American Axle & Manufacturing Holdings Inc. (NYSE:AXL) Q2 2020 Earnings Conference Call - Final Transcript
Jul 31, 2020 • 10:00 am ET
Good morning. My name is Elisa, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the American Axle & Manufacturing Second Quarter 2020 Earnings Conference Call. [Operator Instructions] After the speakers' remarks there will be a question-and-answer period. [Operator Instructions]
I would now like to turn the call over to Mr. Jason Parsons, Director of Investor Relations. Please go ahead, Mr. Parsons.
Thank you, Elisa, and good morning. I'd like to welcome everyone who is joining us on AAM's second quarter earnings call. Earlier this morning, we released our second quarter of 2020 earnings announcement. You can access this announcement on the Investor Relations page of our website, www.aam.com and to the PR Newswire services.
You can also find supplemental slides for this conference call on the Investor page of our website as well. To listen to a replay of this call, you can now 1 (877) 344-7529, replay access code 10144277. This replay will be available beginning at 1:00 p.m. today to 11:59 p.m. Eastern Time on August 7.
Before we begin, I would like to remind everyone that the matters discussed in this call may contain comments and forward-looking statements subject to risks and uncertainties, which cannot be predicted or quantified and which may cause future activities and results of operations to differ materially from those discussed. For additional information, we ask you refer to our filings with the Securities and Exchange Commission. Also during this call, we may refer to certain non-GAAP financial measures. Information regarding these non-GAAP measures as well as a reconciliation of these non-GAAP measures to GAAP financial information is available on our website.
With that, let me turn things over to AAM's Chairman and CEO, David Dauch.
David C. Dauch
Thank you, Jason, and good morning, everyone. Joining me on the call today are Mike Simonte, AAM's President; and Chris May, AAM's Vice President and Chief Financial Officer. To begin my comments today, I'll provide some remarks on AAM's second quarter financial results, which were adversely impacted by the extended global production shutdowns resulting from the COVID-19 pandemic.
AAM sales were $515 million for the second quarter of 2020, as compared to $1.7 billion in the second quarter of 2019. The decrease in our revenues on a year-over-year basis reflects primarily two factors. The first relates to the global production shutdowns and reduction in consumer demand due to the COVID-19 pandemic. We estimate that this had an unfavorable impact of approximately $947 million in the second quarter of 2020. In addition, our second quarter 2019 sales included $171 million related to our US iron casting operations. This business was sold in December of 2019 and is therefore no longer part of our sales base in 2020.
Adjusted EBITDA for the second quarter of 2020 was a loss of $52.1 million, this compared to an adjusted EBITDA of $266 million in the second quarter of 2019. Our second quarter adjusted EBITDA was down significantly on a year-over-year basis, primarily