American Axle’s net income up 14% on record sales
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American Axle & Manufacturing Holdings Inc. (AAM) announced its net income rose 14% to US$ 89.4 million during the first quarter of 2018, boosted by record sales resulting from its acquisition last year of Metaldyne Performance Group Inc.
First quarter sales of the Detroit-based driveline supplier reached US$ 1.86 billion, compared to US$ 1.05 billion in the first quarter of 2017, the company reported.
The company completed a US$ 3.3 billion acquisition of powertrain supplier Metaldyne in April 2017, reducing the company's reliance on its largest customer, General Motors, and positioning it for US$ 7 billion in revenue this year.
Last month, AAM sold the aftermarket business of its Powertrain business unit to Hidden Harbor Capital Partners. Cash proceeds from the sale of these non-core assets were approximately US$ 50 million. The impact of this sale will be recorded in the Company's second quarter 2018 financial results.
The company had 2017 revenue of US$ 6.27 billion, and pre-merger revenue of US$ 3.95 billion in 2016. The supplier is planning 50-plus near-term major projects and launches aimed at growing and diversifying business.
Through the acquisition of Metaldyne, the presence of AAM in Mexico expanded to nine facilities, two of these are located in Ramos Arizpe, Coahuila, five in Silao, Guanajuato and one each in El Carmen, Nuevo Leon and Aguascalientes city.