Longtime drivetrain supplier American Axle & Manufacturing Holdings Inc. on Friday reported across-the-board gains in the first quarter.
American Axle, of Detroit, joined several suppliers in reporting first-quarter financial results impacted by the global semiconductor chip shortage that is plaguing the industry.
American Axle’s first-quarter net income was $38.6 million, up considerably from a net loss of $501.3 million in the year-earlier period.
The company said revenue improved 6.1 percent to $1.43 billion in the quarter. American Axle said sales took a $64 million hit because of the chip shortage.
Adjusted earnings before interest expense, income taxes, depreciation and amortization stood at $262.9 million, a growth of 23 percent from the year-earlier period.
The company also reported more net cash in the first quarter — $179.1 million compared to $139.4 million in the first quarter of 2020. Adjusted free cash flow was $174.1 million, compared with $83.3 million for the year-earlier period.
The supplier said its financial targets for the full year remain unchanged and that it currently anticipates North American light-vehicle production of 15 million to 15.5 million units.
Shares in American Axle closed Friday’s trading up 7.4 percent to $10.48.
“Although the industry is facing continuity of supply issues, we continue to navigate through these challenges while delivering strong results,” American Axle CEO David Dauch said in a statement. “In addition to driving operational excellence and managing our cost structure, we continue to make strategic investments and establish technical partnerships to support the industry shift towards electrification.”
In a separate announcement Friday, American Axle said it will join forces with Israel’s REE Automotive to develop an electric propulsion system for e-mobility.
The companies plan to incorporate American Axle’s electric drive units into REE’s modular REEcorner technology to create a flat electric vehicle chassis to be used in commercial vehicle applications.
The electric drive units are set to be developed in Detroit at American Axle’s Advanced Technology and Development Center. Delivery of prototypes is slated for the end of 2021, the companies said in a release.
“AAM’s modular drive solutions enhance our product offering with a highly compact form factor that will enable more design freedom and functionality for our future customers,” REE Automotive CEO Daniel Barel said in the release. “Together with AAM’s extensive knowledge in automotive and their global manufacturing presence, we will be able to push the REEcorner technology even further.”