American Axle & Manufacturing Holdings I Reports Operating Results (10-Q)
Amer Axle & Mfg has a market cap of $783.2 million; its shares were traded at around $10.19 with a P/E ratio of 5.2 and P/S ratio of 0.3.
Highlight of Business Operations:We are the principal supplier of driveline components to General Motors Company (GM) for its rear-wheel drive (RWD) light trucks and SUVs manufactured in North America, supplying substantially all of GM s rear axle and front four-wheel drive and all-wheel drive (4WD/AWD) axle requirements for these vehicle platforms. Sales to GM were approximately 74% of our total net sales in the first quarter of 2012 as compared to 72% in the first quarter of 2011 and 73% for the full-year 2011.
We are also the principal supplier of driveline system products for the Chrysler Group LLC s (Chrysler) heavy-duty Dodge Ram full-size pickup trucks and its derivatives. Sales to Chrysler were approximately 9% of our total net sales in the first quarter of 2012 and 2011, and 8% for 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 to $193.6 million in the first quarter of 2012 as compared to $178.4 million in the first quarter of 2011.
Gross Profit Gross profit increased to $139.2 million in the first quarter of 2012 as compared to $115.4 million in the first quarter of 2011. Gross margin increased to 18.5% in the first quarter of 2012 as compared to 17.9% in the first quarter of 2011. The increase in gross profit and margin in the first quarter of 2012, as compared to the first quarter of 2011, primarily reflects the positive impact of an increase in sales and a $21.8 million other postretirement benefits (OPEB) curtailment gain recorded as a result of the Detroit Manufacturing Complex (DMC) and Cheektowaga Manufacturing Facility (CKMF) hourly associates who have terminated employment from AAM as a result of our plant closures. Gross profit and gross margin were negatively impacted by increased costs for steel and other metallic material prices, in addition to special charges and other non-recurring operating costs of $16.0 million, primarily related to asset redeployment and other costs related to the closures of DMC and CKMF.
Selling, General and Administrative Expenses (SG&A) SG&A (including research and development (R&D)) was $61.8 million or 8.2% of net sales in the first quarter of 2012 as compared to $56.7 million or 8.8% of net sales in the first quarter of 2011. R&D was $30.1 million in the first quarter of 2012 as compared to $27.2 million in the first quarter of 2011. The increase in SG&A in the first quarter of 2012 primarily 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.
Investing Activities Capital expenditures were $44.5 million in the first quarter of 2012 as compared to $31.5 million in the first quarter of 2011. We expect our capital spending in 2012 to approximate 6.0% of sales (or approximately $175 million), which includes support for our significant global program launches in 2012 and 2013 within our new business backlog.
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