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AAM Reports Third Quarter 2013 Financial Results

               AAM Reports Third Quarter 2013 Financial Results

PR Newswire

DETROIT, Nov. 1, 2013

DETROIT, Nov. 1, 2013 /PRNewswire/ --American Axle & Manufacturing Holdings,
Inc. (AAM), which is traded as AXL on the NYSE, today reported its financial
results for the third quarter 2013.

Third Quarter 2013 Results

  oThird quarter 2013 sales of $820.8 million, up 16.8% on a year-over-year
    basis
  oNon-GM sales grew 18.1% on a year-over-year basis to $234.7 million
  oGross profit of $125.3 million, or 15.3% of sales
  oOperating income of $67.5 million, or 8.2% of sales
  oNet income of $31.6 million, or $0.41 per share
  oEBITDA (earnings before interest, taxes, depreciation and amortization) of
    $113.4 million or approximately 13.8% of sales

AAM's net income in the third quarter of 2013 was $31.6 million, or $0.41 per
share. This compares to a net loss of $8.1 million, or $0.11 per share in the
third quarter of 2012.

In the third quarter of 2013, AAM's results reflect the impact of a net charge
of $5.3 million related to the acceleration of expense for stock-based
compensation and other benefits earned and vested due to the passing of our
Co-Founder and Executive Chairman of the Board of Directors. AAM's third
quarter of 2013 results also include a charge of approximately $0.5 million
for the proposed settlement of a National Labor Relations Board proceeding
related to the closure of our Detroit Manufacturing Complex and Cheektowaga
Manufacturing Facility in 2012.

In the third quarter of 2012, AAM's results reflected the impact of $10.1
million (or $0.14 per share) of debt refinancing and redemption cost and $3.2
million (or $0.04 per share) of restructuring costs related to the closure of
our Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility.

"AAM's financial results in the third quarter of 2013 were highlighted by
solid sales growth, improved profit margin performance and positive free cash
flow," said David C. Dauch, AAM's Chairman, President & Chief Executive
Officer. "For the remainder of 2013, we are focused on successfully launching
AAM's industry-first EcoTrac^TM Disconnecting All Wheel Drive system, as well
as continuing to deliver positive financial results by executing our aligned
business strategy, which is built upon the foundational principles of quality,
operational excellence and technology leadership."

Net sales in the third quarter of 2013 increased approximately 16.8% on a
year-over-year basis to $820.8 million as compared to $702.9 million in the
third quarter of 2012. Non-GM sales were up 18.1% in the quarter to $234.7
million as compared to $198.8 million in the third quarter of 2012.

AAM's net sales in the first nine months of 2013 increased over 8.0% to $2.38
billion as compared to $2.19 billion in the first nine months of 2012. Non-GM
sales in the first nine months of 2013 increased approximately 9.9% on a
year-over-year basis to $646.6 million as compared to $588.5 million in the
first nine months of 2012.

AAM's content-per-vehicle is measured by the dollar value of its product sales
supporting our customers' North American light truck and SUV programs. In the
third quarter of 2013, AAM's content-per-vehicle increased to $1,560 as
compared to $1,466 in the third quarter of 2012 and $1,554 in the second
quarter of 2013.

AAM's gross profit in the third quarter of 2013 increased 38.1% on a
year-over-year basis to $125.3 million as compared to $90.7 million in the
third quarter of 2012. Gross margin was 15.3% in the third quarter of 2013 as
compared to 12.9% in the third quarter of 2012.

AAM's gross profit for the first nine months of 2013 increased 11.4% on a
year-over-year basis to $351.8 million as compared to $315.7 million in the
first nine months of 2012. Gross margin was 14.8% in the first nine months of
2013 as compared to 14.4% in the first nine months of 2012.

AAM's SG&A expense in the third quarter of 2013 was $57.8 million, or 7.0% of
sales, as compared to $60.6 million, or 8.6% of sales, in the third quarter of
2012. AAM's R&D expense in the third quarter of 2013 was $23.6 million as
compared to $31.4 million in the third quarter of 2012.

In the first nine months of 2013, AAM's SG&A expense was $177.9 million,
approximately the same as the first nine months of 2012. AAM's R&D expense
decreased $10.9 million in the first nine months of 2013 on a year-over-year
basis to $79.4 million as compared to $90.3 million in the first nine months
of 2012.

In the third quarter of 2013, AAM's operating income more than doubled to
$67.5 million as compared to $30.1 million in the third quarter of 2012.
Operating margin was 8.2% in the third quarter of 2013 as compared to 4.3% in
the third quarter of 2012.

AAM's operating income in the first nine months of 2013 increased 26.2% to
$173.9 million as compared to $137.8 million in the first nine months of
2012. Operating margin was 7.3% in the first nine months of 2013 as compared
to 6.3% in the first nine months of 2012.

In the third quarter of 2013, AAM's net income was $31.6 million or $0.41 per
share. This compares to a net loss of $8.1 million or $0.11 per share in the
third quarter of 2012.

AAM defines EBITDA to be earnings before interest, taxes, depreciation and
amortization. In the third quarter of 2013, AAM's EBITDA was $113.4 million
or 13.8% of sales. In the first nine months of 2013, AAM's EBITDA was $291.1
million or 12.3% of sales.

AAM defines free cash flow to be net cash provided by (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 provided by operating activities for the third quarter of 2013 was
$69.1 million. Capital spending, net of proceeds from the sale of property,
plant and equipment and the sale-leaseback of equipment, for the third quarter
of 2013 was $48.3 million. Reflecting the impact of this activity, AAM
generated free cash flow of $20.8 million for the third quarter of 2013.

Net cash provided by operating activities for the first nine months of 2013
was $102.3 million. Capital spending, net of proceeds from the sale of
property, plant and equipment and the sale-leaseback of equipment, for the
first nine months of 2013 was $148.9 million. Reflecting the impact of this
activity, AAM's free cash flow was a use of $46.6 million in the first nine
months of 2013.

A conference call to review AAM's third quarter 2013 results is scheduled
today at 10:00 a.m. 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 (855) 681-2072 from the United States or
(973) 200-3383 from outside the United States. A replay will be available
from 2:00 p.m. ET on November 1, 2013 until 5:00 p.m. ET November 8, 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 85771783.

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. Such statements are "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995 and relate to
trends and events that may affect our future financial position and operating
results. The terms such as "will," "may," "could," "would," "plan," "believe,"
"expect," "anticipate," "intend," "project," and similar words or expressions,
as well as statements in future tense, are intended to identify
forward-looking statements. 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 continuing market weakness in the Euro-zone;
reduced purchases of our products by General Motors Company (GM), Chrysler
Group LLC (Chrysler) or other customers; reduced demand for our customers'
products (particularly light trucks and sport utility vehicles (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; 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); 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; availability of
financing for working capital, capital expenditures, research and development
(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; 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.

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 OPERATIONS
(Unaudited)
                            Three months ended        Nine months ended
                            September 30,             September 30,
                            2013          2012        2013          2012
                            (in millions, except per  (in millions, except per
                            share data)               share data)
Net sales                   $  820.8      $  702.9    $  2,376.0    $ 2,194.2
Cost of goods sold          695.5         612.2       2,024.2       1,878.5
Gross profit                125.3         90.7        351.8         315.7
Selling, general and        57.8          60.6        177.9         177.9
administrative expenses
Operating income            67.5          30.1        173.9         137.8
Interest expense            (30.0)        (25.3)      (87.9)        (72.7)
Investment income           0.1           0.2         0.4           0.6
Other income (expense)
Debt refinancing and        —             (10.1)      (11.2)        (10.1)
redemption costs
Other, net                  0.1           (2.2)       (1.4)         (4.0)
Income (loss) before income 37.7          (7.3)       73.8          51.6
taxes
Income tax expense          6.1           0.9         9.1           4.8
Net income (loss)           31.6          (8.2)       64.7          46.8
Net loss attributable to    —             0.1         —             1.0
noncontrolling interests
Net income (loss)           $  31.6       $  (8.1)    $  64.7       $ 47.8
attributable to AAM
Diluted earnings (loss) per $  0.41       $  (0.11)   $  0.84       $ 0.63
share
Diluted shares outstanding  77.0          74.9        76.7          75.2



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
                                       Three months ended   Nine months ended
                                       September 30,        September 30,
                                       2013     2012        2013     2012
                                       (in millions)
Net income (loss)                      $ 31.6   $ (8.2)     $ 64.7   $ 46.8
Other comprehensive income (loss), net
of tax
Defined benefit plans, net of tax      15.1     (102.7)     15.7     (117.2)
Foreign currency translation           2.5      4.9         (14.3)   (7.1)
adjustments
Change in derivatives                  (0.6)    2.2         (2.2)    7.6
Other comprehensive income (loss )     17.0     (95.6)      (0.8)    (116.7)
Comprehensive income (loss)            48.6     (103.8)     63.9     (69.9)
Net loss attributable to               —        0.1         —        1.0
noncontrolling interests
Foreign currency translation
adjustments related to noncontrolling —        —           —        0.2
interests
Comprehensive income (loss)            $ 48.6   $ (103.7)   $ 63.9   $ (69.1)
attributable to AAM



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
                                                   September30,  December31,
                                                   2013           2012
                                                   (in millions)
ASSETS
Assets
Cash and cash equivalents                          $  118.6       $  62.4
Accounts receivable, net                           596.9          463.4
Inventories, net                                   251.5          224.3
Prepaid expenses and other current assets          124.7          122.0
Total current assets                               1,091.7        872.1
Property, plant and equipment, net                 1,041.8        1,009.7
Deferred income taxes                              360.0          366.1
Goodwill                                           156.5          156.4
GM postretirement cost sharing asset               251.2          259.7
Other assets and deferred charges                  217.3          202.0
Total assets                                       $  3,118.5     $  2,866.0
LIABILITIES AND STOCKHOLDERS' DEFICIT
Liabilities and Stockholders' Deficit
Accounts payable                                   $  485.0       $  396.1
Accrued compensation and benefits                  102.0          84.9
Deferred revenue                                   14.5           17.2
Accrued expenses and other current liabilities     102.6          102.6
Total current liabilities                          704.1          600.8
Long-term debt                                     1,572.6        1,454.1
Deferred revenue                                   76.7           82.2
Postretirement benefits and other long-term        811.9          849.7
liabilities
Total liabilities                                  3,165.3        2,986.8
Total stockholders' deficit                        (46.8)         (120.8)
Total liabilities and stockholders' deficit        $  3,118.5     $  2,866.0



AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                                        Three months ended  Nine months ended
                                        September 30,       September 30,
                                        2013      2012      2013      2012
                                        (in millions)       (in millions)
Operating Activities
Net income (loss)                       $ 31.6    $ (8.2)   $ 64.7    $ 46.8
Adjustments to reconcile net income
(loss) to net cash provided by
(used in) operating activities
Depreciation and amortization           45.7      38.7      129.4     112.4
Other                                   (8.2)     (251.7)   (91.8)    (355.8)
Net cash provided by (used in)          69.1      (221.2)   102.3     (196.6)
operating activities
Investing Activities
Purchases of property, plant &          (56.7)    (50.8)    (178.2)   (143.7)
equipment
Proceeds from sale of property, plant   0.9       1.0       5.8       2.2
& equipment
Proceeds from sale-leaseback of         7.5       —         23.5      —
equipment
Net cash used in investing activities   (48.3)    (49.8)    (148.9)   (141.5)
Financing Activities
Net increase in long-term debt          25.1      404.3     115.8     397.0
Debt issuance costs                     (6.3)     (10.1)    (12.9)    (10.1)
Purchase of noncontrolling interest     —         —         —         (4.0)
Employee stock option exercises         —         —         0.8       0.1
Purchase of treasury stock              (0.3)     —         (0.4)     (5.9)
Net cash provided by financing          18.5      394.2     103.3     377.1
activities
Effect of exchange rate changes on      0.4       0.6       (0.5)     0.8
cash
Net increase in cash and cash           39.7      123.8     56.2      39.8
equivalents
Cash and cash equivalents at beginning  78.9      85.2      62.4      169.2
of period
Cash and cash equivalents at end of     $ 118.6   $ 209.0   $ 118.6   $ 209.0
period



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             Nine months ended
                      September 30,                  September 30,
                      2013             2012          2013          2012
                      (in millions)                  (in millions)
Net income (loss)     $   31.6         $  (8.1)      $  64.7       $  47.8
attributable to AAM
Interest expense      30.0             25.3          87.9          72.7
Income tax expense    6.1              0.9           9.1           4.8
Depreciation and      45.7             38.7          129.4         112.4
amortization
EBITDA                113.4            56.8          291.1         237.7
Debt refinancing and  —                10.1          11.2          10.1
redemption costs
Other special
charges, curtailment
gains and             5.8              3.2           5.8           34.4
restructuring
costs^(b)
ADJUSTED EBITDA       $   119.2        $  70.1       $  308.1      $  282.2



Net debt^(c) to capital
                                        September30, 2013  December31, 2012
                                        (in millions, except percentages)
Total debt                              $    1,572.6        $   1,454.1
Less: cash and cash equivalents         118.6               62.4
Net debt at end of period               1,454.0             1,391.7
Stockholders' deficit                   (46.8)              (120.8)
Total invested capital at end of period $    1,407.2        $   1,270.9
Net debt to capital^(d)                 103.3          %    109.5         %



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.
Free Cash Flow^(e)
                          Three months ended           Nine months ended
                          September 30,                September 30,
                          2013         2012            2013         2012
                          (in millions)                (in millions)
Net cash provided by
(used in) operating       $  69.1      $  (221.2)      $  102.3     $ (196.6)
activities
Less: Purchases of
property, plant &
equipment, net
of proceeds from sale of  (48.3)       (49.8)          (148.9)      (141.5)
property, plant &
equipment and
sale-leaseback of
equipment
Free cash flow            $  20.8      $  (271.0)      $  (46.6)    $ (338.1)

________________________________________

(a) We define EBITDA to be earnings before interest, taxes, depreciation and
amortization. For 2013, Adjusted EBITDA is defined as EBITDA excluding the
impact of debt refinancing and redemption costs and other special charges and
restructuring costs. For 2012, 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. 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) Special charges of $5.8 million for the three and nine months ended
September 30, 2013 primarily relate to a net charge of $5.3 million related
to the acceleration of expense for stock-based compensation and other benefits
earned and vested due to the passing of our Co-Founder and Executive Chairman
of the Board of Directors and $0.5 million for the proposed settlement of a
National Labor Relations Board proceeding related to the closure of our
Detroit Manufacturing Complex and Cheektowaga Manufacturing Facility.Special
charges and restructuring costs of $3.2 million for three months ended
September 30, 2012 and $34.4 million for the nine months ended September 30,
2012 primarily related to the closure of our Detroit Manufacturing Complex and
Cheektowaga Manufacturing Facility. This special charge activity included
$28.7 million of expense related to pension and postretirement benefits to be
provided to certain eligible UAW associates as a result of the Detroit
Manufacturing Complex and Cheektowaga Manufacturing Facility plant closures,
$27.5 million of expense primarily related to asset redeployment and other
restructuring costs associated with the closures of Detroit Manufacturing
Complex and Cheektowaga Manufacturing Facility and a $21.8 million
postretirement benefit curtailment gain recorded in the first quarter of 2012.

(c) Net debt is equal to total debt less cash and cash equivalents.

(d) 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.

(e) We define free cash flow as net cash provided by (used in) operating
activities less capital expenditures net 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.

SOURCE American Axle & Manufacturing Holdings, Inc.

Website: http://www.aam.com