $175 million to $200 million in 2017.
• AAM is targeting full year capital spending in the range of 6.5 percent to 7 percent of sales in 2017.