LONDON, UK / ACCESSWIRE / December 15, 2017 / Active-Investors free earnings report on American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) ("American Axle") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=AXL. American Axle reported its third quarter fiscal 2017 operating results on November 02, 2017. The maker of auto parts outperformed top- and bottom-line expectations and updated its guidance for full-year 2017. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, American Axle & Manufacturing Holdings most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
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Earnings Highlights and Summary
For the three months ended September 30, 2017, American Axle's sales in Q3 2017 surged 70.3% to $1.72 billion compared to $1.01 billion in Q3 2016, mainly attributable to the results of the Metaldyne Performance Group Inc. (MPG) acquisition that was completed on April 06, 2017. The Company's revenue numbers topped analysts' estimates of $1.62 billion.
American Axle's non-GM (General Motors) sales were a record for the Company for Q3 2017, coming over $1 billion for the first time in American Axle's history, totaling $1.01 billion. The Company's non-GM sales were nearly 59% of its total sales for the reported quarter compared to sales of $307.7 million, or just over 30% of total sales, in Q3 2016.
American Axle's net income in Q3 2017 was $86.2 million, or $0.75 per share, compared to net income of $61.7 million, or $0.78 per share, in Q3 2016. The Company's adjusted earnings per diluted share, excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, and non-recurring items, were $0.86 compared to $0.83 in the year-ago same period. American Axle's earnings topped Wall Street's expectations of $0.64 per share.
American Axle's Segment Results
During Q3 2017, the driveline business unit recorded sales of $1.01 billion compared to $956 million in Q3 2016, which translated to $181.4 million of segment adjusted EBITDA in the reported quarter, compared to $134.4 million in the year-ago same period. American Axle's driveline business unit benefited from the continued realization of a strong new business backlog, heavily concentrated on customer crossover vehicle launches.
For Q3 2017, the metal forming business unit recorded sales of $368.2 million and $70.7 million of segment-adjusted EBITDA compared to $137.2 million of sales and $22.3 million of segment-adjusted EBITDA in Q3 2016.
The powertrain business unit recorded $260.9 million of sales and segment-adjusted EBITDA of $36.8 million in Q3 2017. These results reflected lower sequential production times, related to passenger cars due to changing customer preferences, seasonality, customer program changeover, and launch activities.
During Q3 2017, the casting business unit recorded sales of $226.6 million and segment-adjusted EBITDA of $8.8 million. The casting business unit experienced higher costs to meet increasing volumes in both the commercial vehicle and industrial markets. Sales related to these markets have increased over 40% on a y-o-y basis.
Cash Matters
American Axle's net cash provided by operating activities was $207.5 million for Q3 2017 compared to $107.5 million in Q3 2016. American Axle's adjusted free cash flow was $87.9 million for Q3 2017 compared to $54.6 million for Q3 2016.
Updated Full Year 2017 Outlook
American Axle raised its full-year 2017 sales target to a range of $6.2 billion to $6.25 billion, which excludes MPG's pre-acquisition sales for the period between January 01, 2017, and April 05, 2017.
American Axle is targeting adjusted EBITDA of approximately $1.1 billion, and adjusted free cash flow of approximately 5% of sales in 2017. The Company is estimating full-year capital spending of approximately 8% of sales in 2017.
Stock Performance Snapshot
December 14, 2017 - At Thursday's closing bell, American Axle & Manufacturing Holdings' stock fell 1.12%, ending the trading session at $16.81.
Volume traded for the day: 2.29 million shares, which was above the 3-month average volume of 2.23 million shares.
Stock performance in the last three-month – up 3.96%; and previous six-month period – up 15.53%
After yesterday's close, American Axle & Manufacturing Holdings' market cap was at $1.88 billion.
Price to Earnings (P/E) ratio was at 5.73.
The stock is part of the Consumer Goods sector, categorized under the Auto Parts industry.
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