On October 30, American Axle and Manufacturing Holdings released its third-quarter financial report. Coronavirus (COVID-19) pandemic caused a loss of approximately US$87 million.
In the third quarter, Coronavirus (COVID-19) pandemic continued to have a negative impact on the global supply chain. Axle Holdings’ sales fell 16% year-on-year to US$1.41 billion; net profit was US$117 million, compared with a net loss of 1.24 in the same period in 2019. At that time, it was mainly affected by pre-tax deductions of US$225 million and the United Automobile Union (UAW) workers’ strike at General Motors; adjusted profit rose nearly 12% year-on-year to US$297 million; adjusted free cash flow year-on-year It rose 35% to US$217 million.
David Dauch, CEO of American Axle Holdings, said in the financial statement: "Although we are facing many challenges this year, our performance illustrates the recovery of global automobile production and the benefits of our cost-cutting measures. It also reflects the company's dynamic market The ability to adjust business under the environment and achieve stable performance."
The company also updated its 2020 performance expectations, predicting that its annual sales will be approximately 4.6 billion U.S. dollars, compared with previous estimates of 5.8 billion to 6 billion U.S. dollars; adjusted free cash flow will be 220 million to 235 million U.S. dollars. On the day of the earnings report, the company's share price rose 1.4% to $6.72 per share.
In September of this year, the Colfor plant of American Axle Holdings in Ohio suffered a fire, which may affect some of GM's business. Because last year, GM's axle business accounted for 37%. Chris May, the chief financial officer of Axle, said in a meeting with investors that the company's net expenditure in the fire was $8.6 million. He said: "We will continue to assess the damage and related impact caused by the fire."
The company's net sales in the first quarter fell 22% year-on-year to US$1.34 billion; revenue in the second quarter fell nearly 70% from US$1.7 billion in the same period last year to US$515 million.
The total sales of US Axle's automotive business in 2019 were US$6.53 billion, ranking 41st in the Automotive News Global Top 100 Parts Suppliers list.