AAM Reports First Quarter 2013 Financial Results

               AAM Reports First Quarter 2013 Financial Results

PR Newswire

DETROIT, May 3, 2013

DETROIT, May 3, 2013 /PRNewswire/ --American Axle & Manufacturing Holdings,
Inc. (AAM), which is traded as AXL on the NYSE, today reported its financial
results for the first quarter of 2013.

First Quarter 2013 Results

  oFirst quarter 2013 sales of $755.6 million
  oNon-GM sales were $188.1 million
  oGross profit of $104.3 million, or 13.8% of sales
  oOperating income of $44.7 million, or 5.9% of sales
  oNet income of $7.3 million, or $0.10 per share
  oAAM's quarterly results reflect the impact of $11.3 million (or $0.13 per
    share) of debt refinancing and redemption costs
  oAdjusted EBITDA (earnings before interest, taxes, depreciation and
    amortization excluding the impact of debt refinancing and redemption
    costs) of $86.6 million or approximately 11.5% of sales

AAM's net income in the first quarter of 2013 was $7.3 million, or $0.10 per
share as compared to net income of $51.2 million, or $0.68 per share, in the
first quarter of 2012. In the first quarter of 2013, AAM's results reflect
the impact of $11.3 million (or $0.13 per share) of debt refinancing and
redemption costs.

"AAM's financial results in the first quarter of 2013 reflect our commitment
to deliver improved profitability and launch performance globally," said AAM's
President and Chief Executive Officer, David C. Dauch. "While we continue to
take actions to improve our operating and financial performance, we remain
focused on flawlessly launching several major programs in 2013. These include
products supporting GM's next-generation full-size pickup truck and SUV
program, the RAM Heavy Duty pickup truck program, as well as AAM's EcoTrac™
Disconnecting All Wheel Drive system."

Dauch also stated, "In the first quarter of 2013, we took another step in
improving AAM's balance sheet strength. The debt refinancing activities
successfully completed in the quarter were highlighted by the issuance of $400
million of 6.25% Senior Notes due 2021. This supports AAM's future
operational and financial flexibility, and improves our capital structure."

Net sales in the first quarter of 2013 were approximately $755.6 million as
compared to $751.5 million in the first quarter of 2012. Sales in the first
quarter of 2013 reflect the adverse impact of approximately $12.5 million
related to the labor strike at General Motors' Rayong factory in Thailand.

Non-GM sales were $188.1 million in the first quarter of 2013 as compared to
$193.6 million in the first quarter of 2012.

AAM's content-per-vehicle is measured by the dollar value of our products
supporting our customers' North American light truck and SUV programs. In the
first quarter of 2013, AAM's content-per-vehicle increased to $1,504 as
compared to $1,475 in the first quarter of 2012.

AAM's gross profit in the first quarter of 2013 was $104.3 million or 13.8% of
sales as compared to $139.2 million or 18.5% of sales in the first quarter in
2012.

AAM's SG&A spending in the first quarter of 2013 was $59.6 million, or 7.9% of
sales, as compared to $61.8 million, or 8.2% of sales, in the first quarter of
2012. AAM's R&D spending in the first quarter of 2013 was $28.5 million as
compared to $30.1 million in the first quarter of 2012.

In the first quarter of 2013, AAM's operating income was $44.7 million or 5.9%
of sales as compared to $77.4 million or 10.3% of sales in the first quarter
of 2012.

In the first quarter of 2013, AAM's net income was $7.3 million or $0.10 per
share as compared to $51.2 million or $0.68 per share in the first quarter of
2012.

AAM defines Adjusted EBITDA to be earnings before interest, taxes,
depreciation and amortization excluding the impact of debt refinancing and
redemption costs. In the first quarter of 2013, AAM's Adjusted EBITDA was
$86.6 million or 11.5% of sales.

AAM defines free cash flow to be net cash used in operating activities less
capital expenditures net of proceeds from the sale of property, plant and
equipment and the sale-leaseback of equipment.

Net cash used in operating activities for the first quarter 2013 was $26.8
million. Capital spending, net of proceeds from the sale of property, plant
and equipment and the sale-leaseback of equipment, for the first quarter 2013
was $43.9 million. Reflecting the impact of this activity, AAM's free cash
flow was a use of $70.7 million in the first quarter 2013.

A conference call to review AAM's first quarter 2013 results is scheduled
today at 10:00 AM ET. 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
(973) 200-3383 from outside the United States. A replay will be available
from 5:00 p.m. ET on May 3, 2013 until 5:00 p.m. ET May 10, 2013 by dialing
(855) 859-2056 from the United States or (404) 537-3406 from outside the
United States. When prompted, callers should enter conference reservation
number 32371382.

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 Securities and Exchange Commission 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 and drivetrain systems and related components and modules,
chassis systems and metal-formed products for light trucks, sport utility
vehicles, passenger cars, crossover vehicles and commercial vehicles. In
addition to locations in the United States (Michigan, Ohio, Pennsylvania and
Indiana), AAM also has offices or facilities in Brazil, China, Germany, India,
Japan, Luxembourg, Mexico, Poland, Scotland, South Korea, Sweden and Thailand.

In this earnings release, we make statements concerning our expectations,
beliefs, plans, objectives, goals, strategies, and future events or
performance. Forward-looking statements should not be read as a guarantee of
future performance or results, and will not necessarily be accurate
indications of the times at, or by, which such performance or results will be
achieved. Forward-looking statements are based on information available at the
time those statements are made and/or management's good faith belief as of
that time with respect to future events and are subject to risks and may
differ materially from those expressed in or suggested by the forward-looking
statements. Important factors that could cause such differences include, but
are not limited to: global economic conditions, including the impact of the
debt crisis in the Euro-zone; reduced purchases of our products by GM,
Chrysler or other customers; reduced demand for our customers' products
(particularly light trucks and SUVs produced by GM and Chrysler); 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; our ability to respond to changes in
technology, increased competition or pricing pressures; 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; liabilities
arising from warranty claims, product recall or field actions, product
liability and legal proceedings to which we are or may become a party; our
ability to achieve the level of cost reductions required to sustain global
cost competitiveness; our ability to attract new customers and programs for
new products; price volatility in, or reduced availability of, fuel; 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 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; risks inherent in our
international operations (including adverse changes in political stability,
taxes and other law changes, potential disruptions of production and supply,
and currency rate fluctuations); availability of financing for working
capital, capital expenditures, R&D or other general corporate purposes,
including 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; 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); changes in liabilities arising from pension and other
postretirement benefit obligations; our ability to attract and retain key
associates; risks of noncompliance with environmental laws and regulations or
risks of environmental issues that could result in unforeseen costs at our
facilities; 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; our ability to consummate and integrate acquisitions
and joint ventures; 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.

For more information...

Christopher M. Son
Director, Investor Relations,
Corporate Communications and Marketing
(313) 758-4814
chris.son@aam.com

Liz Ventimiglia
Manager, Investor Relations
(313) 758-4635
liz.ventimiglia@aam.com

Or visit the AAM website at www.aam.com.





AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


                                          Three months ended
                                          March 31,
                                          2013                   2012
                                          (in millions, except per share data)
Net sales                                 $     755.6            $   751.5
Cost of goods sold                        651.3                  612.3
Gross profit                              104.3                  139.2
Selling, general and administrative       59.6                   61.8
expenses
Operating income                          44.7                   77.4
Interest expense                          (29.1)                 (24.0)
Investment income                         0.1                    0.3
Other income (expense)
Debt refinancing and redemption costs     (11.3)                 —
Other income (expense), net               0.5                    (1.2)
Income before income taxes                4.9                    52.5
Income tax expense (benefit)              (2.4)                  2.2
Net income                                7.3                    50.3
Net loss attributable to noncontrolling   —                      0.9
interests
Net income attributable to AAM            $     7.3              $   51.2
Diluted earnings per share                $     0.10             $   0.68
Diluted shares outstanding                           76.2               75.0





AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


                                                            Three months ended
                                                            March 31,
                                                            2013        2012
                                                            (in millions)
Net income                                                  $  7.3      $ 50.3
Other comprehensive income (loss), net of tax
Defined benefit plans                                       (1.1)       (14.0)
Foreign currency translation adjustments                    4.9         10.7
Change in derivatives                                       0.5         5.6
Other comprehensive income                                  4.3         2.3
Comprehensive income                                        11.6        52.6
Net loss attributable to noncontrolling interests           —           0.9
Foreign currency translation adjustments attributable to    —           0.2
noncontrolling interests
Comprehensive income attributable to AAM                    $  11.6     $ 53.3





AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


                                                       March 31,  December 31,

                                                       2013       2012
                                                       (in millions)
ASSETS
Assets
Cash and cash equivalents                              $ 100.8    $  62.4
Accounts receivable, net                               535.3      463.4
Inventories, net                                       240.6      224.3
Prepaid expenses and other current assets              128.4      122.0
Total current assets                                   1,005.1    872.1
Property, plant and equipment, net                     1,043.5    1,009.7
Deferred income taxes                                  365.6      366.1
Goodwill                                               156.4      156.4
GM postretirement cost sharing asset                   253.8      259.7
Other assets and deferred charges                      205.2      202.0
Total assets                                           $ 3,029.6  $  2,866.0
LIABILITIES AND STOCKHOLDERS' DEFICIT
Liabilities and Stockholders' Deficit
Accounts payable                                       $ 454.6    $  396.1
Accrued compensation and benefits                      83.9       84.9
Deferred revenue                                       16.0       17.2
Accrued expenses and other current liabilities         96.6       102.6
Total current liabilities                              651.1      600.8
Long-term debt                                         1,570.2    1,454.1
Deferred revenue                                       78.4       82.2
Postretirement benefits and other long-term            837.8      849.7
liabilities
Total liabilities                                      3,137.5    2,986.8
Total stockholders' deficit                            (107.9)    (120.8)
Total liabilities and stockholders' deficit            $ 3,029.6  $  2,866.0





AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


                                                            Three months ended
                                                            March 31,
                                                            2013       2012
                                                            (in millions)
Operating activities
Net income                                                  $  7.3     $ 50.3
Adjustments to reconcile net income to net cash used in
operating activities
Depreciation and amortization                               41.3       36.7
Other                                                       (75.4)     (158.5)
Net cash used in operating activities                       (26.8)     (71.5)
Investing Activities
Purchases of property, plant & equipment                    (47.9)     (44.5)
Proceeds from sale of property, plant & equipment           0.1        0.9
Proceeds from sale-leaseback of equipment                   3.9        —
Net cash used in investing activities                       (43.9)     (43.6)
Financing Activities
Net increase in long-term debt                              114.7      66.8
Debt issuance costs                                         (6.2)      —
Purchase of noncontrolling interest                         —          (4.0)
Employee stock option exercises                             —          0.1
Purchase of treasury stock                                  —          (5.9)
Net cash provided by financing activities                   108.5      57.0
Effect of exchange rate changes on cash                     0.6        1.7
Net increase (decrease) in cash and cash equivalents        38.4       (56.4)
Cash and cash equivalents at beginning of period            62.4       169.2
Cash and cash equivalents at end of period                  $  100.8   $ 112.8



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

SUPPLEMENTAL DATA

(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) and adjusted EBITDA^(a)
                            Three Months Ended March 31,
                            2013                         2012
                            (in millions)
Net income attributable to  $       7.3                  $      51.2
AAM
Interest expense            29.1                         24.0
Income tax expense          (2.4)                        2.2
(benefit)
Depreciation and            41.3                         36.7
amortization
EBITDA                      75.3                         114.1
Debt refinancing and        11.3                         —
redemption costs
Other special charges,
curtailment gains and       —                            (5.3)
restructuring costs^(e)
ADJUSTED EBITDA             $       86.6                 $      108.8



Net debt^(b) to capital


                                        March31, 2013  December31, 2012
                                        (in millions, except percentages)
Total debt                              $  1,570.2      $   1,454.1
Less: cash and cash equivalents         100.8           62.4
Net debt at end of period               1,469.4         1,391.7
Stockholders' deficit                   (107.9)         (120.8)
Total invested capital at end of period $  1,361.5      $   1,270.9
Net debt to capital^(c)                 107.9       %   109.5         %





Free Cash Flow^(d)


                                                  Three Months Ended March 31,
                                                  2013            2012
                                                  (in millions)
Net cash used in operating activities             $   (26.8)      $  (71.5)
Less: Purchases of property, plant & equipment,
net of proceeds from sale of property, plant &    (43.9)          (43.6)
equipment and sale-leaseback of equipment
Free cash flow                                    $   (70.7)      $  (115.1)

________________________________________

(a)We define EBITDA to be earnings before interest, taxes, depreciation and
amortization. Adjusted EBITDA is defined as EBITDA excluding the impact of
curtailment gains, restructuring costs and special charges related to the
closure of the Detroit Manufacturing Complex and Cheektowaga Manufacturing
Facility, and debt refinancing and redemption costs, to the extent
applicable. We believe that EBITDA and adjusted EBITDA are meaningful
measures of performance as they are 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 and adjusted 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 and adjusted 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' deficit 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.

(d) We define free cash flow as net cash used in operating activities less
capital expendituresnet of proceeds from the sale of property, plant and
equipment and the sale-leaseback of equipment. For purposes of calculating
free cash flow, AAM excludes the impact of purchase buyouts of leased
equipment, if any. We believe free cash flow is a meaningful measure as it is
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. Free cash flow is also a key metric used in our
calculation of incentive compensation. Other companies may calculate free
cash flow differently.

(e) Special charges, curtailment gains and restructuring costs for the three
months ended March 31, 2012 reflect the favorable impact of postretirement
benefit curtailment gains of $21.8 million (or $0.29 per share); these gains
were partially offset by special charges and restructuring costs of $16.5
million (or $0.22 per share), primarily related to the closure of our Detroit
Manufacturing Complex and Cheektowaga Manufacturing Facility.

SOURCE American Axle & Manufacturing Holdings, Inc.

Website: http://www.aam.com