WSJ - American Axle & Manufacturing Hldgs Inc Outlk To Neg

[Klaus]

American Axle & Manufacturing Hldgs Inc Outlk To Neg


DOW JONES NEWSWIRES
April 29, 2005 4:08 p.m.

The following is a press release from Standard & Poor's:

NEW YORK (Standard & Poor's) April 29, 2005--Standard & Poor's Ratings Services said today it revised its outlook to negative from stable on the corporate credit ratings for American Axle & Manufacturing Holdings Inc. (American Axle) and operating unit American Axle & Manufacturing Inc. At the same time, it affirmed the 'BBB' corporate credit rating and all other ratings on both entities. Total outstanding consolidated debt at March 31, 2005, stood at about $550 million.

"The outlook revision follows release of the company's weak financial results for first-quarter 2005, and downward full-year earnings guidance," said Standard & Poor's credit analyst Daniel R. DiSenso. At year-end 2004, the Detroit, Mich.-based company's credit measures were much stronger than necessary for the ratings, giving American Axle the flexibility to make significant investments to expand product, customer and geographic diversity to lessen dependence on its main customer, General Motors Corp. (GM; BBB-/Negative/A-3) from whom it generates 79% of its sales. Much of this flexibility will be eliminated in 2005, given the current industry outlook.

Estimated 2005 year-end credit measures will be much weaker, although still likely in line with the ratings (debt to EBITDA of 2x; funds from operations to debt of 40%), but leaves American Axle with little debt capacity to accomplish its investment objectives unless demand for GM's light trucks improves in 2006.

Year-over-year sales and earnings for the first quarter of 2005, fell by 14% and 78%, respectively, reflecting an estimated 19% year-over-year decline in American Axle's customers' production volumes for the major North American light truck programs it supports. American Axle now expects production volumes for the year to be down 15%, compared with an 8% reduction forecast in early 2005.

[Klaus]

American Axle & Manufacturing Hldgs Inc Outlk To Neg


DOW JONES NEWSWIRES
April 29, 2005 4:08 p.m.

The following is a press release from Standard & Poor's:

NEW YORK (Standard & Poor's) April 29, 2005--Standard & Poor's Ratings Services said today it revised its outlook to negative from stable on the corporate credit ratings for American Axle & Manufacturing Holdings Inc. (American Axle) and operating unit American Axle & Manufacturing Inc. At the same time, it affirmed the 'BBB' corporate credit rating and all other ratings on both entities. Total outstanding consolidated debt at March 31, 2005, stood at about $550 million.

"The outlook revision follows release of the company's weak financial results for first-quarter 2005, and downward full-year earnings guidance," said Standard & Poor's credit analyst Daniel R. DiSenso. At year-end 2004, the Detroit, Mich.-based company's credit measures were much stronger than necessary for the ratings, giving American Axle the flexibility to make significant investments to expand product, customer and geographic diversity to lessen dependence on its main customer, General Motors Corp. (GM; BBB-/Negative/A-3) from whom it generates 79% of its sales. Much of this flexibility will be eliminated in 2005, given the current industry outlook.

Estimated 2005 year-end credit measures will be much weaker, although still likely in line with the ratings (debt to EBITDA of 2x; funds from operations to debt of 40%), but leaves American Axle with little debt capacity to accomplish its investment objectives unless demand for GM's light trucks improves in 2006.

Year-over-year sales and earnings for the first quarter of 2005, fell by 14% and 78%, respectively, reflecting an estimated 19% year-over-year decline in American Axle's customers' production volumes for the major North American light truck programs it supports. American Axle now expects production volumes for the year to be down 15%, compared with an 8% reduction forecast in early 2005.