Q2 2024 American Axle & Manufacturing Holdings Inc Earnings Call Transcript
Key Points
- American Axle & Mfg Holdings Inc (AXL) reported second-quarter sales of $1.63 billion, up from $1.57 billion in the same period last year.
- Adjusted EBITDA for the second quarter was $208 million, representing 12.8% of sales, indicating strong operational performance.
- The company raised its full-year sales guidance to a range of $6.1 billion to $6.3 billion, up from the previous range of $6.05 billion to $6.35 billion.
- American Axle & Mfg Holdings Inc (AXL) secured new business contracts, including supplying components for a global European OEM's modular vehicle platform and helical drive gears for a luxury European OEM's future EV program.
- The company was named one of Newsweek's greatest workplaces for women in 2024, highlighting its commitment to a diverse and inclusive work environment.
- The company experienced higher-than-anticipated downtime near the end of the second quarter, which could impact future operational stability.
- Adjusted free cash flow guidance remains unchanged at $200 million to $240 million, indicating no expected improvement in cash flow despite higher sales and EBITDA guidance.
- Net interest expense remains high at $41.8 million for the second quarter, although it has decreased slightly from the previous year.
- The effective tax rate is elevated, expected to be approximately 45% to 50%, driven by higher profitability and valuation allowances related to interest expense deduction limitations in the US.
- The company faces challenges with the EV market, including re-scoped, delayed, or canceled projects, impacting future growth opportunities.
Good morning, my name is Gary and I will be your conference facilitator today. At this time, I would like to welcome everyone to the American Axle & Manufacturing second quarter 2024 earnings conference call. (Operator Instructions) As a reminder, today's call is being recorded.
I would now like to turn the call over to Mr. David Lim, Head of Investor Relations. Please go ahead, Mr. Lim.
Thank you, Gary, and good morning. I'd like to welcome everyone who is joining us on AAM's second quarter earnings call. Earlier this morning, we released our second quarter of 2024 earnings announcement. You can access this announcement on the investor relations page of our website, www.aam.com, and through the PR Newswire services. You can also find supplemental slides for this conference call on the investor page or our website as well. To listen to a replay of this call, you can dial 1-877-344-7529, replay access
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