American Axle & Manufacturing Announces New Business Backlog in Excess of $1 Billion
13 Gennaio 2005 - 4:30PM
PR Newswire (US)
American Axle & Manufacturing Announces New Business Backlog in
Excess of $1 Billion Provides earnings outlook for 2005 DETROIT,
Jan. 13 /PRNewswire-FirstCall/ -- American Axle & Manufacturing
Holdings, Inc. (AAM), which is traded as AXL on the NYSE, today
announced that it has increased its backlog of new business by
nearly $500 million to more than $1 billion in future annual sales.
AAM's new business backlog benefits from the incremental expansion
of its existing light truck and SUV product lines to support new
programs and derivative models. AAM's new business backlog also
reflects the company's successful efforts to expand its product
offerings by adding passenger car and crossover vehicle
applications utilizing independent front drive axles (IFDA), rear
drive modules (RDM) and independent rear suspension modules (RSM).
AAM New Business Backlog Highlights: * AAM's total new business
backlog is in excess of $1 billion. * 30% of AAM's new business
backlog incorporates AAM's newest technology for passenger cars and
crossover vehicles. * $100 million of AAM's new business backlog
relates to product programs outside of North America. * AAM has
been awarded two new contracts by Asian OEMs. One of these awards
represents AAM's first opportunity to provide front and rear axle
modules to a foreign customer for a major North American product
platform. AAM will also provide IFDA and RDM to Ssangyong Motor
Corporation for multiple new vehicle programs beginning in the 2006
model year. * AAM has won a contract with a major global OEM to
provide a complete driveline system utilizing IFDA, RDM and RSM for
a rear-wheel-drive passenger car program planned for at least two
separate geographic markets. AAM will launch approximately
two-thirds of its new business backlog in the 2005, 2006 and 2007
calendar years. The balance of the business will be launched
between 2008 and 2010. "AAM's cost competitiveness, world-class
quality, warranty and delivery performance are major
differentiators for us in today's global automotive supply market,"
said American Axle & Manufacturing Co-Founder, Chairman of the
Board & CEO, Richard E. Dauch. "This significant increase in
our new business backlog confirms that our ability to develop
innovative advanced technology products, with integrated
electronics and efficient packaging, is helping to expand our
customer base and served markets." AAM values its new business
backlog based on production volume estimates and program design
direction provided by its customers. The sales value of these
awards will depend on product volumes, program launch timing and
foreign currency exchange. AAM also announced its 2005 earnings
outlook. AAM's 2005 earnings outlook is based on its assumption
that its customers' production volumes for the major North American
light truck programs it currently supports will be approximately 8%
lower than in 2004. AAM's 2005 earnings outlook also assumes that
the cost of steel and other purchased metal market commodities will
continue to increase in 2005. In 2005, AAM will adopt FASB
Statement No. 123 (as revised in 2004) and recognize book expense
related to stock-based compensation granted to its executives. AAM
currently estimates that this accounting change will reduce diluted
earnings per share by approximately $0.20 in 2005. Taking all of
these factors into account, including the impact of the accounting
change for stock-based compensation, AAM expects its 2005 earnings
to be approximately $2.40 to $2.55 per share. AAM's capital
spending will increase in 2005 to approximately $315 to $320
million. A significant portion of AAM's 2005 capital spending plan
will support the 2006 and 2007 model year launch of the GMT 900
program and other major customer programs in AAM's $1 billion new
business backlog. Reflecting the impact of its earnings estimate,
the increase in capital investment and an anticipated reduction in
its ability to defer taxes, AAM is targeting approximately $25
million of free cash flow in 2005. "2005 will be a challenging year
for the entire domestic automotive industry. The same is true for
AAM," said Mr. Dauch. "Our task in 2005 is to keep focused on our
long-term strategic goals of further developing our product
offerings, customer diversification and global manufacturing
presence to prepare for significant future profitable growth." 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 its 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
contained in this press release are "forward-looking statements"
and relate to the Company's plans, projections or future
performance. Such statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and 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: adverse changes in the economic conditions or
political stability of our principal markets (particularly North
America, Europe and South America); reduced demand of our
customers' products, particularly light trucks and SUVs produced by
GM and DaimlerChrysler's heavy- duty Dodge Ram full-size pickup
trucks, or the Dodge Ram program; reduced purchases of our products
by GM, DaimlerChrysler or other customers; our ability and our
customers' ability to successfully launch new product programs; our
ability to respond to changes in technology or increased
competition; supply shortages or price fluctuations in raw
materials, utilities or other operating supplies; our ability to
attract and retain key associates; our ability to maintain
satisfactory labor relations and avoid work stoppages; risks of
noncompliance with environmental regulations or risks of
environmental issues that could result in unforeseen costs at our
facilities; liabilities arising from legal proceedings to which we
are or may become a party or claims against us or our products;
availability of financing for working capital, capital
expenditures, research and development or other general corporate
purposes; adverse changes in laws, government regulations or market
conditions affecting our products or our customers' products
(including the Corporate Average Fuel Economy regulations); 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 statements. For more information ... 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/ DATASOURCE: American Axle
& Manufacturing Holdings, Inc. CONTACT: Carrie L.P. Gray,
Director, Corporate Relations, +1-313-758-4880, , or Christopher M.
Son, Director, Investor Relations, +1-313-758-4814, , both of
American Axle & Manufacturing Holdings, Inc. Web site:
http://www.aam.com/ Company News On-Call:
http://www.prnewswire.com/comp/033813.html
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