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Published on February 16, 2018

AAM Reports Record Results for 2017

DETROIT – American Axle & Manufacturing (AAM) reported record sales and profitability and increased scale and accelerated business diversification for both fourth quarter and full-year 2017.

For fourth quarter 2017, AAM saw sales of $1.73 billion. This compares to $947 million for fourth quarter 2016. Adjusted EBITDA was $295.7 million of 17.1% of sales.

Non-GM sales in the fourth quarter of 2017 were $1.01 billion as compared to $323.0 million in the fourth quarter of 2016.

For full year 2017, AAM sales totaled a record $6.27 billion compared to $3.95 billion for full-year 2016. Adding in first quarter MPG sales before the acquisition, AAM proforma sales would top $6.9 billion for 2017.

Non-GM sales for full year 2017 were a record of $3.33 billion as compared to $1.29 billion for full year 2016.

AAM’s 2017 adjusted EBITDA was $1.1 billion or 17.6% of sales compared to $619.4 million or 15.7% of sales for full year 2016.

“Overall it was a very successful year for AAM,” said David C. Dauch, Chairman and chief executive officer. “As we have increased our size, scale and global presence, we continue to focus on delivering quality, technology leadership and operational excellence each and every day at every one of our facilities.”

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.

“As we look ahead to 2018, we expect another year of outstanding financial results, further integration and synergy attainment and exceptional support of our customers on numerous product launches,” Dauch said.

To read AAM’s 2017 financial results press release visit aam.com.

 

 

 

For more information:

INVESTOR RELATIONS

David Lim

Head of Investor Relations

+1 (313) 758 2006

InvestorRelations@aam.com

MEDIA

Christopher Son

Vice President, Marketing & Corporate Communications

+1 (313) 758-4814

Contact
AMERICAN AXLE & MANUFACTURING

One Dauch Drive
Detroit, MI 48211-1198

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  • reduced purchases of our products by General Motors Company (GM), FCA US LLC (FCA), or other customers;
  • reduced demand for our customers' products (particularly light trucks and sport utility vehicles (SUVs) produced by GM and FCA);
  • our ability to develop and produce new products that reflect market demand;
  • lower-than-anticipated market acceptance of new or existing products;
  • our ability to respond to changes in technology, increased competition or pricing pressures;
  • our ability to attract new customers and programs for new products;
  • our ability to consummate and integrate acquisitions and joint ventures;
  • risks inherent in our international operations (including adverse changes in trade agreements, tariffs, immigration policies, political stability, taxes and other law changes, potential disruptions of production and supply, and currency rate fluctuations, including those resulting from the recent United States presidential election and the United Kingdom's vote to exit the European Union);
  • negative or unexpected tax consequences;
  • liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers;
  • our ability to achieve the level of cost reductions required to sustain global cost competitiveness;
  • supply shortages or price increases in raw materials, utilities or other operating supplies for us or our customers as a result of natural disasters or otherwise;
  • our ability or our customers' and suppliers' ability to successfully launch new product programs on a timely basis;
  • our ability to realize the expected revenues from our new and incremental business backlog;
  • risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber attack and other similar disruptions;
  • global economic conditions;
  • our ability to maintain satisfactory labor relations and avoid work stoppages;
  • our suppliers', our customers' and their suppliers' ability to maintain satisfactory labor relations and avoid work stoppages;
  • price volatility in, or reduced availability of, fuel;
  • our ability to protect our intellectual property and successfully defend against assertions made against us;
  • our ability to attract and retain key associates;
  • availability of financing for working capital, capital expenditures, research and development (R&D) or other general corporate purposes including acquisitions, as well as our ability to comply with financial covenants;
  • our customers' and suppliers' availability of financing for working capital, capital expenditures, R&D or other general corporate purposes;
  • changes in liabilities arising from pension and other postretirement benefit obligations;
  • risks of noncompliance with environmental laws and regulations or risks of environmental issues that could result in unforeseen costs at our facilities;
  • adverse changes in laws, government regulations or market conditions affecting our products or our customers' products (such as the Corporate Average Fuel Economy (CAFE) regulations);
  • our ability or our customers' and suppliers' ability to comply with the Dodd-Frank Act and other regulatory requirements and the potential costs of such compliance;  and
  • other unanticipated events and conditions that may hinder our ability to compete.
It is not possible to foresee or identify all such factors and we make no commitment to update any forward-looking statement or to disclose any facts, events or circumstances after the date hereof that may affect the accuracy of any forward-looking statement.