DETROIT — American Axle & Manufacturing Holdings (AAM) has reported its financial results for the third quarter of 2009.
The company reported third quarter sales of $409.6 million, AAM’s highest quarterly sales total in 2009.
Net income of $19.6 million, or 35 cents per share, marks AAM’s first quarterly profit in two years. This compares to a net loss of $440.9 million (or $8.54 per share) in the third quarter of 2008. AAM’s third quarter of 2009 net profit is the first profitable quarterly result AAM has reported since the third quarter of 2007.
AAM’s results in the third quarter of 2009 were adversely impacted by the extended production shutdowns of General Motors Co. (GM) and Chrysler Group LLC (Chrysler). AAM estimates the reduction in sales and operating income resulting from these shutdowns to be approximately $100.6 million and approximately $29.3 million (or $0.52 per share), respectively.
In the third quarter of 2009, AAM recorded pension and postretirement benefit curtailment gains of $42.3 million (or 76 cents per share). These gains were partially offset by special charges and restructuring costs of $13 million (or 23 cents per share), primarily relating to salaried attrition programs, capacity rationalization activities and the successful closing of a settlement and commercial agreement with GM and amendment of AAM’s Revolving Credit Facility and Term Loan agreements that position AAM to complete its restructuring outside of a bankruptcy process.
In the third quarter of 2008, AAM recorded $398 million (or $7.71 per share), of special charges, asset impairments and non-recurring operating costs, primarily related to hourly and salaried attrition programs and benefit reductions (including pension and other postretirement benefit curtailments and special and contractual termination benefits), plant closures and other capacity rationalization activities.
"We believe the third quarter of 2009 marks a positive turning point for AAM," said AAM’s Co-Founder, Chairman of the Board and Chief Executive Officer, Richard Dauch. "By finalizing new business agreements with General Motors Co. and amending our senior credit agreements, we have successfully resolved the short-term liquidity concerns that were facing AAM. We have also preserved the significant value inherent in AAM’s unparalleled manufacturing and engineering expertise; product, process and systems technology; and expanding new business backlog for our many key stakeholders. With these important objectives successfully achieved and AAM’s operational restructuring now nearly complete, we can once again focus on delivering outstanding value to our customers on a daily basis, profitably growing AAM’s global businesses and continuing to diversify AAM’s customer base, product portfolio and global manufacturing and sourcing footprint."
Net sales in the third quarter of 2009 were $409.6 million as compared to $528.1 million in the third quarter of 2008. On a sequential basis, AAM’s sales in the quarter were up 67 percent as compared to $245.6 million in the second quarter of 2009.
