AAM sales for the second quarter 2021, were $1.28 billion, up approximately 149% compared to $515 million in the second quarter of 2020.
North American industry production was up approximately 130% according to third party estimates.
Light truck production was up 150% year-over-year.
AAM's adjusted EBITDA in the second quarter 2021 was $222.6 million or 17.3% of sales.
This compares to a loss of $52.1 million last year.
AAM's adjusted earnings per share in the second quarter of 2021 was $0.29 per share compared to a loss of $1.79 in the second quarter of 2020.
We generated adjusted free cash flow of over $136 million compared to an outflow of approximately $162 million in the second quarter of 2020.
Additionally, we prepaid over $140 million of term loans in the second quarter.
And since the fourth quarter of 2020, to the second quarter 2021, we have paid down approximately $360 million of long-term debt.
We achieved 2.5 times net leverage ratio in the second quarter.
Our revenue will be $5.3 billion to $5.5 billion.
Adjusted EBITDA $875 million to $925 million.
And adjusted free cash flow of $350 million to $425 million.
In the second quarter of 2021 AAM sales were $1.28 billion compared to $515 million in the second quarter of 2020.
First, we add back the impact of COVID-19 from second quarter of 2020 of approximately $947 million.
Then, we account for the unfavorable impact of the semiconductor shortage which we estimate to be approximately $162 million in the second quarter of 2021.
Other volume mix and pricing was negative by $99 million.
Metals and FX accounted for an increase in sales of $82 million.
Gross profit was $190 million or 14.8% of sales in the second quarter of 2021, compared to a loss of $99 million in the second quarter of 2020.
Adjusted EBITDA was $222.6 million in the second quarter of 2021 or 17.3% of sales.
This compares to a loss of $52.1 million in the second quarter of 2020.
This drove a $16 million benefit from inventory absorption timing, which should reverse out in the second half of the year as we anticipate reducing inventories during that timeframe.
SG&A expense including R&D in the first quarter of 2021 was $86 million or 6.7% of sales.
This compares to 14.3% of sales in the second quarter of 2020 as revenues rapidly declined last year due to COVID-19 related shutdowns.
AAM's R&D spending in the second quarter of 2021 was $30 million compared to $32 million in the second quarter of 2020.
Net interest expense was $47.3 million in the second quarter of 2021 compared to $51.6 million in the second quarter of 2020.
In the second quarter of 2021, we recorded income tax expense of $2.4 million compared to a benefit of $43.9 million in the second quarter of 2020.
As we continue into 2021, we expect our effective tax rate to be approximately 15% to 20%.
We would expect cash taxes to be in the $30 million to $40 million range.
Taking all these sales and cost drivers into account, our GAAP net income was $16 million or $0.13 per share in the second quarter of 2021, compared to a loss of $213.2 million or a loss of $1.88 per share in the second quarter of 2020.
Net cash provided by operating activities for the second quarter of 2021 was $167.1 million compared to an outflow of $142.5 million last year.
Capital expenditures, net of the proceeds from the sale of property plant equipment for the second quarter of 2021 was $41 million.
Cash payments for restructuring acquisition-related activity for the second quarter of 2021 were $16 million.
The net cash inflow related to the recovery from the Malvern fire we experienced in September of 2020 was $5 million in the quarter.
In total, we would expect $50 million to $65 million in restructuring and acquisition costs in 2021.
Reflecting the impact of this activity, AAM generated adjusted free cash flow of $136.1 million in the second quarter of 2021.
From a debt leverage perspective, we ended the quarter with net debt of $2.6 billion and LTM adjusted EBITDA of $1 billion, calculating a net leverage ratio of 2.5 times at June 30.
Speaking of AAM's strong free cash flow generation, we prepaid over $140 million on our term-loans in the quarter.
Subsequent to the end of the second quarter, we redeemed an additional $100 million on our 6.25% notes due in 2025.
As of today, we have paid down approximately $350 million in our term loans and notes in 2021 alone.

Summary:
AAM sales for the second quarter 2021, were $1.28 billion, up approximately 149% compared to $515 million in the second quarter of 2020.
AAM's adjusted earnings per share in the second quarter of 2021 was $0.29 per share compared to a loss of $1.79 in the second quarter of 2020.
Our revenue will be $5.3 billion to $5.5 billion.
Taking all these sales and cost drivers into account, our GAAP net income was $16 million or $0.13 per share in the second quarter of 2021, compared to a loss of $213.2 million or a loss of $1.88 per share in the second quarter of 2020.