American Axle & Manufacturing Holdings (AAM) reported its financial results for the first quarter of 2016.
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AM's net income in the first quarter of 2016 was $61.1 million, or $0.78 per share, as compared to net income of $53.2 million, or $0.68 per share, in the first quarter of 2015.
"Our strong first quarter financial results position AAM to achieve our full year 2016 financial targets," said David C. Dauch, AAM's chairman and chief executive officer.
"As we look forward to the remainder of 2016, we remain focused on supporting the launch of programs in our new business backlog and advancing AAM's product technology to drive long-term profitable growth and shareholder value."
AAM's sales in the first quarter of 2016 were $969.2 million as compared to $969.1 million in the first quarter of 2015. Non-GM sales were $323.2 million in the first quarter of 2016 as compared to $328.9 million in the first quarter of 2015.
AAM's content-per-vehicle is measured by the dollar value of its product sales supporting our customers' North American light truck and SUV programs. In the first quarter of 2016, AAM's content-per-vehicle was $1,611 as compared to $1,676 in the first quarter of 2015.
AAM's gross profit in the first quarter of 2016 increased $21.2 million to $174.0 million, or 18.0% of sales, as compared to $152.8 million, or 15.8% of sales, in the first quarter of 2015.
AAM's SG&A spending in the first quarter of 2016 was $75.6 million, or 7.8% of sales, as compared to $68.5 million, or 7.1% of sales, in the first quarter of 2015. AAM's R&D spending in the first quarter of 2016 was $30.9 million as compared to $27.3 million in the first quarter of 2015.
AAM defines EBITDA to be earnings before interest, income taxes, depreciation and amortization.
In the first quarter of 2016, AAM's EBITDA was $149.8 million, or 15.5% of sales, as compared to $137.5 million, or 14.2% of sales, in the first quarter of 2015.
AAM defines free cash flow to be net cash provided by operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment.
Net cash provided by operating activities for the first quarter of 2016 was $26.2 million. Capital spending, net of proceeds from the sale of property, plant and equipment, for the first quarter of 2016 was $50.0 million.
Reflecting the impact of this activity, AAM's free cash flow was a use of $23.8 million for the first quarter of 2016.
The board authorized a share repurchase program of up to $100 million of AAM's common shares through December 31, 2018 as part of AAM's overall capital allocation strategy. ■