Announces Increase in New Business Backlog
DETROIT, Jan. 17 /PRNewswire-FirstCall/ -- American Axle &
Manufacturing Holdings, Inc. (AAM), which is traded as AXL on the NYSE,
today announced that it will continue its role as driveline supplier for
the next generation of GM's full-size trucks.
AAM's sales of driveline components relating to GM's full-size pick-ups
and SUVs represent more than half of AAM's annual sales.
While GM has not yet finalized product definitions and other pertinent
engineering details, AAM expects the scope and magnitude of AAM's role on
the successor program to be substantially the same as on the existing
program.
"We are extremely pleased that General Motors has recognized AAM's
exceptional capabilities in the design, engineering, testing, validation
and manufacturing of premier driveline systems and selected us for this
critical program," said AAM's Co-Founder, Chairman and Chief Executive
Officer, Richard E. Dauch. "AAM's continued emphasis on product innovation,
superior engineering and design, as well as world-class quality, warranty,
delivery, and launch performance is attracting significant new business in
our expanding global market. Our worldwide team is dedicated to the
application of AAM's expertise in these areas to further develop
high-efficiency axle technology for this and other new customer programs."
2008-2012 New Business Backlog
AAM also announced that its backlog of new and incremental business
launching from 2008 through 2012 has been increased to $1.3 billion in
future annual sales.
AAM measures its new and incremental business backlog ("new business
backlog") by the estimated annual sales value of agreements with its
customers to provide axle or other driveline or drivetrain products for
future product programs, as well as incremental content or volume awards on
existing programs, including customer requested engineering changes. AAM's
new business backlog may be impacted by various assumptions such as
production volume estimates, changes in program launch timing and
fluctuation in foreign currency exchange rates.
AAM's new business backlog reflects the company's successful efforts to
expand its product portfolio by adding all-wheel-drive applications for
passenger cars and crossover vehicles, expanded electronics integration and
new drivetrain components such as transfer cases and power transfer units.
Recent new business wins include the following:
-- On October 30, 2007, AAM announced the formation of a new joint venture
(JV) in India (AAM Sona Axle Private Limited). The JV will provide
axles to Tata Motors for a light duty truck program beginning in the
second half of 2008.
-- AAM has earned an order from Mahindra International Limited (MIL) to
provide driving heads in India for a commercial vehicle program. MIL
is a joint venture involving Mahindra & Mahindra Limited from India and
International Truck & Engine Corporation (ITEC) from the U.S.
-- AAM has earned its first major award from Volkswagen AG to supply the
rear driveline system for a new global light vehicle program launching
in 2009.
-- AAM has earned its first award from Chery Automobile Co., Ltd. to
produce rear drive modules (RDM) for a 2010 model-year crossover
vehicle.
Other highlights of AAM's $1.3 billion new business backlog include:
-- Approximately 75% of the new business backlog has been sourced to AAM's
non-U.S. facilities. These awards will accelerate the expansion of
AAM's manufacturing facilities in Mexico, South America, Asia and
Europe. These awards will also lead to the construction of new
facilities in India and Thailand in 2008.
-- Approximately half of the new business backlog relates to awards
supporting rear-wheel-drive and all-wheel-drive passenger car and
crossover vehicle applications. These awards relate to 10 different
product programs developed by four different customers launching in at
least four major regional markets.
-- AAM will launch approximately 60% of its new business backlog in the
2008, 2009 and 2010 calendar years. The balance of the backlog will
launch in 2011 and 2012.
AAM will be presenting at the 2008 Auto Analyst of New York (AANY)
Detroit Auto Show Conference on Thursday, January 17, 2008 at 10:15 a.m.
EST. 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 2007 results on February 1, 2008 at 10:00 a.m. EST.
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, passenger cars, crossover utility vehicles and commercial
vehicles. In addition to locations in the United States (Michigan, New
York, Ohio and Indiana), 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 Chrysler LLC's heavy-duty Dodge Ram full-size pickup
trucks, or the Dodge Ram program; work stoppages at GM or Chrysler LLC or a
key supplier to GM or Chrysler LLC; our ability to achieve cost reductions
through accelerated attrition programs; reduced purchases of our products
by GM, Chrysler LLC 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.
SOURCE American Axle & Manufacturing Holdings, Inc.
 back to top
Related links:
http://www.aam.com
http://www.prnewswire.com/comp/033813.html /
CONTACT:
Media: Renee B. Rogers, Manager, Corporate
Communications and Media Relations, +1-313-758-4882,
renee.rogers@aam.com; or Investors: Jamie M. Little, Director,
Investor Relations, +1-313-758-4831, jamie.little@aam.com
|
