American Axle & Manufacturing Holdings (AAM) has reported its financial results for the second quarter 2020.
Second Quarter 2020 Results
- Sales of $515.3 million
- Net loss attributable to AAM of $(213.2) million, or (41.4)% of sales
- Adjusted EBITDA of $(52.1) million, or (10.1)% of sales
- Diluted loss per share of $(1.88); Adjusted loss per share of $(1.79)
AAM’s second quarter financial results were unfavorably impacted by global production shutdowns due to the coronavirus pandemic (COVID-19).
“AAM’s financial results for the second quarter of 2020 were adversely impacted by the extended global production shutdowns resulting from the COVID-19 pandemic. During the quarter, we adjusted our operations, structurally reduced costs and took action to strengthen our financial profile,” said AAM’s Chairman and CEO David Dauch. “As we continue to ramp up production and adjust our business to the new market demand in the second half of 2020, we are focused on the health and safety of our associates, supporting customer production schedules and launches, utilizing our operational excellence to generate positive financial performance and investing in our future.”
AAM’s sales in the second quarter of 2020 were $515.3 million as compared to $1.7 billion in the second quarter of 2019. AAM estimates that its sales for the second quarter of 2020 were unfavorably impacted by COVID-19 by approximately $947 million. In addition, the company’s second quarter of 2019 sales include $171 million related to its U.S. iron casting operations, which were sold in December 2019.
AAM’s net loss in the second quarter of 2020 was $(213.2) million, or $(1.88) per share, as compared to net income of $52.5 million, or $0.45 per share in the second quarter of 2019.
AAM defines Adjusted earnings (loss) per share to be diluted earnings (loss) per share excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, loss on sale of business, impairment charges and non-recurring items, including the tax effect thereon. Adjusted loss per share in the second quarter of 2020 was $(1.79) compared to Adjusted earnings per share of $0.55 in the second quarter of 2019.
AAM’s 2020 Financial Outlook
As a result of the unexpected disruption in light vehicle production and economic uncertainty due to the impact of the COVID-19 pandemic, AAM withdrew its 2020 financial outlook on March 25, 2020. Due to the continued uncertainty, the company stated it is not issuing revised 2020 financial targets at this time.