American Axle & Manufacturing Announces First Quarter Earnings Per Share Up 31%
26 April 2000
American Axle & Manufacturing Announces First Quarter Earnings Per Share Up 31%
First Quarter sales, net income and EPS at all-time highs
DETROIT, April 26 American Axle & Manufacturing Holdings,
Inc. (NYSE: AXL) today reported record first quarter 2000 net income of
$40.1 million, an increase of 38 percent over the $29.0 million reported in
the first quarter of 1999. Earnings per share increased 31% to 80 cents on a
diluted basis, versus 61 cents per share during the same period the prior
year.
Sales increased 20% to $835.9 million for the first quarter of 2000 as
compared to $697.7 million in the first quarter of 1999. The primary factors
for this growth are continued strong demand for the company's automotive
products, higher average dollar content per vehicle and the impact of the
Colfor Manufacturing, Inc., MSP Industries Corporation and AAM do Brasil
acquisitions made in 1999.
Operating income improved 32 percent to $76.5 million, or 9.2% of sales in
the quarter, as compared to $58.0 million or 8.3% of sales for the first
quarter of 1999.
"We are extremely pleased to show such strong year-over-year financial
growth. We have been able to do this while supplying our customers at
industry-record volume levels," said American Axle & Manufacturing Chairman,
CEO & President Richard E. Dauch. "We continue to provide the capacity and
flexibility required for our major customer, General Motors Corporation, as
they focus on increasing their light truck penetration."
Recent developments
The company is making significant progress on its strategies of
diversifying its customer base and expanding its product offerings. Recently,
AAM announced that it had been selected as the supplier of rear axles and
driveshafts for a future Ford vehicle. This is AAM's first axle program with
Ford Motor Company.
It follows AAM's 1999 announcements that it will provide to
DaimlerChrysler front and rear axles for a Dodge Ram full-size pick-up truck
program beginning model year 2003 and to provide rear axles for its six-ton
Mercedes-Benz transporter van, model year 2001, for the European market.
GM revenues comprised approximately 84% of the company's total revenues
for the first quarter of 2000 as compared to approximately 86% for the full
year 1999. With the addition of future business awarded to AAM for model
years 2000 through 2004, GM revenues will be at a 79 percent (pro forma)
level.
AAM is a world leader in the manufacture, engineering and design of
driveline systems, chassis systems and forged products for trucks, buses,
sport utility vehicles, and passenger cars. In addition to 13 locations in
the United States (in Michigan, Ohio and New York), AAM has offices and
facilities in Brazil, England, Germany, Japan, Mexico and Scotland.
Certain statements contained in this press release which are not
historical facts contain forward-looking information with respect to the
company's plans, projections or future performance, the occurrence of which
involve risks and uncertainties that could cause the company's actual results
or plans to differ materially from those expected by the company which include
risk factors described in the company's filings with the Securities and
Exchange Commission.
For more information:
Media relations contact: Investor relations contact:
Karen J. Manardo Robert A. Krause
Manager, Media Relations & Vice President & Treasurer
Communications 313-974-3074
313-974-2945 krauser@aam.com
ManardK@aam.com
Or visit the AAM website at http://www.aam.com
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended March 31,
---------------------------
2000 1999
------------ -------------
(In millions, except per share data)
Net sales $835.9 $697.7
Cost of goods sold 716.2 605.6
-------- --------
Gross profit 119.7 92.1
Selling, general and administrative expenses 42.2 34.0
Goodwill amortization 1.0 0.1
-------- --------
Operating income 76.5 58.0
Net interest expense (13.2) (12.0)
Other income, net 0.3 --
-------- --------
Income before income taxes 63.6 46.0
Income taxes 23.5 17.0
-------- --------
Net income $40.1 $29.0
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Diluted earnings per share $0.80 $0.61
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Diluted shares outstanding 50.1 47.4
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AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2000 1999
-------- -----------
(Unaudited)
(In millions)
ASSETS
Current assets:
Cash and equivalents $33.8 $140.2
Accounts receivable, net 320.4 194.0
Inventories 132.5 133.3
Prepaid expenses and other 45.8 42.0
-------- --------
Total current assets 532.5 509.5
Property, plant and equipment, net 994.2 929.0
Goodwill and other assets 228.1 238.6
-------- --------
Total assets $1,754.8 $1,677.1
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $472.4 $446.7
Long-term debt 766.2 774.9
Postretirement benefits and other
long-term liabilities 212.5 191.8
-------- --------
Total liabilities 1,451.1 1,413.4
Stockholders' equity 303.7 263.7
-------- --------
Total liabilities and stockholders' equity $1,754.8 $1,677.1
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