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American Axle & Manufacturing Holdings I Reports Operating Results (10-Q)

July 27, 2012 | About:
10qk

10qk

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American Axle & Manufacturing Holdings I (AXL) filed Quarterly Report for the period ended 2012-06-30.

American Axle & Manufact. Holdings, Inc. has a market cap of $738.3 million; its shares were traded at around $10.67 with a P/E ratio of 4.6 and P/S ratio of 0.3.
This is the annual revenues and earnings per share of AXL over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of AXL.


Highlight of Business Operations:

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 six months 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 8.5% to $391.8 million in the first six months of 2012 as compared to $361.1 million in the first six months of 2011.

Selling, General and Administrative Expenses (SG&A) SG&A (including research and development (R&D)) decreased to $55.5 million or 7.5% of net sales in the second quarter of 2012 as compared to $58.8 million or 8.6% of net sales in the second quarter of 2011. R&D was $28.8 million in the second quarter of 2012 as compared to $27.3 million in the second quarter of 2011. The decrease in SG&A in the second quarter of 2012 primarily reflects lower incentive compensation accruals and stock-based compensation expense, which was partially offset by increased R&D spending.

Our content-per-vehicle (as measured by the dollar value of our products supporting our customers' North American light truck and SUV programs) was $1,457 in the first six months of 2012 as compared to $1,491 in the first six months of 2011. The decrease in content-per-vehicle is due to a reduction in deferred revenue recognition related to the 2008 AAM - GM Agreement and lower four-wheel drive penetration in our customers' North American light truck and SUV programs. Our 4WD/AWD penetration rate was 62.9% in the first six months of 2012 as compared to 63.7% in the first six months of 2011.

The change in gross profit in the first six months of 2012 as compared to the first six months of 2011 primarily reflects the adverse impact of special charges of $28.1 million of expense for a contingency related to a claim made by the International UAW for pension and postretirement benefits, $24.2 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 six months of 2012, as compared to the first six months of 2011, also reflects the impact of increased freight and material cost and 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 $117.3 million or 7.9% of net sales in the first six months of 2012 as compared to $115.5 million or 8.7% of net sales in the first six months of 2011. R&D was $58.9 million in the first six months of 2012 as compared to $53.6 million in the first six months of 2011. The increase in SG&A in the first six months of 2012 primarily reflects increased 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.

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