American Axle and Manufacturing Holdings Inc. AXL reported first-quarter 2015 earnings of 68 cents per share that surpassed the Zacks Consensus Estimate of 58 cents. Moreover, earnings per share increased from 44 cents recorded in the first quarter of 2014. The company reported net income of $53.2 million, compared with $33.6 million in the prior-year quarter.
Revenues went up 12.8% to $969.1 million in the reported quarter from $858.8 million a year ago. Moreover, the top line surpassed the Zacks Consensus Estimate of $964 million.
American Axle’s content-per-vehicle – dollar value of product sales supporting customers’ North American light truck and sport utility vehicle (“SUV”) programs – increased 1.3% to $1,676 from $1,655 in first-quarter 2014. The company’s non-General Motors Company GM sales increased 14% to $328.9 million from $287.8 million in the year-ago quarter.
Gross profit increased to $152.8 million (15.8% of sales) in first-quarter 2015 from $121.9 million (14.2% of sales) in the year-ago quarter. Meanwhile, operating income improved to $84.3 million (8.7% of sales) from $64.8 million (7.5% of sales) a year ago.
Financial Position
American Axle had cash and cash equivalents of $205.7 million as of Mar 31, 2015, down from $249.2 million as of Dec 31, 2014. Long-term debt of $1.5 billion was in line with the end 2014 level.
Cash flow from operations in first-quarter 2015 was $6.4 million, compared with cash outflow of $55.5 million in first-quarter 2014. Net capital spending of the company was $43.5 million, compared with $40 million in first-quarter 2014. Therefore, American Axle had negative free cash flow of $37.1 million in first-quarter 2015, compared with negative free cash flow of $95.5 million in first-quarter 2014.
American Axle is a leading supplier of driveline systems, modules and components for the light vehicle market. The company makes axles, driveshaft and chassis components for light trucks, SUVs and passenger cars.
Zacks Rank
Currently, American Axle holds a Zacks Rank #2 (Buy).
Other well-ranked automobile stocks include PACCAR Inc. PCAR and Wabash National Corp. WNC, both carrying a Zacks Rank #2.
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