Detroit-based automotive manufacturing, engineering, design, and validation company American Axle Manufacturing today announced its 2016 financial results, which included sales of $3.95 billion, compared to $3.9 billion in 2015, and gross profit of $726.1 million, or 18.4 percent of sales.
The company reported net income of $240.7 million, and net cash provided by operating activities came in at $407.6 million.
“In 2016, AAM achieved another year of record sales and gross profit, strong global operational performance, and new business wins that will further drive sales diversification,” says David C. Dauch, AAM’s chairman and CEO. “As we look toward what we expect to be a transformational year for AAM in 2017, we will be laser focused on our commitment to provide our customers with world-class quality, operational excellence, and technology leadership.”
AAM’s selling, general, and administrative spending for 2016 was $319.2 million, as compared to $277.3 million in 2015.
With the second month of 2017 underway, the company is targeting sales of $4.1 billion during the coming year. The projection is based on the anticipated launch of programs in AAM’s new and incremental business backlog, as well as the assumption that U.S. Seasonally Adjusted Annual Rate of sales will be approximately 17.5 million light vehicle units in 2017. The company is also aiming for its adjusted free cash flow to be in the range of $175-$200 million in 2017.
Founded in 1994, AAM is a global leader in the design and production of driveline and drivetrain systems, and related components and modules, chassis systems, electric drive systems, and metal-formed products for light trucks, sport utility vehicles, passenger cars, crossover vehicles, and commercial vehicles.
In addition to its world headquarters in Detroit, the company has offices in Ohio and Indiana, as well as operations in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, Scotland, South Korea, Sweden, and Thailand.