American Axle & Manufacturing Holdings, Inc. (AAM) on Friday (February 5th) reported its financial results for the fourth quarter and full year 2009.

The company reported fourth quarter sales of $464.0 million, 13% higher than the third quarter of 2009.

Operating income was $29.0 million, or 6.3% of sales.

Net income of $48.6 million, or $0.80 per share, marks AAM’s second consecutive profitable quarter.

The company’s quarterly results reflect the favorable impact of a U.S. tax refund claim of $48.8 million (or $0.80 per share) related to newly enacted legislation providing for a special 5-year net operating loss carryback election.

AAM’s 2009 year-end liquidity position of $481 million is $110 million higher than September 30, 2009 and reflects the impact of AAM’s successful debt and equity financing transactions completed in the quarter.

AAM’s results in the fourth quarter of 2009 were net earnings of $48.6 million or $0.80 per share. This compares to a net loss of $112.1 million, or $2.17 per share, in the fourth quarter of 2008.

AAM Co-Founder, Chairman of the Board & Chief Executive Officer Richard Dauch said, “In 2009, AAM successfully navigated through one of the most difficult periods in the history of the global automotive industry. We achieved transformational improvements in our cost structure, operating flexibility and capacity utilization. We stabilized AAM’s capital structure by securing new financing arrangements and ended the year with positive momentum by returning to profitability in the third and fourth quarters of 2009. This is powerful validation of our progress in positioning AAM for continued profitability, stable free cash flow generation and further diversification of the business.”

AAM’s net loss for the full year 2009 was $253.1 million, or $4.81 per share. This compares to a net loss of $1.2 billion, or $23.73 per share, in 2008.

In 2008 and 2009, AAM incurred special charges, asset impairments and other non-recurring operating costs related to the implementation of new labor agreements, hourly and salaried attrition program activity, plant closures and other actions to rationalize capacity, redeploy underutilized assets and align AAM’s business to current and projected market requirements. In total, AAM’s 2009 results reflect the impact of charges amounting to $169.3 million (or $3.22 per share) relating to these items, including pension and other postretirement benefit curtailments and special termination benefits. This compares to $985.4 million (or $19.10 per share) of such charges in 2008.

AAM’s full year 2009 results also reflect restructuring costs and other special items of $17.8 million (or $0.34 per share), primarily relating to the successful closing of a settlement and commercial agreement with General Motors Company (GM), the amendment of AAM’s senior secured credit facilities and the write-off of unamortized debt issuance costs related to the prepayment of the $250 million Term Loan due 2012.

AAM expects to be profitable and generate EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) in the range of 12% to 15% of sales in 2010.

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 trucks, sport utility vehicles, passenger cars and crossover utility vehicles. In addition to locations in the United States (Michigan, New York, Ohio, Pennsylvania and Indiana), AAM also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea, Thailand and the United Kingdom.  Its operations include a manufacturing facility in Three Rivers.

Source:  News release from American Axle & Manufacturing