American Axle & Manufacturing Holdings, Inc. Business Report FY ended Dec. 2015
Business Highlights
Financial Overview |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | Rate of change (%) | Factors | |
| Net Sales | 3,903.1 | 3,696.0 | 5.6 |
1) |
| Operating Income | 358.1 | 267.6 | 33.8 | 2) |
Factors
1) Net Sales
-The Company's sales in the fiscal year ended December 31, 2015 increased by 5.6% to USD 3,903.1 million. The increase in sales was primarily due to an approximately 5% increase in production volumes for North American light truck and SUV programs for GM and FCA. These gains were partially offset by a reduction of metal prices passed to the customers as well as negative foreign currency exchange effects.
2) Operating Income
-The Company's operating income for the fiscal year ended December 31, 2015 was USD 358.1 million, a 33.8% from the previous fiscal year. Factors for the increase include increased sales as well as an increased profit margin on the sales versus a comparatively smaller increase in selling, general, and administrative expenses.
Contracts
-The Company announced that it has been selected as the target supplier to provide axles and driveshafts for GM's next generation full-size truck program under GM's Strategic Sourcing Process (SSP). The Company expects to provide approximately 75% of the light-duty axles, 100% of the heavy-duty axles and 100% of the rear steel driveshafts for GM's next generation full-size truck program. (From a press release on July 31, 2015)
-The Company has approximately USD 725 million of new and incremental business backlog from 2016 to 2018.
- Approximately 75% of the backlog is related to AWD and RWD applications for passenger cars and crossover vehicles.
- Approximately 60% of the backlog is for customers other than GM.
- Over 50% of the backlog is for end markets outside the U.S.
-Programs launched in 2015 include the following:
- Front and rear drive axles for a global passenger car program for Jaguar Land Rover manufactured from the Company's Swidnica Manufacturing Facility in Poland
- Rear axles for a global light truck program for Ford manufactured from the Company's Rayong Manufacturing Facility in Thailand
- Rear axles for a full-size pickup truck program for Nissan manufactured from the Company's Guanajuato Manufacturing Complex in Mexico.
Outlook
-The Company anticipates its net sales for the fiscal year ending December 31, 2016 to be approximately USD 4.0 billion.
R&D Expenditure |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| Overall | 113.9 | 103.9 | 103.4 |
R&D Facilities
-The Company has 12 global engineering development centers across eight countries.
-In 2015, the Company began the move-in phase of its Advanced Technology Development Center in Detroit.
R&D Activities
-The focus of the Company's R&D investment includes the following:
- Electronic integration in existing and future products to improve their performance
- Development of hybrid and electric vehicle systems
- Development of products which enhance fuel efficiency, reduce emissions, or improve NVH, power density, or traction control
Capital Expenditure |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| Overall | 193.5 | 206.5 | 251.9 |
-The capital spending primarily supported significant global program launches within new and incremental business backlog, as well as the upgrades to ERP systems.
-The Company expects that its capital expenditure in the fiscal year ending December 31, 2016 will be approximately 6% of its sales.