DETROIT, Jan. 11 /PRNewswire-FirstCall/ -- American Axle &
Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the NYSE,
today announced that 1,473 UAW represented associates agreed to participate
in AAM's special attrition program.
AAM's special attrition program was offered to all UAW represented
associates at AAM's master agreement facilities. AAM's master agreement
facilities are located in Detroit, Michigan; Three Rivers, Michigan;
Buffalo, New York; Tonawanda, New York; and Cheektowaga, New York.
Under this special attrition program, AAM offered a range of early
retirement incentives, buy-outs and educational opportunities to its
associates. Associates who retired as part of this program will retain all
vested pension and postretirement benefits. Associates who accepted a
buy-out will retain vested pension benefits but forfeited other
postretirement benefits.
Approximately 265 retirement-eligible associates participated in this
program, while an additional 1,208 associates elected one of the buyout
options at these facilities. More than 1,300 of these associates have left
the company before year-end 2006.
"The special attrition program accelerates our ability to realign our
hourly workforce with actual and projected production and market
conditions," said AAM Co-Founder, Chairman, & CEO Richard E. Dauch. "The
structural cost benefit to AAM resulting from the special attrition program
and other related restructuring actions should exceed $100 million
annually. This will enhance our ability to invest in the continuing
expansion of AAM's product portfolio, served markets, customer base and
global manufacturing footprint."
On October 4, 2006, AAM estimated that it would incur special charges
of as much as $150 - $250 million in 2006 for the special attrition program
and other restructuring activities. AAM currently estimates that the total
cost of the special attrition program will approximate $140 million. This
includes an estimated charge of $10 million for pension and postretirement
benefit curtailment and special termination benefits. This includes costs
associated with salaried workforce reductions and supplemental unemployment
benefits estimated to be payable to UAW represented associates who are
expected to be permanently idled through the end of the current collective
bargaining agreement in February 2008, AAM now expects to incur special
charges in a range of $175 - $200 million for these items in 2006.
In addition, AAM also announced today that it plans to idle a portion
of its U.S. production capacity dedicated to the mid-size light truck
product range. As a result of these plans and other capacity
rationalization initiatives, AAM expects to incur asset impairment charges
of as much as $200 million in the fourth quarter of 2006.
AAM will be presenting at the Auto Analyst of New York (AANY) Detroit
Auto Conference on Thursday, January 11, 2007 at Noon EDT. AAM will webcast
the presentation through AAM's investor web site at
http://investor.aam.com. The presentation will be made by AAM's Co-Founder,
Chairman & CEO Richard E. Dauch.
AAM has also scheduled a conference call to review its fourth quarter
and full year results on February 2, 2007 at 10:00 a.m. EDT. Interested
participants may listen to the live conference call by logging onto AAM's
investor web site at http://investor.aam.com or calling (877) 278-1452 from
the United States or (706) 643-3736 from outside the United States.
AAM is a world leader in the manufacture, engineering, design and
validation of driveline and drivetrain systems and related components and
modules, chassis systems and metal-formed products for light trucks, sport
utility vehicles and passenger cars. In addition to locations in the United
States (in Michigan, New York and Ohio), AAM also has offices or facilities
in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South
Korea and the United Kingdom.
Certain statements contained in this press release are "forward-looking
statements" and relate to the Company's plans, projections, strategies or
future performance. Such statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995 and are
based on our current expectations, are inherently uncertain, are subject to
risks and should be viewed with caution. Actual results and experience may
differ materially from the forward-looking statements as a result of many
factors, including but not limited to: adverse changes in the economic
conditions or political stability of our principal markets (particularly
North America, Europe and South America); reduced demand of our customers'
products or volume reductions, particularly for light trucks and SUVs
produced by GM and DaimlerChrysler's heavy-duty Dodge Ram full-size pickup
trucks, or the Dodge Ram program; work stoppages at GM or DaimlerChrysler
or a key supplier to GM or DaimlerChrysler; our ability to achieve cost
reductions through accelerated attrition programs; reduced purchases of our
products by GM, DaimlerChrysler or other customers; our ability and our
customers' ability to successfully launch new product programs; our ability
to respond to changes in technology or increased competition; supply
shortages or price fluctuations in raw materials, utilities or other
operating supplies; our ability to maintain satisfactory labor relations
and avoid work stoppages; risks of noncompliance with environmental
regulations or risks of environmental issues that could result in
unforeseen costs at our facilities; liabilities arising from legal
proceedings to which we are or may become a party or claims against us or
our products; availability of financing for working capital, capital
expenditures, research and development or other general corporate purposes,
including our ability to comply with financial covenants; adverse changes
in laws, government regulations or market conditions affecting our products
or our customers' products (including the Corporate Average Fuel Economy
regulations); our ability to attract and retain key associates; and other
unanticipated events and conditions that may hinder our ability to compete.
For additional discussion, see "Item 1A. Risk Factors" in our most recent
annual report on Form 10-K and quarterly reports on Form 10-Q. It is not
possible to foresee or identify all such factors and we assume no
obligation to update any forward-looking statements or to disclose any
subsequent facts, events or circumstances that may affect their accuracy.
For more information...
Renee Rogers
Manager, Corporate Communications
& Media Relations
(313) 758-4882
renee.rogers@aam.com
Christopher M. Son
Director, Investor Relations
(313) 758-4814
chris.son@aam.com
Or visit the AAM website at http://www.aam.com
SOURCE American Axle & Manufacturing Holdings, Inc.
 back to top
Related links:
http://www.aam.com
http://investor.aam.com
http://www.prnewswire.com/comp/033813.html /
CONTACT:
Renee Rogers, Manager, Corporate
Communications & Media Relations, +1-313-758-4882, or
renee.rogers@aam.com, or Christopher M. Son, Director, Investor
Relations, +1-313-758-4814, or chris.son@aam.com, both of
American Axle & Manufacturing Holdings, Inc.
|
