American Axle and Manufacturing Holdings Inc. AXL reported second-quarter 2015 earnings of 75 cents per share that surpassed the Zacks Consensus Estimate of 72 cents. Moreover, earnings per share increased from 67 cents recorded in the second quarter of 2014. The company reported net income of $58.6 million, compared with $52.2 million in the prior-year quarter.
Revenues went up 6% to a record high of $1 billion in the reported quarter from $946.9 million a year ago. However, the top line missed the Zacks Consensus Estimate of $1.02 billion.
American Axle’s content-per-vehicle – dollar value of product sales supporting customers’ North American light truck and sport utility vehicle (“SUV”) programs – dipped 0.2% to $1,637 from $1,640 in second-quarter 2014. The company’s non-General Motors GM sales increased 15.1% to $343.1 million from $298.1 million in the year-ago quarter.
Gross profit increased to $164.5 million (16.4% of sales) in second-quarter 2015 from $149 million (15.7% of sales) in the year-ago quarter. Meanwhile, operating income improved to $93.9 million (9.4% of sales) from $87.5 million (9.2% of sales) a year ago.
Financial Position
American Axle had cash and cash equivalents of $301.3 million as of Jun 30, 2015, up 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-half 2015 was $154.3 million, compared with $82.4 million in first-half 2014. Net capital spending of the company was $91.3 million, compared with $95.4 million in first-half 2014. Therefore, American Axle had free cash flow of $63 million in first-half 2015, compared with a negative free cash flow of $13 million in first-half 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 carries a Zacks Rank #3 (Hold).
Better-ranked automobile stocks include Tesla Motors, Inc. TSLA and Pep Boys – Manny, Moe & Jack PBY. Pep Boys currently sports a Zacks Rank #1 (Strong Buy), while Tesla carries a Zacks Rank #2 (Buy).
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