CURRENT REPORT, DATED APRIL 29, 2005
UNITED
STATES
SECURITIES
AND
EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT PURSUANT
TO
SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of
report (Date of earliest event reported): April 29, 2005
AMERICAN
AXLE & MANUFACTURING
HOLDINGS, INC . |
(Exact Name of Registrant as Specified in Its
Charter) |
Delaware |
|
1-14303 |
|
36-3161171 |
(State or
Other Jurisdiction of Incorporation) |
|
(Commission
File Number) |
|
(IRS Employer
Identification No.) |
One Dauch
Drive, Detroit, Michigan |
|
48211-1198 |
(Address of
Principal Executive Offices) |
|
(Zip
Code) |
(313)
758-2000 |
(Registrant's
Telephone Number, Including Area Code) |
|
(Former
Name or Former Address, if Changed Since Last
Report) |
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
o Written
communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
2.02. Results of Operations and Financial Condition.
The
following information consists of a press release dated April 29, 2005,
including financial information and financial data relating to American Axle
& Manufacturing Holdings, Inc. for the three months ended March
31, 2005. The information is being furnished pursuant to Item 2.02 of Form
8-K, “Results of Operations and Financial Condition.” The information is not
filed for purposes of the Securities Exchange Act of 1934 and is not deemed
incorporated by reference by any general statements incorporating by reference
this report or future filings into any filings under the Securities Act of 1933
or the Securities Exchange Act of 1934, except to the extent American Axle &
Manufacturing Holdings, Inc. specifically incorporates the information by
reference.
American
Axle & Manufacturing Reports
First
Quarter 2005 Financial Results
Detroit,
Michigan, April 29, 2005 -- American Axle & Manufacturing Holdings, Inc.
(AAM), which is traded as AXL on the NYSE, today reported sales and earnings for
the first quarter of 2005.
First
Quarter 2005 highlights
· |
First
quarter sales of $818.9 million
|
· |
19%
year-over-year decline in production volumes
|
· |
Non-GM
sales were 21% of total sales, totaling $169.2 million
|
· |
Net
earnings of $13.3 million or $0.26 per
share |
First
quarter earnings were $13.3 million or $0.26 per share. This compares to
earnings of $36.5 million or $0.66 per share in the first quarter of 2004. AAM’s
earnings in the first quarter of 2004 included the impact of a one-time charge
of $23.5 million or $0.28 per share related to debt refinancing and redemption
activities.
“This was a
very challenging quarter for AAM due to the impact of lower production levels
and higher steel and metallic material prices,” said AAM’s Co-Founder, Chairman
of the Board & CEO Richard E. Dauch. “Despite these tough industry
conditions, AAM remains focused on its operations to flawlessly execute thirteen
product and process launches during 2005. More importantly, AAM is continuing to
make significant investments in product, process and system technology to
further expand our product offerings, customer diversification and global
manufacturing presence.“
Net sales in
the first quarter of 2005 were $818.9 million as compared to $952.8 million in
the first quarter of 2004. Sales to non-GM customers for the quarter were $169.2
million and now represent 21% of AAM’s total sales. AAM
sales for the quarter reflect an estimated 19% year-over-year decline in its
customers’ production volumes for the major North American light truck programs
it currently supports. AAM’s content per vehicle in the quarter of $1,183 was
approximately the same as $1,182 in the first quarter of 2004.
Gross margin
in the first quarter of 2005 was 8.8% as compared to 14.3% in the first quarter
of 2004. Operating income was $25.7 million or 3.1% of sales in the quarter as
compared to $86.9 million or 9.1% of sales in the first quarter of 2004.
AAM’s
research and development spending (R&D) in the first quarter of 2005 was
$17.6 million as compared to $16.9 million in the first quarter of 2004. In
addition to supporting the 2005 calendar year launch of products supporting the
all-new HUMMER H3, Dodge Ram Power Wagon, Dodge Ram Mega Cab and vehicles for
Ssangyong Motor Corporation, AAM continues to invest in the development and
validation of products supporting rear wheel drive and all-wheel drive driveline
systems for passenger cars and crossover vehicles. Products supporting this
growth segment of the market, such as independent front drive axles (IFDA),
power transfer units (PTU) and rear drive modules (RDM) now represent
approximately 25% of AAM’s $1 billion new business backlog.
AAM defines
free cash flow to be net cash provided by (or used in) operating activities less
capital expenditures and dividends paid. AAM’s free cash flow in the first
quarter of 2005 was a use of $116.3 million. AAM’s free cash flow deficit of
$42.3 million in the first quarter of 2004 included a $36.3 million lump-sum
bonus payment to its hourly associates represented by the UAW in connection with
the ratification of the current four-year master agreement. It is normal for the
company to use cash in the first quarter due to seasonal differences in sales
activity.
Net cash
flow used in operating activities was $34.1 million in the first quarter of 2005
as compared to $4.4 million of cash provided by operating activities in the
first quarter of 2004. AAM’s working capital investment in accounts receivable
in the first quarter of 2005 reflects the impact of higher metal market
pass-throughs as compared to the first quarter of 2004. AAM’s inventories have
increased in the first quarter of 2005 versus the first quarter of 2004 due to
higher steel and metallic material prices, higher amounts of inventory in
transit associated with an expansion in global sourcing activities and higher
levels of on-hand raw material stocks to protect against supply
interruption.
Capital
spending in the first quarter of 2005 was $74.8 million as compared to $46.7
million for the same period in 2004. AAM’s quarterly cash dividend, which
commenced in the second quarter of 2004, was $7.4 million in the current
quarter.
AAM also
updated its full-year 2005 earnings outlook.
On January
13, 2005, AAM announced earnings guidance for 2005 based on its assumption that
its customers’ production volumes for the major North American light truck
programs it currently supports would be approximately 8% lower than in 2004. Due
to the impact of additional production cuts scheduled by its customers, AAM now
estimates that such production volumes will be down approximately 15% in 2005,
as compared to the prior year. Based on this revised production outlook and the
assumed continuation of steel and metallic material cost increases, AAM now
expects its earnings in 2005 to range from $1.40 to $1.55 per share.
On April 14,
2005, the Securities and Exchange Commission adopted a new rule that amends the
compliance dates for FASB Statement No. 123 (revised 2004), Share-Based
Payment (Statement No. 123R). As a result, AAM now intends to adopt
this accounting standard on January 1, 2006.
AAM also
announced revised estimates for its capital spending and free cash flow in 2005.
Due to additional productive capacity made available by lower anticipated
production volumes, changes in program timing requirements and the favorable
cost impact of various ongoing productivity initiatives, AAM now expects its
capital spending to range from $260 million - $280 million in 2005.
Reflecting
the impact of these revisions to earnings and capital spending estimates, AAM
now expects its free cash flow to be approximately break-even in 2005.
A conference
call to review AAM’s first quarter 2005 results is scheduled today at 10:00 a.m.
EDT. Interested participants may listen to the live conference call by logging
onto AAM's investor web site at http://investor.aam.com or calling (877)
278-1452 from the United States or (706) 643-3736 from outside the United
States. A replay will be available from 5:00 p.m. EDT on April 29, 2005 until
5:00 p.m. EDT May 6, 2005 by dialing (800) 642-1687 from the United States or
(706) 645-9291 from outside the United States. When prompted, callers should
enter conference reservation number 5189382.
Non-GAAP
Financial Information
In addition
to the results reported in accordance with accounting principles generally
accepted in the United States of America (GAAP) included within this press
release, AAM has provided certain information, which includes non-GAAP financial
measures. Such information is reconciled to its closest GAAP measure in
accordance with the Securities and Exchange Commission (SEC) rules and is
included in the attached supplemental data.
Management
believes that these non-GAAP financial measures are useful to both management
and its stockholders in their analysis of the Company's business and operating
performance. Management also uses this information for operational planning and
decision-making purposes.
Non-GAAP
financial measures are not and should not be considered a substitute for any
GAAP measure. Additionally, non-GAAP financial measures as presented by AAM may
not be comparable to similarly titled measures reported by other
companies.
AAM is a
world leader in the manufacture, engineering, design and validation of driveline
systems and related components and modules, chassis systems and metal-formed
products for light trucks, sport utility vehicles and passenger cars. In
addition to locations in the United States (in Michigan, New York and Ohio), AAM
also has offices or facilities in Brazil, China, England, Germany, India,
Japan, Mexico, Scotland and South Korea.
Certain
statements in this press release are forward-looking in nature and relate to
trends and events that may affect our future financial position and operating
results. Such statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. The terms “will,” “expect,”
“anticipate,” “intend,” “project,” and similar words or expressions are intended
to identify forward-looking statements. These statements speak only as of the
date of this press release. The statements are based on our current
expectations, are inherently uncertain, are subject to risks and should be
viewed with caution. Actual results and experience may differ materially from
the forward-looking statements as a result of many factors, including but not
limited to: reduced demand of our customers’ products (particularly light trucks
and SUVs produced by GM and DaimlerChrysler); reduced purchases of our products
by GM, DaimlerChrysler or other customers; supply shortages or price
fluctuations in raw materials, utilities or other operating supplies; our
ability to maintain satisfactory labor relations and avoid work stoppages; our
customers’ ability to maintain satisfactory labor relations and avoid work
stoppages; our ability to attract and retain key associates; our ability and our
customers’ ability to successfully launch new product programs; our ability to
respond to changes in technology or increased competition; adverse changes in
laws, government regulations or market conditions affecting our products or our
customers’ products (including the Corporate Average Fuel Economy regulations
and fuel costs); adverse changes in the economic conditions or political
stability of our principal markets (particularly North America, Europe, South
America and Asia); liabilities arising from legal proceedings to which we are or
may become a party or claims against us or our products; risks of noncompliance
with environmental regulations or risks of environmental issues that could
result in unforeseen costs at our facilities; availability of financing for
working capital, capital expenditures, R&D or other general corporate
purposes; 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 statements.
# #
#
For more
information:
Media
relations contact: |
|
Investor
relations contact: |
Carrie
L.P. Gray |
|
Christopher
M. Son |
Director,
Corporate
Relations |
|
Director,
Investor Relations |
(313)
758-4880 |
|
(313)
758-4814 |
|
|
|
Or visit the
AAM website at http://www.aam.com
AMERICAN
AXLE & MANUFACTURING HOLDINGS, INC. |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended |
|
|
|
March 31,
|
|
|
|
2005 |
|
2004 |
|
|
|
(In
millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
818.9 |
|
$ |
952.8 |
|
|
|
|
|
|
|
|
|
Cost
of goods sold |
|
|
746.6 |
|
|
816.4 |
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
72.3 |
|
|
136.4 |
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses |
|
|
46.6 |
|
|
49.5 |
|
|
|
|
|
|
|
|
|
Operating
income |
|
|
25.7 |
|
|
86.9 |
|
|
|
|
|
|
|
|
|
Net
interest expense |
|
|
(6.1 |
) |
|
(8.4 |
) |
Debt
refinancing and redemption costs |
|
|
- |
|
|
(23.5 |
) |
Other
income, net |
|
|
0.3 |
|
|
0.7
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
19.9 |
|
|
55.7 |
|
|
|
|
|
|
|
|
|
Income
taxes |
|
|
6.6 |
|
|
19.2
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
13.3 |
|
$ |
36.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
|
$ |
0.26 |
|
$ |
0.66 |
|
|
|
|
|
|
|
|
|
Diluted
shares outstanding |
|
|
51.1
|
|
|
55.3
|
|
AMERICAN
AXLE & MANUFACTURING HOLDINGS, INC. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December
31, |
|
|
|
2005 |
|
2004 |
|
|
|
(Unaudited) |
|
|
|
|
|
(In
millions) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
Cash
and cash equivalents |
|
$ |
3.3 |
|
$ |
14.4 |
|
Accounts
receivable, net |
|
|
367.2
|
|
|
334.9
|
|
Inventories,
net |
|
|
210.9 |
|
|
196.8
|
|
Prepaid
expenses and other |
|
|
49.7 |
|
|
39.1 |
|
Deferred income
taxes |
|
|
6.0 |
|
|
7.4 |
|
Total
current assets |
|
|
637.1 |
|
|
592.6
|
|
|
|
|
|
|
|
|
|
Property,
plant and equipment, net |
|
|
1,743.6
|
|
|
1,713.0
|
|
Deferred
income taxes |
|
|
8.1 |
|
|
6.8
|
|
Goodwill |
|
|
147.8
|
|
|
147.8
|
|
Other
assets and deferred charges |
|
|
75.5
|
|
|
78.6 |
|
Total
assets |
|
$ |
2,612.1 |
|
$ |
2,538.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
367.5 |
|
$ |
398.6 |
|
Other
accrued expenses |
|
|
151.8
|
|
|
181.9 |
|
Total
current liabilities |
|
|
519.3 |
|
|
580.5
|
|
|
|
|
|
|
|
|
|
Long-term
debt |
|
|
550.6 |
|
|
448.0
|
|
Deferred
income taxes |
|
|
116.5
|
|
|
114.5 |
|
Postretirement
benefits and other long-term liabilities |
|
|
460.1
|
|
|
440.3 |
|
Total
liabilities |
|
|
1,646.5
|
|
|
1,583.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
965.6
|
|
|
955.5
|
|
Total
liabilities and stockholders' equity |
|
$ |
2,612.1 |
|
$ |
2,538.8 |
|
AMERICAN
AXLE & MANUFACTURING HOLDINGS, INC. |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended |
|
|
|
March 31,
|
|
|
|
2005 |
|
2004 |
|
|
|
(In
millions) |
Operating
activities |
|
|
|
|
|
|
|
Net
income |
|
$ |
13.3 |
|
$ |
36.5 |
|
Depreciation
and amortization |
|
|
43.4 |
|
|
41.3 |
|
Other |
|
|
(90.8 |
) |
|
(73.4 |
) |
|
|
|
|
|
|
|
|
Net
cash provided by (used in) operating activities |
|
|
(34.1 |
) |
|
4.4
|
|
|
|
|
|
|
|
|
|
Purchases
of property, plant & equipment |
|
|
(74.8 |
) |
|
(46.7 |
) |
|
|
|
|
|
|
|
|
Net
cash used in investing activities |
|
|
(74.8 |
) |
|
(46.7 |
) |
|
|
|
|
|
|
|
|
Net
increase in long-term debt |
|
|
103.1 |
|
|
419.9 |
|
Redemption
of 9.75% Notes |
|
|
- |
|
|
(314.6 |
) |
Debt
issuance costs |
|
|
- |
|
|
(9.7 |
) |
Employee
stock option exercises |
|
|
2.2 |
|
|
3.1
|
|
Dividends
paid |
|
|
(7.4 |
) |
|
-
|
|
Purchase
of treasury stock |
|
|
- |
|
|
(63.0 |
) |
|
|
|
|
|
|
|
|
Net
cash provided by financing activities |
|
|
97.9 |
|
|
35.7 |
|
|
|
|
|
|
|
|
|
Effect
of exchange rate changes on cash |
|
|
(0.1
|
) |
|
0.2
|
|
|
|
|
|
|
|
|
|
Net
decrease in cash and cash equivalents |
|
|
(11.1 |
) |
|
(6.4 |
) |
|
|
|
|
|
|
|
|
Cash
and cash equivalents at beginning of period |
|
|
14.4
|
|
|
12.4
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents at end of period |
|
$ |
3.3 |
|
$ |
6.0 |
|
AMERICAN
AXLE & MANUFACTURING HOLDINGS, INC. |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
The
supplemental data presented below is a reconciliation of certain financial
measures which is intended |
to facilitate analysis of American Axle & Manufacturing
Holdings, Inc. business and operating performance. |
|
|
|
|
|
|
|
|
|
|
Earnings
before interest expense, income taxes and depreciation and amortization
(EBITDA)(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended |
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2005 |
|
2004 |
|
|
|
|
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
|
|
|
|
|
$ |
13.3 |
|
$ |
36.5 |
|
Interest
expense |
|
|
|
|
|
|
|
|
6.3 |
|
|
8.6 |
|
Income
taxes |
|
|
|
|
|
|
|
|
6.6
|
|
|
19.2 |
|
Depreciation
and amortization |
|
|
|
|
|
|
|
|
43.4 |
|
|
41.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
$ |
69.6 |
|
$ |
105.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
debt(b)
to capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December
31, |
|
|
|
|
|
|
|
|
|
|
2005 |
|
|
2004 |
|
|
|
|
|
|
|
|
|
(In
millions, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
debt |
|
|
|
|
|
|
|
$ |
550.6 |
|
$ |
448.0 |
|
Less:
cash and cash equivalents |
|
|
|
|
|
|
|
|
3.3 |
|
|
14.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
debt at end of period |
|
|
|
|
|
|
|
|
547.3 |
|
|
433.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
|
|
|
965.6
|
|
|
955.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
invested capital at end of period |
|
|
|
|
|
|
|
$ |
1,512.9 |
|
$ |
1,389.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
debt to capital(c) |
|
|
|
|
|
|
|
|
36.2 |
% |
|
31.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
We believe that EBITDA is a meaningful measure of performance as it is
commonly utilized by management and investors to analyze operating
performance and entity valuation. Our management, the investment community
and the banking institutions routinely use EBITDA, together with other
measures, to measure our operating performance relative to other Tier 1
automotive suppliers. EBITDA should not be construed as income from
operations, net income or cash flow from operating activities as
determined under GAAP. Other companies may calculate EBITDA
differently. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
Net debt is equal to total debt less cash and cash equivalents.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
Net debt to capital is equal to net debt divided by the sum of
stockholders' equity and net debt. We believe that net debt to capital is
a meaningful measure of financial condition as it is commonly utilized by
management, investors and creditors to assess relative capital structure
risk. Other companies may calculate net debt to capital
differently. |
AMERICAN
AXLE & MANUFACTURING HOLDINGS, INC. |
SUPPLEMENTAL
DATA (CONTINUED) |
(Unaudited) |
|
The
supplemental data presented below is a reconciliation of certain financial
measures which is intended |
to
facilitate analysis of American Axle & Manufacturing Holdings, Inc.
business and operating performance. |
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating cash flow and free cash flow(d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
2005 |
|
2004 |
|
|
|
|
|
|
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities |
|
|
|
|
|
|
|
|
|
|
$ |
(34.1 |
) |
$ |
4.4 |
|
Less:
purchases of property, plant & equipment |
|
|
|
|
|
|
|
|
|
|
|
(74.8 |
) |
|
(46.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating cash flow |
|
|
|
|
|
|
|
|
|
|
|
(108.9 |
) |
|
(42.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
dividends |
|
|
|
|
|
|
|
|
|
|
|
(7.4 |
) |
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free
cash flow |
|
|
|
|
|
|
|
|
|
|
$ |
(116.3 |
) |
$ |
(42.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-Tax
Return on Invested Capital (ROIC)(e) |
|
|
|
|
|
Trailing
Twelve |
|
|
|
Quarter
Ended |
|
|
Months
Ended |
|
|
|
|
|
|
|
|
|
|
December
31, |
|
|
March
31, |
|
|
March
31, |
|
|
|
|
2004 |
|
|
2004 |
|
|
2004 |
|
|
2005 |
|
|
2005 |
|
|
|
(In
millions, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
55.3 |
|
$ |
36.4 |
|
$ |
31.3 |
|
$ |
13.3 |
|
$ |
136.3 |
|
After-tax
net interest expense
(f) |
|
|
3.9 |
|
|
4.0 |
|
|
3.8 |
|
|
4.1 |
|
|
15.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-tax
return |
|
$ |
59.2 |
|
$ |
40.4 |
|
$ |
35.1 |
|
$ |
17.4 |
|
$ |
152.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
debt at end of period |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
547.3 |
|
Stockholder's
equity at end of period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
965.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invested
capital at end of period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,512.9
|
|
Invested
capital at beginning of period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,498.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
invested capital(g) |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,505.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-Tax
ROIC(h) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1 |
% |
|
(d)
We define net operating cash flow as net cash provided by operating
activities less purchases of property and equipment. Free cash flow is
defined as net operating cash flow less dividends. We believe net
operating cash flow and free cash flow are meaningful measures as they are
commonly utilized by management and investors to assess our ability to
generate cash flow from business operations to repay debt and return
capital to our stockholders. Net operating cash flow is also a key metric
used in our calculation of incentive compensation. Other companies may
calculate net operating cash flow and free cash flow
differently. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e)
We believe that ROIC is a meaningful overall measure of business
performance because it reflects the company's earnings performance
relative to its investment level. ROIC is also a key metric used in our
calculation of incentive compensation. Other companies may calculate ROIC
differently. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(f)
After-tax net interest expense is equal to tax effecting net interest
expense by the applicable effective income tax rate for each presented
quarter. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(g)
Average invested capital is equal to the average of beginning and ending
invested capital. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(h)
After-tax ROIC is equal to after-tax return divided by average invested
capital. |
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, hereunto
duly authorized.
AMERICAN
AXLE & MANUFACTURING HOLDINGS, INC.
|
|
|
Date: April
29, 2005 |
By: |
/s/ Thomas
L. Martin |
|
Thomas L. Martin |
|
Vice
President - Finance & |
|
Chief
Financial Officer |
|
(also
in the capacity of |
|
Chief
Accounting Officer) |