AAM sales for the third quarter of 2021 were $1.21 billion, down approximately 14% compared to $1.41 billion in the third quarter of 2020.
The decrease in our revenues on a year-over-year basis primarily reflects the impact of the semiconductor supply chain disruptions of nearly $245 million.
North American industry production was down approximately 25% according to third-party estimates.
Light truck production was down 20% year-over-year and volumes on our core platforms decreased significantly from a year ago.
Days supply on key products that we support were at or below 30 days with certain platforms in single digits and large SUVs closer to 20 days.
AAM's adjusted EBITDA in the third quarter of 2021 was $183 million or 15.1% of sales.
This compares to $297 million last year.
Excluding the impact of metal markets and currency, our EBITDA margins would have approximated 19%.
AAM's adjusted earnings per share in the third quarter of 2021 was $0.15 per share compared to $1.15 in the third quarter of 2020.
AAM's adjusted free cash flow was approximately $69 million.
For the full year, we now target revenue in the range of $5.15 to $5.25 billion, adjusted EBITDA in the range of $830 million to $850 million and adjusted free cash flow of approximately $400 million.
For the first three quarters of 2021, metal markets in a foreign currency have increased our revenues by approximately $212 million, and we expect this to be well over $300 million for the full year.
Gross profit was $165.6 million, or 13.7%, of sales in the third quarter of 2021 compared to $249.8 million in the third quarter of 2020.
Adjusted EBITDA was $183.2 million in the third quarter of 2021 or 15.1% of sales.
This compares to $297.1 million in the third quarter of 2020.
The return of COVID volumes added approximately $16 million, but was more than offset by the negative impact from the production volatility stemming from the semiconductor disruptions in the amount of $83 million.
Last year, we also had a $22 million benefit from an ED&D recovery and a customer settlement that did not recur in 2021.
But even through all these disruptions in the quarter, AAM still delivered $17 million of net performance.
The retained portion impacting this quarter plus foreign currency was $31 million.
SG&A expense, including R&D, in the third quarter of 2021 was $90.5 million, or 7.5% of sales.
This compares to 4.7% of sales in the third quarter of 2020.
The AAM's R&D spending in the third quarter of 2021 was $34.7 million compared to $18 million in the third quarter of 2020.
Recall, we received significant engineering and development recovery last year of approximately $15 million.
Net interest expense was $47 million in the third quarter of 2021 compared to $50.5 million in the third quarter of 2020.
In the third quarter, we redeemed $100 million of our 6.25% notes due 2025 and refinanced the remaining $600 million balance.
In the third quarter of 2021, we reported an income tax benefit of $13.6 million compared to a benefit of $22.5 million in the third quarter of 2020.
As we near the end of 2021, we expect our effective tax rate to be approximately 10% to 15%.
We would also expect our cash taxes to be in the $25 million to $30 million range.
Taking all these sales and cost drivers into account, our GAAP net loss was $2.4 million, or $0.02 per share, in the third quarter of 2021 compared to an income of $117.2 million, or $0.99 per share, in the third quarter of 2020.
Net cash provided by operating activities for the third quarter of 2021 was $89.8 million compared to $249.5 million last year.
Capital expenditures net of proceeds from the sale of property, plant and equipment for the third quarter of 2021 was $33.2 million.
Cash payments for restructuring and acquisition-related activity for the third quarter of 2021 were $9 million.
The net cash outflow related to the recovery from the Malvern fire we experienced in September of 2020 was $3.5 million in the quarter.
In total, we would expect $55 million to $65 million in cash payments for restructuring and acquisition costs in 2021.
Reflecting the impact of this activity, AAM generated adjusted free cash flow of $69.1 million in the third quarter of 2021.
From a debt leverage perspective, we ended the quarter with net debt of $2.6 billion and LTM adjusted EBITDA of $930.2 million, calculating a net leverage ratio of 2.8 times at September 30.
We expect adjusted EBITDA to be in the range of $830 million to $850 million.
We expect to generate approximately $400 million of adjusted free cash flow in 2021, or nearly 50% adjusted free cash flow to adjusted EBITDA conversion.
We expect our capital expenditures at less than 4% of sales as our capital reuse and optimization efforts continue to deliver results.

Summary:
AAM sales for the third quarter of 2021 were $1.21 billion, down approximately 14% compared to $1.41 billion in the third quarter of 2020.
The decrease in our revenues on a year-over-year basis primarily reflects the impact of the semiconductor supply chain disruptions of nearly $245 million.
AAM's adjusted earnings per share in the third quarter of 2021 was $0.15 per share compared to $1.15 in the third quarter of 2020.
For the full year, we now target revenue in the range of $5.15 to $5.25 billion, adjusted EBITDA in the range of $830 million to $850 million and adjusted free cash flow of approximately $400 million.
The return of COVID volumes added approximately $16 million, but was more than offset by the negative impact from the production volatility stemming from the semiconductor disruptions in the amount of $83 million.
Taking all these sales and cost drivers into account, our GAAP net loss was $2.4 million, or $0.02 per share, in the third quarter of 2021 compared to an income of $117.2 million, or $0.99 per share, in the third quarter of 2020.
We expect adjusted EBITDA to be in the range of $830 million to $850 million.