- American Axle & Manufacturing Holdings Inc AXL reported first-quarter FY22 sales growth of nearly 1% year-on-year to $1.44 billion, beating the consensus of $1.35 billion.
- The company noted the semiconductor chip shortage unfavorably impacted its Q1 sales.
- Adjusted EPS of $0.19 beat the analyst consensus of $0.02.
- The gross profit fell 17.7% Y/Y to $186.8 million, with the margin contracting 290 basis points to 13%.
- Selling, general and administrative expenses fell 4.3% Y/Y to $86.1 million.
- The operating margin was 5%, and operating income for the quarter fell 26.3% to $70.3 million.
- Adjusted EBITDA of $196.1 million fell 25.4% Y/Y, with the margin compressing 470 basis points to 13.7%.
- Cash provided by operating activities totaled $68.5 million with an adjusted free cash flow of $53.9 million.
- The company held $529.9 million in cash and equivalents as of March 31, 2022.
- Outlook: American Axle reduced the top end of FY22 sales outlook. It sees sales of $5.6 billion - $5.8 billion (prior view $5.6 billion - $5.9 billion), against the consensus of $5.69 billion.
- The company has cut FY22 adjusted EBITDA to $785 million - $830 million from $800 million - $875 million.
- The company estimates FY22 adjusted free cash flow of $300 million - $350 million.
- Price Action: AXL shares are trading lower by 2.83% at $6.87 on the last check Friday.
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