American Axle & Manufacturing Holdings I (AXL, Financial) filed Quarterly Report for the period ended 2010-03-31.
American Axle & Manufacturing Holdings I has a market cap of $840.3 million; its shares were traded at around $11.74 with and P/S ratio of 0.5. AXL is in the portfolios of Arnold Schneider of Schneider Capital Management, Paul Tudor Jones of The Tudor Group, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
Selling, General and Administrative Expenses (SG&A) SG&A (including research and development (R&D)) was $45.3 million or 8.7% of net sales in the first quarter of 2010 as compared to $43.8 million or 10.9% of net sales in the first quarter of 2009. The increase in SG&A in the first quarter of 2010 reflects higher profit sharing accruals and other incentive compensation expense due to increased profitability, partially offset by structural cost reductions. SG&A in the first quarter of 2009 included special charges of $1.0 million relating to salaried workforce reductions. R&D was $19.1 million in the first quarter of 2010 as compared to $18.7 million in the first quarter of 2009.
Cash paid for special charges In the first quarter of 2010, we made cash payments of $16.6 million for special charges compared to $36.9 million in the first quarter of 2009. These payments primarily relate to hourly and salaried workforce reductions initiated prior to 2010, including $12.4 million of pension contributions made in the first quarter of 2010 related to special termination benefit payments that were previously paid out of our pension trusts. We expect to make payments of approximately $11 million during the remainder of 2010, $10 million in 2011 and $6 million in 2012 related to the remaining restructuring accrual.
Investing Activities Capital expenditures were $18.8 million in the first quarter of 2010 as compared to $44.8 million in the first quarter of 2009. We expect our capital spending in 2010 to be in the range of $80 million to $100 million. These expenditures include support for our significant global program launches in 2010 and 2011 within our new business backlog.
Financing Activities Net cash used in financing activities was $58.9 million in the first quarter of 2010 as compared to $45.0 million in the first quarter of 2009. Total long-term debt outstanding decreased $56.2 million in the first quarter of 2010 to $1,015.2 million as compared to $1,071.4 million at year-end 2009, primarily as a result of an increase in cash flow from operations.
At March 31, 2010, we had $264.1 million available under the Revolving Credit Facility. This availability reflects a reduction of $32.2 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, 2010, $37.9 million was outstanding and $2.9 million was available under such agreements.
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American Axle & Manufacturing Holdings I has a market cap of $840.3 million; its shares were traded at around $11.74 with and P/S ratio of 0.5. AXL is in the portfolios of Arnold Schneider of Schneider Capital Management, Paul Tudor Jones of The Tudor Group, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Gross Profit Gross profit increased $60.2 million to $87.3 million in the first quarter of 2010 as compared to $27.1 million in the first quarter of 2009. Gross margin increased to 16.7% in the first quarter of 2010 as compared to 6.7% in the first quarter of 2009. The increase in gross profit and gross margin in the first quarter of 2010, as compared to the first quarter of 2009, reflects the positive impact of an increase in sales and continued structural cost reductions. Gross profit in the first quarter of 2010 also reflects the adverse impact of an arbitration ruling related to the transfer of certain production from the Detroit Manufacturing Complex (DMC) to another AAM facility. In connection with the arbitrator s ruling, AAM recorded a liability for wages and benefits owed to certain UAW represented associates at the DMC. Gross profit in the first quarter of 2009 included $11.3 million in special charges and other nonrecurring operating costs.Selling, General and Administrative Expenses (SG&A) SG&A (including research and development (R&D)) was $45.3 million or 8.7% of net sales in the first quarter of 2010 as compared to $43.8 million or 10.9% of net sales in the first quarter of 2009. The increase in SG&A in the first quarter of 2010 reflects higher profit sharing accruals and other incentive compensation expense due to increased profitability, partially offset by structural cost reductions. SG&A in the first quarter of 2009 included special charges of $1.0 million relating to salaried workforce reductions. R&D was $19.1 million in the first quarter of 2010 as compared to $18.7 million in the first quarter of 2009.
Cash paid for special charges In the first quarter of 2010, we made cash payments of $16.6 million for special charges compared to $36.9 million in the first quarter of 2009. These payments primarily relate to hourly and salaried workforce reductions initiated prior to 2010, including $12.4 million of pension contributions made in the first quarter of 2010 related to special termination benefit payments that were previously paid out of our pension trusts. We expect to make payments of approximately $11 million during the remainder of 2010, $10 million in 2011 and $6 million in 2012 related to the remaining restructuring accrual.
Investing Activities Capital expenditures were $18.8 million in the first quarter of 2010 as compared to $44.8 million in the first quarter of 2009. We expect our capital spending in 2010 to be in the range of $80 million to $100 million. These expenditures include support for our significant global program launches in 2010 and 2011 within our new business backlog.
Financing Activities Net cash used in financing activities was $58.9 million in the first quarter of 2010 as compared to $45.0 million in the first quarter of 2009. Total long-term debt outstanding decreased $56.2 million in the first quarter of 2010 to $1,015.2 million as compared to $1,071.4 million at year-end 2009, primarily as a result of an increase in cash flow from operations.
At March 31, 2010, we had $264.1 million available under the Revolving Credit Facility. This availability reflects a reduction of $32.2 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, 2010, $37.9 million was outstanding and $2.9 million was available under such agreements.
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