Detroit-based auto supplier American Axle & Manufacturing Holdings Inc. (AAM) reported a net loss of $33.6 million for 2023 based on total sales of $6.08 billion.
More than half of thet loss came from the fourth quarter of 2023, says David C. Dauch, chairman and CEO of AAM. The reported net loss in the fourth quarter was $19.1 million based on sales of $1.46 billion.
“AAM’s fourth quarter performance was on track with our improvement objectives, ending a challenging 2023 on a better trajectory,” says Dauch. “As we look ahead, AAM will leverage its strong core business while selectively building a product portfolio to drive the future pivot to electrification.”
AAM’s fourth quarter of 2023 amounts to 16 cents a share as compared to net income of $13.9 million, or $0.11 per share in the fourth quarter of 2022.
Fourth Quarter 2023 Results:
- Sales of $1.46 billion.
- Net loss of $(19.1) million, or 1.3 percent of sales.
- Adjusted EBITDA of $169.5 million, or 11.6 percent of sales.
- Diluted loss per share of 16 cents; adjusted loss per share of 9 cents.
- Net cash provided by operating activities of $52.9 million; Adjusted free cash flow of $4.5 million.
Full Year 2023 Results:
- Sales of $6.08 billion.
- Net loss of $33.6 million, or 0.6 percent of sales.
- Adjusted EBITDA of $693.3 million, or 11.4 percent of sales.
- Diluted loss per share of 29 cents; adjusted loss per share of 9 cents).
- Net cash provided by operating activities of $396.1 million; adjusted free cash flow of $219.0 million.
Sales for the fourth quarter of 2023 were helped by volume and mix, but this was partially offset by the UAW work stoppage, says Dauch. Overall 2024 sales were favorably impacted by volume and mix and the Tekfor acquisition.
AAM’s net cash provided by operating activities for the fourth quarter of 2023 was $52.9 million as compared to $148.5 million for the fourth quarter of 2022. AAM’s net cash provided by operating activities for the full year 2023 was $396.1 million as compared to $448.9 million for full year 2022.
AAM’s adjusted free cash flow for the fourth quarter of 2023 was $4.5 million as compared to $99 million for the fourth quarter of 2022. AAM’s adjusted free cash flow for the full year 2023 was $219 million as compared to $313 million for full year 2022.
Dauch says AAM is targeting sales for 2024 in the range of $6.05 – $6.35 billion. The company expects its adjusted EBITDA to be in the range of $685-$750 million.
AAM is targeting adjusted free cash flow in the range of $200 – $240 million; this target assumes capital spending of approximately 4. percent – 4.5 percent of sales, says Dauch.
These targets are based on the following assumptions for 2024:
- North American light vehicle production of approximately 15.8 million units.
- AAM’s production estimates of key programs that it supports.
- Current customer launch schedules and operating environment.
AAM’s gross new and incremental business backlog launching from 2024-2026 is estimated at approximately $600 million in future annual sales, says Dauch. The company expects the launch cadence of the three-year backlog to be approximately $300 million in 2024, $175 million in 2025 and $125 million in 2026.
The company’s 2024 electrification mix of products is about 50 percent of AAM’s new business backlog versus 40 percent in the prior backlog (2023-2025). The backlog considers recent OEM powertrain trends and timing estimates, says Dauch.
