American Axle & Manufacturing Reports Q2 2007 Financial Results

"AAM's world-class quality, warranty, delivery and launch performance, and advanced technology are major differentiators in today's global automotive supply market," said American Axle & Manufacturing Co-Founder, Chairman of the Board & CEO, Richard E. Dauch. "The continued expansion of AAM's new business backlog is evidence that we are successfully delivering on our long-term strategic goals of expanding our product portfolio, served markets, customer base and global manufacturing footprint. We are especially pleased with the growth in our backlog of orders from new customers in fast-growing global markets."

A conference call to review AAM's second quarter 2007 results is scheduled today at 10:00 a.m. EDT. Interested participants may listen to the live conference call by logging onto AAM's investor web site at http://investor.aam.com or calling (877) 278-1452 from the United States or (706) 643-3736 from outside the United States. A replay will be available from 1:00 p.m. EDT on July 27, 2007 until 5:00 p.m. EDT August 3, 2007 by dialing (800) 642-1687 from the United States or (706) 645-9291 from outside the United States. When prompted, callers should enter conference reservation number 4301941.

Non-GAAP Financial Information

In addition to the results reported in accordance with accounting principles generally accepted in the United States of America (GAAP) included within this press release, AAM has provided certain information, which includes non-GAAP financial measures. Such information is reconciled to its closest GAAP measure in accordance with the Securities and Exchange Commission rules and is included in the attached supplemental data.

Management believes that these non-GAAP financial measures are useful to both management and its stockholders in their analysis of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes.

Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, non-GAAP financial measures as presented by AAM may not be comparable to similarly titled measures reported by other companies.

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 light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), AAM also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom.

Certain statements contained in this press release are "forward-looking statements" and relate to the Company's plans, projections, strategies or future performance. Such statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on our current expectations, are inherently uncertain, are subject to risks and should be viewed with caution. Actual results and experience may differ materially from the forward-looking statements as a result of many factors, including but not limited to: adverse changes in the economic conditions or political stability of our principal markets (particularly North America, Europe and South America); reduced demand of our customers' products or volume reductions, particularly for light trucks and SUVs produced by GM and DaimlerChrysler's heavy-duty Dodge Ram full-size pickup trucks, or the Dodge Ram program; work stoppages at GM or DaimlerChrysler or a key supplier to GM or DaimlerChrysler; our ability to achieve cost reductions through accelerated attrition programs; reduced purchases of our products by GM, DaimlerChrysler or other customers; our ability and our customers' ability to successfully launch new product programs; our ability to respond to changes in technology or increased competition; supply shortages or price fluctuations in raw materials, utilities or other operating supplies; our ability to maintain satisfactory labor relations and avoid work stoppages; risks of noncompliance with environmental regulations or risks of environmental issues that could result in unforeseen costs at our facilities; liabilities arising from legal proceedings to which we are or may become a party or claims against us or our products; availability of financing for working capital, capital expenditures, research and development or other general corporate purposes, including our ability to comply with financial covenants; adverse changes in laws, government regulations or market conditions affecting our products or our customers' products (including the Corporate Average Fuel Economy regulations); our ability to attract and retain key associates; and other unanticipated events and conditions that may hinder our ability to compete. For additional discussion, see "Item 1A. Risk Factors" in our most recent annual report on Form 10-K and quarterly reports on Form 10-Q. It is not possible to foresee or identify all such factors and we assume no obligation to update any forward-looking statements or to disclose any subsequent facts, events or circumstances that may affect their accuracy.

    For more information:

    Media relations contact:
    Renee B. Rogers
    Manager, Corporate Communications and Media Relations
    (313) 758-4882
    
Email Contact

    Investor relations contact:
    Jamie M. Little
    Director, Investor Relations
    (313) 758-4831
    
Email Contact

    Or visit the AAM website at 
www.aam.com



                  AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

                                        Three months ended  Six months ended
                                              June 30,          June 30,
                                        ------------------  ----------------
                                            2007    2006     2007      2006
                                        --------- --------  ------- --------
                                           (In millions,      (In millions,
                                          except per share  except per share
                                               data)              data)

    Net sales                              $916.5  $874.6  $1,718.7  $1,709.4

    Cost of goods sold                          803.4      784.7      1,520.8      1,556.0
                                                                                      ------    ------      -------      -------

        Gross  profit                                                        113.1        89.9          197.9          153.4

        Selling,  general  and  administrative
          expenses                                                                54.2        49.4          103.1            97.9
                                                                                      ------    ------        ------        ------

        Operating  income                                                  58.9        40.5            94.8            55.5

        Net  interest  expense                                        (15.3)      (7.9)        (29.3)        (15.3)
        Other  income  (expense),  net
            Debt  refinancing  cost                                    (5.5)      (2.4)          (5.5)          (2.4)
            Other,  net                                                            1.2          0.7              1.3              1.4
                                                                                      ------    ------        ------        ------

        Income  before  income  taxes                              39.3        30.9            61.3            39.2

        Income  taxes                                                            5.3        10.5            11.9            10.1
                                                                                      ------    ------        ------        ------

        Net  income                                                            $34.0      $20.4          $49.4          $29.1
                                                                                      ======    ======        ======        ======


        Diluted  earnings  per  share                            $0.64      $0.40          $0.94          $0.57
                                                                                      ======    ======        ======        ======

        Diluted  shares  outstanding                              52.8        51.2            52.5            51.1
                                                                                      ======    ======        ======        ======



                                    AMERICAN  AXLE  &  MANUFACTURING  HOLDINGS,  INC.
                                            CONDENSED  CONSOLIDATED  BALANCE  SHEETS
                                                                      (Unaudited)

                                                                                                      June  30,              December  31,
                                                                                                          2007                            2006
                                                                                                  -----------            ------------
                                                                                                                    (In  millions)
                                      ASSETS

        Current  assets
            Cash  and  cash  equivalents                                          $331.3                          $13.5
            Accounts  receivable,  net                                              399.3                          327.6
            Inventories,  net                                                              221.8                          198.4
            Prepaid  expenses  and  other                                            85.4                            69.2
            Deferred  income  taxes                                                      27.5                            30.7
                                                                                                    --------                    --------
        Total  current  assets                                                      1,065.3                          639.4

        Property,  plant  and  equipment,  net                          1,696.6                      1,731.7
        Deferred  income  taxes                                                          46.8                            35.7
        Goodwill                                                                                  147.8                          147.8
        Other  assets  and  deferred  charges                                  49.2                            42.9
                                                                                                    --------                    --------
        Total  assets                                                                    $3,005.7                    $2,597.5
                                                                                                    ========                    ========



        LIABILITIES  AND  STOCKHOLDERS'  EQUITY

        Current  liabilities
            Accounts  payable                                                            $430.4                        $328.9
            Other  accrued  expenses                                                  226.6                          212.4
                                                                                                    --------                    --------
        Total  current  liabilities                                                657.0                          541.3

        Long-term  debt                                                                      846.3                          672.2
        Deferred  income  taxes                                                            6.1                              6.8
        Postretirement  benefits  and  other
          long-term  liabilities                                                      639.8                          563.5
                                                                                                    --------                    --------
        Total  liabilities                                                            2,149.2                      1,783.8


        Stockholders'  equity                                                          856.5                          813.7
                                                                                                    --------                    --------
        Total  liabilities  and  stockholders'
          equity                                                                              $3,005.7                    $2,597.5
                                                                                                    ========                    ========



                                    AMERICAN  AXLE  &  MANUFACTURING  HOLDINGS,  INC.
                                CONDENSED  CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS
                                                                    (Unaudited)

                                                                                      Three  months              Six  months
                                                                                              ended                        ended
                                                                                          June  30,                    June  30,
                                                                                    ---------------    ---------------
                                                                                        2007          2006        2007          2006
                                                                                    -------    ------    -------    ------
                                                                                        (In  millions)        (In  millions)
        Operating  activities
            Net  income                                                        $34.0      $20.4        $49.4        $29.1
            Depreciation  and  amortization                    57.0        51.1        113.4        100.4
            Other                                                                  133.8        21.2          71.8        (29.8)
                                                                                      ------    ------      ------      ------

        Net  cash  flow  provided  by  operating
          activities                                                          224.8        92.7        234.6          99.7

        Purchases  of  property,  plant  &
          equipment                                                            (33.0)    (75.2)      (75.5)    (156.0)
                                                                                      ------    ------      ------      ------

        Net  cash  flow  after  purchases  of
          property,  plant  &  equipment                        191.8        17.5        159.1        (56.3)
                                                                                      ------    ------      ------      ------

        Purchase  buyouts  of  leased  equipment                -      (19.5)              -        (19.5)
                                                                                      ------    ------      ------      ------

        Net  cash  flow  provided  by  (used  in)
          operations                                                          191.8        (2.0)      159.1        (75.8)

        Net  increase  (decrease)  in  long-term
          debt                                                                              -        16.3        169.4        101.1
        Debt  issuance  costs                                            (2.3)      (3.1)        (7.5)        (3.1)
        Employee  stock  option  exercises                      6.9          0.1          11.3            0.2
        Dividends  paid                                                      (8.0)      (7.8)      (15.8)      (15.5)
                                                                                      ------      -----      ------      ------

        Net  cash  flow  provided  by  (used  in)
          financing  activities                                        (3.4)        5.5        157.4          82.7

        Effect  of  exchange  rate  changes  on
          cash                                                                          1.0          0.2            1.3            0.2
                                                                                      ------    ------      ------      ------

        Net  increase  in  cash  and  cash
          equivalents                                                        189.4          3.7        317.8            7.1

        Cash  and  cash  equivalents  at
          beginning  of  period                                        141.9          7.1          13.5            3.7
                                                                                      ------    ------      ------      ------

        Cash  and  cash  equivalents  at  end  of
          period                                                                $331.3      $10.8      $331.3        $10.8
                                                                                      ======    ======      ======      ======



                                    AMERICAN  AXLE  &  MANUFACTURING  HOLDINGS,  INC.
                                                              SUPPLEMENTAL  DATA
                                                                    (Unaudited)

          The  supplemental  data  presented  below  is  a  reconciliation  of  certain
      financial  measures  which  is  intended  to  facilitate  analysis  of  American
      Axle  &  Manufacturing  Holdings,  Inc.  business  and  operating  performance.

            Earnings  before  interest  expense,  income  taxes  and  depreciation  and
                                                        amortization  (EBITDA)(a)

                                                                                      Three  months              Six  months
                                                                                            ended                          ended
                                                                                          June  30,                    June  30,
                                                                                    ---------------    ---------------
                                                                                        2007          2006        2007          2006
                                                                                    -------    ------    -------      -----
                                                                                        (In  millions)        (In  millions)

        Net  income                                                            $34.0      $20.4        $49.4        $29.1
        Interest  expense                                                  17.7          7.9          32.3          15.4
        Income  taxes                                                            5.3        10.5          11.9          10.1
        Depreciation  and  amortization                        57.0        51.1        113.4        100.4
                                                                                    -------    ------      ------      ------

        EBITDA                                                                  $114.0      $89.9      $207.0      $155.0
                                                                                    =======    ======      ======      ======



                                                          Net  debt(b)  to  capital

                                                                                                      June  30,              December  31,
                                                                                                          2007                          2006
                                                                                                    ----------            ------------
                                                                                          (In  millions,  except  percentages)

        Total  debt                                                                            $846.3                        $672.2
        Less:  cash  and  cash  equivalents                                    331.3                            13.5
                                                                                                      -------                      -------

        Net  debt  at  end  of  period                                                515.0                          658.7

        Stockholders'  equity                                                          856.5                          813.7
                                                                                                      -------                      -------

        Total  invested  capital  at  end  of
          period                                                                              $1,371.5                    $1,472.4
                                                                                                    ========                    ========

        Net  debt  to  capital(c)                                                        37.6%                          44.7%
                                                                                                    ========                    ========


        (a)  We  believe  that  EBITDA  is  a  meaningful  measure  of  performance  as  it  is
                commonly  utilized  by  management  and  investors  to  analyze  operating
                performance  and  entity  valuation.  Our  management,  the  investment
                community  and  the  banking  institutions  routine

        (b)  Net  debt  is  equal  to  total  debt  less  cash  and  cash  equivalents.

        (c)  Net  debt  to  capital  is  equal  to  net  debt  divided  by  the  sum  of
                stockholders'  equity  and  net  debt.    We  believe  that  net  debt  to
                capital  is  a  meaningful  measure  of  financial  condition  as  it  is
                commonly  utilized  by  management,  investors  and  creditors  to  assess
                relative  capital  structure  risk.    Other  companies  may  calculate  net
                debt  to  capital  differently.



                                    AMERICAN  AXLE  &  MANUFACTURING  HOLDINGS,  INC.
                                                  SUPPLEMENTAL  DATA  (CONTINUED)
                                                                    (Unaudited)

          The  supplemental  data  presented  below  is  a  reconciliation  of  certain
      financial  measures  which  is  intended  to  facilitate  analysis  of  American
      Axle  &  Manufacturing  Holdings,  Inc.  business  and  operating  performance.

                                  Net  Operating  Cash  Flow  and  Free  Cash  Flow(d)

                                                                                        Three  months            Six  months
                                                                                              ended                        ended
                                                                                          June  30,                    June  30,
                                                                                        2007        2006          2007          2006
                                                                                      (In  millions)          (In  millions)

        Net  cash  provided  by  operating
          activities                                                        $224.8      $92.7      $234.6        $99.7
        Less:  purchases  of  property,  plant  &
          equipment                                                            (33.0)    (75.2)      (75.5)    (156.0)
                                                                                      ------    ------      ------      ------

        Net  operating  cash  flow                                  191.8        17.5        159.1        (56.3)

        Less:  dividends  paid                                          (8.0)      (7.8)      (15.8)      (15.5)
                                                                                      ------    ------      ------      ------

        Free  cash  flow                                                  $183.8        $9.7      $143.3      $(71.8)
                                                                                      ======    ======      ======      ======



                                  After-Tax  Return  on  Invested  Capital  (ROIC)(e)
                                                                                                                                          Trailing
                                                                                                                                            Twelve
                                                                                                                                            Months
                                                                                            Quarter  Ended                      Ended
                                                          ---------------------------------------
                                                            September    December
                                                                  30,              31,        March  31,  June  30,  June  30,
                                                                2006            2006            2007          2007            2007
                                                            ---------    --------  ---------  --------  --------
                                                                              (In  millions,  except  percentages)

        Net  income                                  $(62.9)      $(188.6)      $15.4      $34.0      $(202.1)
        After-tax  net  interest
          expense  (f)                                    6.6                7.8            9.8        13.2            37.4
                                                              ------          ------      ------    ------        ------

        After-tax  return                      $(56.3)      $(180.8)      $25.2      $47.2      $(164.7)
                                                              ======          ======      ======    ======        ======

        Net  debt  at  end  of
          period                                                                                                                    $515.0
        Stockholders'  equity
          at  end  of  period                                                                                                  856.5
                                                                                                                                          ------

        Invested  capital  at
          end  of  period                                                                                                    1,371.5
        Invested  capital  at
          beginning  of  period                                                                                        1,598.2
                                                                                                                                        -------

        Average  invested  capital(g)                                                                        $1,484.9
                                                                                                                                        =======

        After-Tax  ROIC(h)                                                                                                  -11.1%
                                                                                                                                        =======


        (d)  We  define  net  operating  cash  flow  as  net  cash  provided  by  operating
                activities  less  purchases  of  property  and  equipment.  Free  cash  flow  is
                defined  as  net  operating  cash  flow  less  dividends  paid.  We  believe  net
                operating  cash  flow  and  free  cash  flow
        (e)  We  believe  that  ROIC  is  a  meaningful  overall  measure  of  business
                performance  because  it  reflects  the  company's  earnings  performance
                relative  to  its  investment  level.  ROIC  is  also  a  key  metric  used  in
                our  calculation  of  incentive  compensation.  Other
        (f)  After-tax  net  interest  expense  is  equal  to  tax  effecting  net  interest
                expense  by  the  effective  income  tax  rate  (excluding  one-time  items)
                for  each  presented  quarter.
        (g)  Average  invested  capital  is  equal  to  the  average  of  invested  capital
                at  the  beginning  of  the  year  and  end  of  the  year.
        (h)  After-tax  ROIC  is  equal  to  after-tax  return  divided  by  average
                invested  capital.
 

Web site: http://www.aam.com//



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