Revenue during the quarter grew 3.63 percent to $1,006.90 million from $971.60 million in the previous year period. Gross margin for the quarter expanded 170 basis points over the previous year period to 18 percent. Total expenses were 89.94 percent of quarterly revenues, down from 90.45 percent for the same period last year. This has led to an improvement of 51 basis points in operating margin to 10.06 percent.

Operating income for the quarter was $101.30 million, compared with $92.80 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $156.70 million compared with $149.20 million in the prior year period. At the same time, adjusted EBITDA margin improved 21 basis points in the quarter to 15.56 percent from 15.36 percent in the last year period.

“AAM's third quarter financial results continued to reflect strong production volumes and solid performance in our global manufacturing operations,“ said AAM’s chairman and chief executive officer, David C. Dauch. "Our year-to-date financial performance positions AAM to achieve record sales and profit in 2016."

American Axle & Manufacturing Holdings forecasts revenue to be $3,950 million for fiscal year 2016. For fiscal year 2016, American Axle & Manufacturing Holdings forecasts net income to be in the range of $235 million to $245 million.

The company has spent $159.80 million cash to meet investing activities during the nine month period as against cash outgo of $131.90 million in the last year period. It has incurred net capital expenditure of $158 million on net basis during the nine month period, up 19.79 percent or $26.10 million from year ago period.

Cash flow from financing activities was $17.60 million for the nine month period as against cash outgo of $8.10 million in the last year period.

Cash and cash equivalents stood at $433.90 million as on Sep. 30, 2016, up 18.68 percent or $68.30 million from $365.60 million on Sep. 30, 2015.

Working capital increases
American Axle & Manufacturing Holdings, Inc has recorded an increase in the working capital over the last year. It stood at $653.70 million as at Sep. 30, 2016, up 10.24 percent or $60.70 million from $593 million on Sep. 30, 2015. Current ratio was at 1.85 as on Sep. 30, 2016, up from 1.78 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 18 days for the quarter from 32 days for the last year period. Days sales outstanding were almost stable at 60 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 12 days for the quarter compared with 27 days for the previous year period. At the same time, days payable outstanding was almost stable at 55 days for the quarter, when compared with the previous year period.