Ahead Of American Axle & Manufacturing Q4 Results

(RTTNews) - Auto Parts maker American Axle & Manufacturing Holdings Inc. (AXL) continues to demonstrate the ability to profitably grow while operating and generating positive cash flows.

It also continues to meet and exceed the stringent quality standards and warranty metrics that are demanded by customers, year-over-year, while providing the highest level of quality performance in the industry.

For fiscal 2015, the company now sees sales at $3.9 billion. Also, the company raised its 2015 EBITDA margin target by 25 basis points to a range of 14.5% - 14.75% of sales, and confirmed its free cash flow target to be about $175 million.

Looking forward to fiscal 2016, the company said it will sustain its focus on organically growing its business and reducing debt through positive free cash flow generation. In addition, the company will continue to assess strategic opportunities that will complement its core strengths, supplement diversification strategies and be accretive while providing future profitable growth prospects.

The company designs, engineers, validates, and manufactures driveline and drivetrain systems, and related components and chassis modules for the automotive industry in the United States, Canada, Mexico, South America, Asia, Europe, and internationally.

Fourth-quarter of fiscal 2015 results are scheduled to be released before the bell on Friday, February 12. Analysts polled by Thomson Reuters are estimating earnings of $0.68 per share on revenue of $979.59 million for the quarter. Analysts' estimate typically exclude certain special items.

In the previous quarter, the company reported net income of $60.9 million or $0.78 per share compared to $44.0 million or $0.57 per share in the third quarter of 2014.

Net sales in the third quarter of 2015 increased 2.2% on a year-over-year basis to $971.6 million as compared to $950.8 million in the third quarter of 2014. Non-GM sales were up 8.4% in the quarter to $321.6 million as compared to $296.8 million in the third quarter of 2014.

"AAM's financial results in the third quarter of 2015 reflect strong operating cash flow generation and profitability driven by solid production volumes across many of our major product programs supporting the North American light vehicle segment and continued operational execution," said AAM's Chairman & Chief Executive Officer, David Dauch.

Further, the company remains committed to improving its capital structure while leveraging AAM's technology leadership to develop innovative solutions that will allow it to profitably grow while exploring strategic growth opportunities.