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American Axle & Manufacturing Holdings, Inc. Business Report FY2009
Business Highlights
Financial Overview |
(in million dollars) |
| FY2009 | FY2008 | Rate of change (%) | Factors | |
| Sales | 1,521 | 2,109 | (27.9) |
1) |
| Gross profit(loss) | (31.1) | (865.2) | - | - |
Factors
1)
-Sales in 2009, as compared to 2008, reflect a decrease of approximately 22% in production volumes for the major full-size truck and SUV programs the Company currently supports for GM and Chrysler and a decrease of approximately 76% in products supporting GM’s mid-size light truck and SUV programs. These decreases in sales in 2009 reflect the adverse impact of extended production shutdowns at GM and Chrysler, which is estimated at $304.3 million. The decrease in sales also reflects general adverse economic conditions, the difficult market conditions in the automotive industry and the cancellation of GM’s mid-size SUV program.
-Content-per-vehicle (as measured by the dollar value of its products supporting GM’s North American light truck platforms and the Dodge Ram program) increased to $1,403 in 2009 as compared to $1,391 in 2008 and $1,293 in 2007. The increase in 2009 as compared to 2008 is primarily due to mix shifts favoring full-size trucks and SUV programs and an increase in the recognition of deferred revenue related to agreements with GM, partially offset by a reduction in metal market adjustments.
-The 4WD/AWD penetration rate was 64.1% in 2009 as compared to 64.8% in 2008 and 63.6% in 2007.
Restructuring
-Its total global served market has grown to approximately $34 billion with an enhanced focus on driveline applications for passenger cars, crossover vehicles and commercial vehicles.-The Company has more than doubled global installed capacity at manufacturing facilities in Mexico, Brazil, India, Thailand, China and Poland.
-The Company has reduced the fully-loaded labor cost by more than 50% from approximately $73.48 per hour all-in cost in 2Q 2008 to less than $34 on a blended average basis.
Contracts
Its new and incremental business backlog was approximately 1.0 billion dollars as of February 5, 2010.| - Approximately 70% for global end use markets (other than N.A.) | |
| - Approximately 80% sourced to the Company's facilities outside the U.S. | |
| - Approximately 45% for AWD / RWD passenger cars and CUVs | |
| - Approximately $700 million launching in 2010 - 2012 | |
| - Strategic wins with new customers including: | |
| EMack Truck, Inc. launched in second half of 2009 (2H 2009) (bare spindle assemblies) ETata Motors launched in 2H 2009 (axles for light duty truck program) EVW launched in 2H 2009 (axles for 2010 model year global light vehicle program) ENissan (rear axles and driveshafts for 2010 light vehicle program) EBrilliance China Automotive Co., Ltd. (IRDAs for 2010 CUV) EMNAL (axles for a 2010 commercial vehicle program) EChery Automobile Co., Ltd. (driveshafts for a future model year CUV) |
|
R&D
R&D Expenditure |
(in million dollars) |
| FY2009 | FY2008 | FY2007 | |
| Overall | 67.0 | 85.0 | 80.4 |
-Product development includes power transfer units, transfer cases, driveline and transmission differentials, multi-piece driveshafts, constant velocity joints, torque transfer devices, chassis modules and front and rear drive axles. The Company continues to focus on electronic integration in its existing and future products and to support the development of hybrid and electric vehicle systems.
Investment Activities
Capital Expenditure |
(in million dollars) |
| FY2009 | FY2008 | FY2007 | |
| Overall | 141.5 | 140.2 | 186.5 |
-In 2009, the capital spending primarily supported the future launch of new vehicle programs within its new business backlog and the expansion of its global manufacturing footprint.
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