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Web Address of American Axle & Manufacturing: Related Topics: Supplier Groups
© 1998 - 2004
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Companies
: American Axle
Full Year Highlights:
AAM reported record fourth quarter earnings per share of 99 cents, an increase of 60% as compared to 62 cents per share in the fourth quarter of 2001. Excluding a $5.5 million gain, net of tax and other related costs, due to insurance proceeds from a fire at AAM's forge operations in Detroit, fourth quarter earnings per share were 89 cents, an increase of 44% versus the same period in 2001. Earnings for the full year 2002 were a record $176.1 million, an increase in earnings of over 53% as compared to the $114.9 million reported for 2001. Excluding the forge fire gain, full year 2002 earnings per share were $3.28 on a diluted basis, an increase of 39% as compared to full year 2001. For the fourth quarter of 2002, sales were an all-time quarterly record $911.0 million, up 15% as compared to $791.6 million in the fourth quarter of 2001. Sales to non-GM customers were up 68% in the fourth quarter and represented 18% of total sales in the quarter versus 12% in the fourth quarter of 2001. AAM's record sales for the full year 2002 were $3.5 billion, up 12% as compared to $3.1 billion in 2001. This compares to an increase of approximately 6% in North American vehicle builds for the year. AAM sales in the quarter and the year were positively impacted by increased General Motors light truck production and the successful AAM launches of both the new heavy-duty Dodge Ram program and the HUMMER H2 Program. Sales to non-GM customers were up 23% for the year and represented 14% of total sales in 2002 versus 13% in the prior year. Additionally, a 2.2% increase in AAM content per light truck to more than $1,140 contributed to the increase in sales year over year. For the fourth quarter 2002, operating income was $83.0 million, or 9.1% of sales, versus $62.9 million, or 8.0% of sales for the fourth quarter of 2001. For the full year 2002, operating income was $311.2 million, or 8.9% of sales, as compared to $241.3 million or 7.8% of sales for the prior year. Cash flow provided by operations in the fourth quarter of 2002 was $91.5 million, up 61%, compared to $56.8 million generated in the similar period of 2001. AAM generated $131.3 million of cash flow from operations for the full year 2002. Excluding the $45 million used to repurchase leased assets, cash flow after capital expenditures was $176.5 million versus a use of $142.7 million in 2001, representing a $319.2 million improvement. With strong positive cash flow, AAM has been able to reduce net debt levels by $141 million in 2002, resulting in a 51% net debt to capital ratio at year-end versus the 62% level at December 31, 2001. "AAM has again been able to deliver strong financial performance for its shareholders with another record quarter and year. We continue to provide new technology products to our customers and increase our growth in non-GM sales, while delivering increased margins through continued focus on productivity and cost controls," said American Axle & Manufacturing Co-Founder, Chairman & CEO Richard E. Dauch. "I am pleased that we continue to deliver on our financial commitments of earnings and cash flow as well as reducing our net debt to capital ratio." As a result of its long-term R&D commitment, AAM generated 83% of its fourth quarter sales from new technology products introduced to the market since mid-1998. AAM generated approximately 78% of its year 2002 sales from new technology products introduced since mid-1998. This compares to 69% for the year 2001 and 48% for 2000. Recent developments During the fourth quarter of 2002, AAM received credit rating upgrades from both Standard and Poor's (S&P) and Moody's to BB+ and Ba1, respectively. On December 16, 2002, the Dodge Ram Heavy Duty pickup was named Motor Trend Magazine's 2003 Truck of the Year. This vehicle contains AAM's front and rear drive axles and front and rear driveshafts utilizing AAM's latest technology including mass reduction and noise, vibration and harshness (NVH) optimization. AAM has provided the driveline system on four of the last five Motor Trend Trucks of the Year. On January 3, 2003, AAM filed a shelf registration statement with the Securities and Exchange Commission with respect to possible secondary sales of up to approximately 14.0 million shares of common stock owned by Blackstone Capital Partners II Merchant Banking Fund L.P. and its affiliated funds (collectively, "Blackstone"). The filing represents advance preparation and provides increased flexibility for a longer-term, orderly exit strategy by Blackstone from its investment in AAM. On January 5, 2003, AAM's latest systems and module technology was featured in the Chevrolet Cheyenne concept pickup truck and the Cadillac Sixteen concept vehicle unveiled at the North American International Auto Show in Detroit, Michigan. Both vehicles include AAM rear-steer I-Ride(TM) chassis modules, providing optimum ride and handling as well as four-wheel steer capability. AAM is a world leader in the manufacture, engineering, design and validation of driveline systems and related components and modules, chassis systems and forged products for trucks, sport utility vehicles, and passenger cars. In addition to 14 locations in the United States (in Michigan, New York and Ohio), 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.
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