Revenue during the quarter grew 8.33 percent to $1,049.90 million from $969.20 million in the previous year period. Gross margin for the quarter expanded 212 basis points over the previous year period to 20.07 percent. Total expenses were 89.34 percent of quarterly revenues, down from 89.85 percent for the same period last year. This has led to an improvement of 51 basis points in operating margin to 10.66 percent.

Operating income for the quarter was $111.90 million, compared with $98.40 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $183.60 million compared with $149.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 203 basis points in the quarter to 17.49 percent from 15.46 percent in the last year period.

"AAMs record financial performance in the first quarter of 2017 sets the stage for the next chapter in our future,” said David C. Dauch, AAMs chairman and chief executive officer. "As we implement our integration plans to achieve synergy targets related to the completed acquisition of MPG, we look forward to driving profitable growth, strong free cash flow generation and long-term shareholder value as a larger, more diverse company."

American Axle Manufacturing Holdings forecasts revenue to be $6,100 million for fiscal year 2017.

The company has spent $174.60 million cash to meet investing activities during the quarter as against cash outgo of $50 million in the last year period. It has incurred net capital expenditure of $34.10 million on net basis during the quarter, down 31.80 percent or $15.90 million from year ago period.

Cash flow from financing activities was $1,172.80 million for the quarter, up 106,518.18 percent or $1,171.70 million, when compared with the last year period.

Cash and cash equivalents stood at $1,543.40 million as on Mar. 31, 2017, up 489.08 percent or $1,281.40 million from $262 million on Mar. 31, 2016.

Working capital increases sharply
American Axle Manufacturing Holdings has recorded an increase in the working capital over the last year. It stood at $1,800.80 million as at Mar. 31, 2017, up 262.19 percent or $1,303.60 million from $497.20 million on Mar. 31, 2016. Current ratio was at 3.33 as on Mar. 31, 2017, up from 1.69 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 15 days for the quarter from 31 days for the last year period. Days sales outstanding went down to 53 days for the quarter compared with 56 days for the same period last year.

Days inventory outstanding has decreased to 12 days for the quarter compared with 26 days for the previous year period. At the same time, days payable outstanding was almost stable at 50 days for the quarter, when compared with the previous year period.