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

May 04, 2009 | About:
10qk

American Axle & Manufacturing Holdings I (AXL) filed Quarterly Report for the period ended 2009-03-31.

American Axle & Manufacturing Holdings Inc. is a world leader in the design engineering and manufacture of driveline systems for light trucks and sport utility vehicles. The company's product lines include rear axles independent front four-wheel drive axles all-wheel-drive system components independent rear-drive systems TracRite differentials propeller shafts steering linkages anti-roll systems steering & suspension systems and forged products. (PRESS RELEASE) American Axle & Manufacturing Holdings I has a market cap of $60.47 million; its shares were traded at around $1.09 with and P/S ratio of 0.03.

Highlight of Business Operations:

Gross Profit Gross profit increased $14.4 million to $27.1 million in the first quarter of 2009 as compared to $12.7 million in the first quarter of 2008. Gross margin was 6.7% in the first quarter of 2009 as compared to 2.2% in the first quarter of 2008. The increase in gross profit and gross margin in the first quarter of 2009, as compared to the first quarter of 2008, reflects structural cost reductions resulting from the 2008 labor agreements with the International UAW and related capacity reduction initiatives. In addition, the gross profit and gross margin in the first quarter of 2008 includes the adverse impact of the strike, which was estimated to be $45.8 million. Partially offsetting the impact of the strike called by the International UAW and the structural cost reductions was the impact of reduced sales in the first quarter of 2009 as compared to the first quarter of 2008, as mentioned above.

Selling, General and Administrative Expenses (SG&A) SG&A (including research and development (R&D)) decreased $5.6 million to $43.8 million or 10.9% of net sales in the first quarter of 2009 as compared to $49.4 million or 8.5% of net sales in the first quarter of 2008. SG&A in the first quarter of 2009 includes special charges of $1.0 million relating to salaried workforce reductions. The decrease in SG&A is a result of cost reduction efforts including lower stock based compensation and profit sharing expense. R&D was $18.7 million in the first quarter of 2009 as compared to $20.2 million in the first quarter of 2008.

Net Loss Attributable to AAM (Net Loss) and Earnings (Loss) Per Share (EPS) Net loss was $32.7 million in the first quarter of 2009 as compared to $27.0 million in the first quarter of 2008. Diluted EPS was a loss of $0.59 in the first quarter of 2009 as compared to a loss of $0.50 in the first quarter of 2008. Net loss and EPS for the first quarters of 2009 and 2008 were primarily impacted by the factors discussed in Gross Profit and Income Tax Benefit above.

Investing Activities Capital expenditures were $44.3 million in the first quarter of 2009 as compared to $33.3 million in the first quarter of 2008. We expect our capital spending in 2009 to be in the range of $140 million to $150 million. These expenditures continue to support the future launch of new vehicle programs within our new business backlog and the expansion of our global manufacturing footprint.

Financing Activities Net cash used in financing activities was $45.0 million in the first quarter of 2009 as compared to $3.0 million in the first quarter of 2008. Total long-term debt outstanding decreased $45.1 million in the first quarter of 2009 to $1,094.8 million as compared to $1,139.9 million at year-end 2008.

At March 31, 2009, we had $174.7 million available under the Revolving Credit Facility. This availability reflects a reduction of $52.2 million for standby letters of credit issued against the facility. We also utilize foreign credit facilities and uncommitted lines of credit to finance working capital needs. At March 31, 2009, $37.0 million was outstanding and $9.9 million was available under such agreements.

Read the The complete ReportAXL is in the portfolios of Arnold Schneider of Schneider Capital Management, Charles Brandes of Brandes Investment.

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