AAM Q3 sales and profits up, sale rumours denied
AAM sales in the third quarter of 2022 were up to US$1.54bn versus $1.21bn in Q3 2021.
Q3 sales were “favourably impacted” by the recent Tekfor acquisition and volume and mix, the supplier said in a statement.
Net income rose to $26.5m, or $0.22 per share, an improvement from the year ago net loss of $2.4m or $(0.02) per share.
Adjusted EBITDA was $198.4m, or 12.9% of sales, versus $183.2m (15.1%).
Updated outlook
The supplier is now targeting sales in the range of $5.75bn-$5.85bn versus $5.75bn-$5.95bn previously. Adjusted EBITDA is pegged lower at $745m-$765m versus the previous $790m-$830m.
AAM said in a statement: “In addition to normal production seasonality, we expect the fourth quarter operating environment to be similar to that experienced in the third quarter, including the continuation of higher than previously anticipated volatility in truck production.”
Separately, the commercial vehicle driveline specialist earlier dismissed media reports it was in sale talks.
“While our long-standing policy is to not publicly comment on market rumors and media speculation, we feel it is important to state that we are not engaged in any discussions to sell the company and that we are not otherwise for sale,” it said in a statement.
“In the ordinary course of executing on our strategic plan, we continuously monitor market conditions and assess industry developments and we regularly consider strategic opportunities that serve the best interests of the company (including our customers and associates) and its shareholders.”
No further comment would be forthcoming.
AAM sales in the third quarter of 2022 were up to US$1.54bn versus $1.21bn in Q3 2021.
Q3 sales were “favourably impacted” by the recent Tekfor acquisition and volume and mix, the supplier said in a statement.
Net income rose to $26.5m, or $0.22 per share, an improvement from the year ago net loss of $2.4m or $(0.02) per share.
Adjusted EBITDA was $198.4m, or 12.9% of sales, versus $183.2m (15.1%).
Updated outlook
The supplier is now targeting sales in the range of $5.75bn-$5.85bn versus $5.75bn-$5.95bn previously. Adjusted EBITDA is pegged lower at $745m-$765m versus the previous $790m-$830m.
AAM said in a statement: “In addition to normal production seasonality, we expect the fourth quarter operating environment to be similar to that experienced in the third quarter, including the continuation of higher than previously anticipated volatility in truck production.”
Separately, the commercial vehicle driveline specialist earlier dismissed media reports it was in sale talks.
“While our long-standing policy is to not publicly comment on market rumors and media speculation, we feel it is important to state that we are not engaged in any discussions to sell the company and that we are not otherwise for sale,” it said in a statement.
“In the ordinary course of executing on our strategic plan, we continuously monitor market conditions and assess industry developments and we regularly consider strategic opportunities that serve the best interests of the company (including our customers and associates) and its shareholders.”
No further comment would be forthcoming.
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