[Gen-AI Analysis] American Axle & Manufacturing Holdings, Inc. Business Report FY2011 - MarkLines Automotive Information & Gen-AI Platform

American Axle & Manufacturing Holdings, Inc. Business Report FY2011

Business Highlights

Financial Overview

(in million dollars)

	FY2011	FY2010	Rate of change (%)	Factors
Sales	2,585.0	2,283.0	13.2	1)
Gross profit(loss)	455.1	401.7	13.3	-

Factors
1)
-Sales in 2011, as compared to 2010, reflect an increase of approximately 7.5% in production volumes for the major North American light truck and SUV programs the Company currently supports.

-The content-per-vehicle (as measured by the dollar value of the products supporting their customers' North American light truck and SUV programs) increased to $1,487 in 2011 as compared to $1,441 in 2010 and $1,403 in 2009. The increase in 2011 as compared to 2010 is primarily due to mix shifts favoring the next generation of heavy-duty trucks for GM and higher metal market pass throughs.

-4WD/AWD penetration rate was 63.0% in 2011 as compared to 64.2% in 2010 and 64.1% in 2009.

Joint Ventures

-The Company announced the expansion of its existing Chinese joint venture with Hefei Automobile Axle Co., Ltd. (HAAC), a subsidiary of the JAC Group (Anhui Jianghuai Automotive Group Co., Ltd.) to include 100% of HAAC's light and medium commercial axle business. The existing joint venture, Hefei AAM Automotive Driveline & Chassis System Co., Ltd. currently supplies rear beam axles, rear drive modules (RDM), power transfer units (PTU) and suspension corners for China independent brand passenger cars, SUVs and MPVs. By adding the light and medium duty commercial axle business, this expanded joint venture will supply front and rear beam axles to Chinese light truck manufacturers, including JAC and BAIC Foton. The joint venture is expected to commence operations in December 2011. (From a press release on December 1, 2011)

Acquisitions

-The Company announced that it has assumed full ownership of the AAM Sona Axle Private Limited Joint Venture (AAM Sona Axle) in India. AAM Sona Axle, previously a joint venture between AAM and Sona Koyo Steering Systems Ltd. manufactures and sells light truck, passenger car and SUV axle assemblies for the India market. (From a press release on January 7, 2011)

Plant Closure

-The Company announced its plan to close its Detroit Manufacturing Complex, Michigan, U.S. and Cheektowaga manufacturing facility, New York, U.S.. Detroit manufacturing complex manufactures front axles, rear axles and steering linkages, and Cheektowaga facility specializes in the manufacturing of net-shaped gears. (From a press release on October 28, 2011)

R&D

R&D Expenditure

(in million dollars)

	FY2011	FY2010	FY2009
Overall	113.6	82.5	67.0

-The 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 to advance their performance.
-The Company also continues to support the development of hybrid and electric vehicle systems.
-Special focus is also placed on the development of products and systems that provide its customers with efficiency fuel economy and emissions reduction advancements.

Investment Activities

Capital Expenditure

(in million dollars)

	FY2011	FY2010	FY2009
Overall	163.1	108.3	137.7

-In 2011, the capital spending primarily supported its significant global program launches in 2011 and 2012 within the Company's new business backlog.

Investment Outside U.S.A.

<Thailand>
-The Company announced the opening of its Rayong Manufacturing Facility, located in the Hemaraj Eastern Seaboard Industrial Estate in the Rayong Province of Thailand. Products manufactured at the facility include front axles, rear axles; and driveshafts. Rayong Manufacturing Facility is a manufacturing plant that occupies approximately 125,000 square feet of manufacturing space, with an additional 13,000 square feet dedicated to administration. Currently, 195 associates are employed at the facility. When fully operational, the facility will have approximately 275 engineering and manufacturing associates. (From a press release on September 9, 2011)