American Axle posts record sales, profitability for both 4Q and full-year 2017
American Axle & Manufacturing Holdings Inc. (AAM) reported record sales and profitability for both fourth quarter and full-year 2017, driven by an accelerated business diversification and strong light-truck production, as it continues to absorb the benefits of its Metaldyne acquisition last year.
For fourth quarter 2017, AAM saw sales of US$ 1.73 billion. This compares to US$ 947 million for fourth quarter 2016. Adjusted earnings (EBITDA) was US$ 295.7 million of 17.1% of sales.
Non-GM sales in the fourth quarter of 2017 were US$ 1.01 billion, more than triple than the US$ 323.0 million in the fourth quarter of 2016. Non-GM sales accounted for 58% of sales in the fourth quarter, compared with 34% in 2016.
For full year 2017, AAM sales totaled a record US$ 6.27 billion compared to US$ 3.95 billion for full-year 2016. Non-GM sales for full year 2017 were a record of US$ 3.33 billion as compared to US$ 1.29 billion for full year 2016.
AAM’s 2017 adjusted EBITDA was US$ 1.1 billion or 17.6% of sales compared to US$ 619.4 million or 15.7% of sales for full year 2016.
The supplier recorded a US$ 13.1 million tax benefit compared with an income tax expense of US$ 4.5 million in the fourth quarter of 2016.
During 2018, AAM will launch more than 50 major project and program launches for global customers including AAM’s first e-AAM electric and hybrid driveline program. The program includes front and rear e-Drive units on a fully electric, all-wheel-drive crossover vehicle.
AAM is also entering production on power transfer units featuring all-wheel-drive disconnecting technology on a global crossover vehicle platform. This is the company’s third EcoTrac customer since launching this innovative technology in 2013.
The company operates 9 manufacturing sites in Mexico, 5 are located in Silao, Guanajuato; 2 in Ramos Arizpe, Coahuila; one in Aguascalientes and another one in El Carmen, Nuevo Leon.