American Axle & Manufacturing said revenue in the second quarter of 2022 was $1.44 billion, compared to $1.28 billion in the second quarter of 2021.
Year-on-year, Q2 sales were favorably impacted by improvements in supply chain, volume and mix, and the acquisition of Tekfor, the supplier said.
“In addition, metals market transfers to customers and foreign exchange drove revenue of approximately $27 million in the quarter.”
Net income rose to $22.9 million, or $0.19 per share, from $16 million and $0.13 per share in the second quarter of 2021.
Adjusted earnings per share were $0.22 versus $0.29.
“AAM delivered solid second quarter financial results and cash flow conversion while operating in a volatile industrial environment,” said Chairman and CEO David Dauch.
Adjusted EBITDA was $195.1 million, or 13.6% of sales, compared to $222.6 million/17.3%.
AAM targets revenue of $5.75 to $5.95 billion versus $5.6 to 5.8 billion previously, Adjusted EBITDA between $790 and $830 million versus $785 to $830 million previously and Adjusted Free Cash Flow between 300 and 350 million dollars; this assumes capital expenditures of 3.5%-4% of sales.
The updated financial outlook reflects the acquisition of Tekfor Group effective June 1, 2022 with “cost synergies on track for 2023”.
The supplier expects North American light vehicle production of approximately 14.3-14.7 million units by 2022 and “the current operating environment”.