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American Axle & Manufacturing Holdings I Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: October 26, 2012 04:34PM

American Axle & Manufacturing Holdings I (AXL) filed Quarterly Report for the period ended 2012-09-30. American Axle & Mfg Holdings, Inc. has a market cap of $899.6 million; its shares were traded at around $10.38 with a P/E ratio of 6 and P/S ratio of 0.4.



Highlight of Business Operations:

We are also the principal supplier of driveline system products for the Chrysler Group LLC s (Chrysler) heavy-duty Ram full-size pickup trucks and its derivatives. Sales to Chrysler were approximately 9% of our total net sales in the first nine months of 2012 as compared to 8% for both the first nine months and the full-year 2011. In addition to GM and Chrysler, we supply driveline systems and other related components to Volkswagen AG, Audi AG, Scania AB, Mack Trucks Inc., PACCAR Inc., Nissan Motor Co. Ltd., Harley-Davidson Inc., Tata Motors, Ford Motor Company, Deere & Company and other original equipment manufacturers (OEMs) and Tier I supplier companies. Our net sales to customers other than GM increased 10% to $588.5 million in the first nine months of 2012 as compared to $535.0 million in the first nine months of 2011.

Selling, General and Administrative Expenses (SG&A) SG&A (including research and development (R&D)) was $60.6 million or 8.6% of net sales in the third quarter of 2012 as compared to $59.0 million or 9.1% of net sales in the third quarter of 2011. R&D was $31.4 million in the third quarter of 2012 as compared to $31.8 million in the third quarter of 2011.

Our content-per-vehicle (as measured by the dollar value of our products supporting our customers' North American light truck and SUV programs) was $1,460 in the first nine months of 2012 as compared to $1,483 in the first nine months of 2011. The change in content-per-vehicle is primarily due to a reduction in deferred revenue recognition related to the 2008 AAM - GM Agreement. Our 4WD/AWD penetration rate increased to 63.2% in the first nine months of 2012 as compared to 62.7% in the first nine months of 2011.

The change in gross profit in the first nine months of 2012, as compared to the first nine months of 2011, primarily reflects the adverse impact of special charges of $28.7 million of expense related to contractual termination benefits provided to certain eligible UAW associates as a result of the DMC and CKMF plant closures, $26.4 million of expense primarily related to asset redeployment and other restructuring costs associated with the closure of DMC and CKMF and a $21.8 million OPEB curtailment gain recorded as a result of the DMC and CKMF hourly associates who have terminated employment from AAM as a result of our plant closures. The change in gross profit and gross margin in the first nine months of 2012, as compared to the first nine months of 2011, also reflects the impact of costs associated with increased levels of global launch activity, lower capacity utilization and increased material and freight costs. Gross profit in the first nine months of 2012 also includes higher warranty accruals, which was partially offset by a $5.2 million settlement gain related to the termination of our UAW Legal Services Plan.

Selling, General and Administrative Expenses (SG&A) SG&A (including research and development (R&D)) was $177.9 million or 8.1% of net sales in the first nine months of 2012 as compared to $174.5 million or 8.8% of net sales in the first nine months of 2011. R&D was $90.3 million in the first nine months of 2012 as compared to $85.4 million in the first nine months of 2011. The increase in SG&A in the first nine months of 2012 reflects higher R&D spending and increases in our salaried workforce to support worldwide growth, which is partially offset by lower incentive compensation accruals and stock-based compensation expense.

Read the The complete Report



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