American Axle & Manufacturing Holdings Inc Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Aileen Elizabeth Smith - BofA Merrill Lynch, Research Division - Analyst : This is Aileen Smith on for John. First question on the balance sheet, almost $900 million in cash appears pretty sufficient to weather through the current crisis. As we think about the back half of the year and cash burn reversing as volume comes back and then look forward into next year, presuming things continue to recover and cash flow improves, can you remind us what you feel comfortable with in terms of a minimum cash level above which you would look to direct capital towards delevering?

Question: Aileen Elizabeth Smith - BofA Merrill Lynch, Research Division - Analyst : Okay. That's helpful. And then a bit more of a longer-term strategic question. There's been a lot of hype more recently around electrification, particularly for light and commercial trucks. However, among some of the incumbent automakers, there also appears to be a push strategically to

Question: Aileen Elizabeth Smith - BofA Merrill Lynch, Research Division - Analyst : Yes. Yes, that's very helpful commentary.

Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst : Can you quantify or put any parameters on what that change in GM architecture impact is relative to your original expectations, as we think about the second half?

Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst : Yes. Okay. Was your Thailand business profitable when factoring that $20 million a quarter revenue loss? And was that fully captured in the quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2020 / 2:00PM, AXL.N - Q2 2020 American Axle & Manufacturing Holdings Inc Earnings Call

Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst : Right. So yes, I'm just saying as we take out the $20 million a quarter, I was just wondering what the -- what that -- so it's like (multiple speakers)?

Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst : Got it. Okay. And as we think about Axle's liquidity, just under $1.7 billion this quarter, would you expect to finish the third quarter at a similar level? I mean I believe you indicated you expect positive second half free cash flow. So I guess I'm just trying to get a sense for maybe the 3Q versus 4Q cadence on free cash flow?

Question: James Albert Picariello - KeyBanc Capital Markets Inc., Research Division - Analyst : But you do expect the second half free cash flow to be positive?