Achieves record quarterly sales of $1.0 billion, driven by 15% year-over-year increase in non-GM sales
American Axle & Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the NYSE, today reported its financial results for the second quarter of 2015.
Second Quarter 2015 Results
- Second quarter 2015 sales of $1.0 billion, up 6.0% on a year-over-year basis
- Non-GM sales grew 15.1% on a year-over-year basis to $343.1 million
- Gross profit of $164.5 million, or 16.4% of sales
- Net income of $58.6 million, or $0.75 per share
- EBITDA (earnings before interest, income taxes, depreciation and amortization) of $146.9 million, or 14.6% of sales
- Free cash flow (net cash provided by operating activities less capital expenditures net of proceeds from the sale of property, plant, and equipment) of $100.1 million
AAM’s net income in the second quarter of 2015 was $58.6 million, or $0.75 per share as compared to net income of $52.2 million, or $0.67 per share, in the second quarter of 2014.
“AAM’s second quarter financial performance was highlighted by quarterly records for sales and profit dollars, driven by sales growth that continues to outpace the industry and strong operational performance,” said AAM’s Chairman, President & Chief Executive Officer, David C. Dauch. “AAM remains focused on flawlessly launching new customer programs in the second half of 2015, many of which feature AAM’s advanced product technologies designed to increase fuel efficiency, advance lightweighting initiatives and improve safety, ride and handling performance. These innovative solutions strongly position us to expand and diversify AAM’s customer base and product portfolio, while continuing to deliver excellent profit and cash flow performance for the benefit of all key stakeholders.”
AAM’s sales in the second quarter of 2015 increased approximately 6.0% to $1.0 billion as compared to $946.9 million in the second quarter of 2014. Non-GM sales grew 15.1% on a year-over-year basis to $343.1 million in the second quarter of 2015 as compared to $298.1 million in the second quarter of 2014.
AAM’s net sales in the first half of 2015 increased approximately 9.3% to $1.97 billion as compared to $1.81 billion in the first half of 2014. Non-GM sales in the first half of 2015 increased approximately 15% on a year-over-year basis to $672.0 million as compared to $585.9 million in the first half of 2014.
AAM’s content-per-vehicle is measured by the dollar value of its product sales supporting our customers’ North American light truck and SUV programs. In the second quarter of 2015, AAM’s content-per-vehicle was $1,637 as compared to $1,640 in the second quarter of 2014.
AAM’s gross profit in the second quarter of 2015 was $164.5 million, or 16.4% of sales, as compared to $149.0 million, or 15.7% of sales, in the second quarter of 2014.
AAM’s gross profit for the first half of 2015 was $317.3 million as compared to $270.9 million in the first half of 2014. Gross margin was 16.1% in the first half of 2015 as compared to 15.0% in the first half of 2014.
In the second quarter of 2015, AAM’s operating income was $93.9 million, or 9.4% of sales, as compared to $87.5 million, or 9.2% of sales, in the second quarter of 2014.
AAM’s operating income in the first half of 2015 was $178.2 million as compared to $152.3 million in the first half of 2014. Operating margin was 9.0% in the first half of 2015 as compared to 8.4% in the first half of 2014.
AAM’s SG&A spending in the second quarter of 2015 was $70.6 million, or 7.0% of sales, as compared to $61.5 million, or 6.5% of sales, in the second quarter of 2014. AAM’s R&D spending in the second quarter of 2015 was $29.5 million as compared to $24.4 million in the second quarter of 2014.
In the first half of 2015, AAM’s SG&A spending was $139.1 million as compared to $118.6 million in the first half of 2014. AAM’s R&D spending in the first half of 2015 was $56.8 million as compared to $50.2 million in the first half of 2014.
In the second quarter of 2015, AAM’s net income was $58.6 million, or $0.75 per share as compared to $52.2 million, or $0.67 per share in the second quarter of 2014. AAM’s net income in the first half of 2015 was $111.8 million, or $1.43 per share as compared to $85.8 million, or $1.11 per share in the first half of 2014.
AAM defines EBITDA to be earnings before interest, income taxes, depreciation and amortization. In the second quarter of 2015, AAM’s EBITDA increased over $10 million to $146.9 million, or 14.6% of sales, as compared to $136.7 million, or 14.4% of sales, in the second quarter of 2014.
AAM defines free cash flow to be net cash provided by operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment.
Net cash provided by operating activities for the second quarter of 2015 was $147.9 million. Capital spending, net of proceeds from the sale of property, plant and equipment, for the second quarter of 2015 was $47.8 million. Reflecting the impact of this activity, AAM generated free cash flow of $100.1 million for the second quarter of 2015.
AAM 2Q-2015 Earnings Press Release, including financial tables
