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

October 30, 2009 | About:
10qk

10qk

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American Axle & Manufacturing Holdings I (AXL) filed Quarterly Report for the period ended 2009-09-30.

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 $331.8 million; its shares were traded at around $5.99 with and P/S ratio of 0.2.

Highlight of Business Operations:

Selling, General and Administrative Expenses (SG&A) SG&A (including research and development (R&D)) was $44.0 million or 10.7% of net sales in the third quarter of 2009 as compared to $43.0 million or 8.1% of net sales in the third quarter of 2008. SG&A includes special charges related to salaried workforce reductions of $0.6 million and a credit of $1.4 million in the third quarter of 2009 and 2008, respectively. In addition, in the third quarter of 2009, we incurred $5.7 million of professional fees related to restructuring actions. R&D was $15.1 million in the third quarter of 2009 as compared to $21.2 million in the third quarter of 2008.

Gross Loss Gross loss was $99.5 million in the first nine months of 2009 as compared to $893.6 million in the first nine months of 2008. Gross margin was negative 9.4% in the first nine months of 2009 as compared to negative 55.6% in the first nine months of 2008. The change in gross loss and gross margin in the first nine months of 2009 as compared to the first nine months of 2008 reflects the impact of lower special charges, structural cost reductions resulting from the 2008 labor agreements with the International UAW and related capacity reduction initiatives. The gross loss and gross margin in the first nine months of 2009 also includes the adverse impact of extended production shutdowns at GM and Chrysler, which is estimated at $95.0 million. In addition, the gross loss and gross margin in the first nine months of 2008 includes the adverse impact of the International UAW strike, which is estimated at $129.4 million.

Selling, General and Administrative Expenses (SG&A) SG&A (including research and development (R&D)) was $133.3 million or 12.6% of net sales in the first nine months of 2009 as compared to $137.3 million or 8.5% of net sales in the first nine months of 2008. The decrease in SG&A in the first nine months of 2009 is a result of structural cost reduction efforts. SG&A includes special charges of $2.6 million and $2.0 million related to salaried workforce reductions in the first nine months of 2009 and 2008, respectively. In addition, we incurred $9.6 million of professional fees related to restructuring actions. R&D was $50.7 million in the first nine months of 2009 as compared to $63.4 million in the first nine months of 2008.

We expect to make payments of approximately $6 million in the fourth quarter of 2009, $15 million in 2010, $10 million in 2011 and $5 million in 2012 related to our restructuring accrual of $35.9 million as of September 30, 2009.

Financing Activities Net cash provided by financing activities was $45.6 million in the first nine months of 2009 as compared to $426.4 million in the first nine months of 2008. Total debt outstanding increased $39.2 million in the first nine months of 2009 to $1,179.1 million as compared to $1,139.9 million at year-end 2008.

The Amended Revolving Credit Facility provides up to $476.9 million of revolving bank financing commitments through April 2010 and $369.4 million of such revolving bank financing commitments through December 2011. At September 30, 2009, we had $87.9 million available under the Amended Revolving Credit Facility. This availability reflects a reduction of $46.5 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 September 30, 2009, $28.9 million was outstanding and $9.2 million was available under such agreements.

Read the The complete ReportAXL is in the portfolios of Arnold Schneider of Schneider Capital Management.

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10qk
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