Revenue during the quarter went down marginally by 1.24 percent to $946.50 million from $958.40 million in the previous year period. Gross margin for the quarter expanded 193 basis points over the previous year period to 18.61 percent. Total expenses were 92.66 percent of quarterly revenues, up from 90.91 percent for the same period last year. That has resulted in a contraction of 175 basis points in operating margin to 7.34 percent.

Operating income for the quarter was $69.50 million, compared with $87.10 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $148.20 million compared with $137.50 million in the prior year period. At the same time, adjusted EBITDA margin improved 131 basis points in the quarter to 15.66 percent from 14.35 percent in the last year period.

"In 2016, AAM achieved another year of record sales and gross profit, strong global operational performance, and new business wins that will further drive sales diversification," said AAM's chairman & chief executive officer, David C. Dauch. "As we look towards what we expect to be a transformational year for AAM in 2017, we will be laser focused on our commitment to provide our customers with world-class quality, operational excellence and technology leadership."

For financial year 2017, American Axle & Manufacturing Holdings projects revenue to be in the range of $4,100 million to $4,200 million.

The company has spent $227.70 million cash to meet investing activities during the year as against cash outgo of $188.10 million in the last year. It has incurred net capital expenditure of $221.30 million on net basis during the year, up 14.54 percent or $28.10 million from year ago.

Cash flow from financing activities was $18.40 million for the year as against cash outgo of $143.60 million in the last year period.

Cash and cash equivalents stood at $481.20 million as on Dec. 31, 2016, up 70.34 percent or $198.70 million from $282.50 million on Dec. 31, 2015.

Working capital increases sharply
American Axle & Manufacturing Holdings has recorded an increase in the working capital over the last year. It stood at $685 million as at Dec. 31, 2016, up 61.18 percent or $260 million from $425 million on Dec. 31, 2015. Current ratio was at 2.05 as on Dec. 31, 2016, up from 1.61 on Dec. 31, 2015.

Cash conversion cycle (CCC) has increased to 17 days for the quarter from 15 days for the last year period. Days sales outstanding went up to 27 days for the quarter compared with 26 days for the same period last year.

Days inventory outstanding was almost stable at 13 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 23 days for the quarter, when compared with the previous year period.