American Axle & Manufacturing, a drivetrain components and systems manufacturer, reported a net loss of $5.1 million in the first quarter of 2022, compared to a net income of $1 million in the same period last year. The company attributed the losses to new program launch costs, material and labor inflation, and market inefficiencies brought on by supply chain and semiconductor issues. Customer production downtime, especially in full-size truck programs, also affected the company’s performance. Despite the challenges, American Axle’s revenue increased by 3.5% to $1.49 billion, partly due to its acquisition of Tekfor Group, which generated about $310 million in sales in 2021. The company’s yearlong outlook, targeting revenue of $5.95 billion to $6.25 billion, has not changed.
American Axle has secured a contract with Stellantis, the parent company of Chrysler, to supply electric beam axles for a future electric vehicle program expected to launch after 2025. The company aims to continue expanding its electric portfolio and is in conversations with several other automakers. American Axle estimates the addressable EV sourcing market to be about $20 billion to $30 billion by 2030 and aims to control a 10% share of that market by that year. The company has increased its R&D spending by about $8 million over the first quarter of 2022 to support new programs and grow its electric capabilities.
CEO David Dauch said the operating environment remains dynamic, but he is hopeful to see some stabilization in the second half of the year. CFO Christopher May expects launch costs to continue into the second quarter but reduce in the second half of the year. He also expects labor inflation to remain throughout the year but is “cautiously optimistic” that current market volatility will gradually stabilize. Despite the challenges, shares in American Axle gained 9.9% to $7.41 when the market closed on Friday.
Detroit-based American Axle ranks No. 43 on Automotive News’ list of the top 100 global parts suppliers, with worldwide sales to automakers of $5.16 billion in 2021. The company is leveraging its axle heritage with cutting-edge electric propulsion technology leadership to drive future growth.
