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Accuride Corp. Reports 29.5% Sales Rise in Q1

April 27, 2011 by · Leave a Comment 

Accuride Corp., a leading manufacturer and supplier of commercial vehicle components, has announced its financial results for the first quarter ended March 31.

According to a news release, net sales in first quarter of 2011 were $218.8 million compared with $169.0 million in the prior year, a 29.5% increase. The increase in sales was primarily the result of increased demand from customers in the commercial vehicle industry. For the first quarter of 2011, the company reported a net loss of $5.2 million compared to a net loss of $2.2 million for the same period in 2010. Adjusted EBITDA in the quarter was $17 million compared to $13.4 million in the prior year quarter. Cash and cash equivalents was $31.7 million at quarter end.

“We are pleased with the increase in our top line sales, which grew by almost 30% year-over-year,” said Rick Dauch, Accuride president and CEO. “Our Wheels business continues to perform solidly at this point in the cycle. We are, however, facing some short-term operational challenges on the Components side of the business, which is temporarily offsetting the strong performance in our Wheels division. We are aggressively addressing critical equipment issues and adding key management resources with machining and process engineering expertise to fix the root causes creating our operational challenges.”

Industry Overview

As the general economy improves, the three major segments Accuride supplies (North America Class 5-8 vehicles, U.S. trailers, and the related aftermarket channels) continue to improve year-over-year.

During the first quarter, production across all segments rose. Class 8 production rose approximately 49% year-over-year whereas Class 5-7 and U.S. Trailer rose 41% and 121%, respectively.

OEMs continued to ramp up production during the first quarter in line with increasing net orders, particularly within the Class 8 and Trailer segments. Fleet profit margins continue to improve as freight rates rise in response to tightening capacity within the industry. Class 8 net orders for March showed an increase of 156% year-over-year, the highest order level for the Class 8 segment since May 2006.

The trailer segment also continues to experience increasing demand as fleets look to replace older equipment and improve productivity within their operations. General demand for Class 5-7 equipment is also trending upward, but at a more modest pace due to continuing weakness in residential construction and municipal budgets. Some industry analysts are concerned that 2011 production increases could be potentially constrained by the industry’s ability to increase capacity quickly; however, Accuride has ample capacity to keep pace with the rising projections across all market segments.

While gains continue to be modest, the economy continues to show improvement as GDP is expected to increase 2% to 3% in the first quarter of 2011, following a 3.1% increase during the fourth quarter of 2010. Other key commercial vehicle industry indicators that continue to show positive growth include:

  • Diesel fuel consumption, measured by the Ceridian-UCLA Pulse of Commerce Index (PCI), increased 3.6% year-over-year in March which indicates increasing trucking activity and utilization;
  • The Institute for Supply Management (ISM) Index continued to expand for the 20th consecutive month with a reading of 61.2 for March; and
  • Personal Consumption Expenditures (PCE) continued to grow for the 6th consecutive quarter at 4% in the fourth quarter of 2010. Demand for trucks is positively correlated to PCE.

As commercial vehicle indicators improve in line with improving economic conditions, we expect freight to continue its steady recovery throughout 2011. It is anticipated that 2011 equipment demand will continue to strengthen and show significant growth over 2010 levels; however, the on-going weakness in residential and commercial construction along with municipal spending cuts will delay the recovery of Class 5-7.

Overall, conditions in the commercial vehicle industry continue to improve. Freight tonnage is forecasted to experience strong growth over the next several years, which will continue to drive increased demand for trucks and trailers.

Company Outlook

“We continue to be encouraged by the positive industry trends and the outlook for the full year. Accuride is well positioned to capitalize on the industry upturn and has sufficient capacity to meet the increasing demands of our customers,” said Dauch. “While industry trends are encouraging, raw material prices continue to increase across all major segments of our business. We have well-defined mechanisms with our customers to pass these costs through, which we will actively execute throughout the year. While we are able to pass along price changes in raw materials to our OEM customers, our ability to pass through non-material cost increases in our Gunite business, has been limited over the past several years. These cost increases must also be addressed.”

“We are increasing our full year revenue guidance to a range of $925 to $975 million for 2011, versus our previous guidance of $875 to $925 million,” continued Dauch. “We expect Adjusted EBITDA for 2011 to be in the range of $110 to $120 million, compared to our previous guidance of $100 to $115 million.”

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Accuride Corp. Reports 32% Sales Rise in 2010

February 25, 2011 by · Leave a Comment 

Accuride Corp., a leading manufacturer and supplier of commercial vehicle components, today announced its financial results for the fourth quarter and fiscal year ended Dec. 31, 2010.

Net sales in 2010 were $764 million, compared with $570.2 million in the prior year. The increase in sales was the result of increased demand from customers in the commercial vehicle industry, according to a news release. The company reported a net loss of $75.7 million, or ($4.83) per diluted share, compared to a net loss of $140.1 million, or ($35.90) per diluted share, in 2009.

On a pretax basis, 2010 results included a mark-to-market gain of $75.6 million on its convertible notes, a $166.7 million inducement expense associated with the early conversion of those same notes to equity, $59.3 million in favorable reorganization items and a $2.3 million charge in the fourth quarter related to a product campaign.

The loss in 2009 included charges of $31.4 million in reorganization items and pre-petition professional fees, $5.4 million for the early extinguishment of debt, $3.3 million in goodwill impairment and $11.4 million in restructuring costs. Adjusted EBITDA in the year was $66.2 million compared to $23.7 million in the prior year. Cash was $78.5 million at year end. Free cash flow was negative $28.1 million for the year, which includes $43.8 million in cash outflows related to our financial restructuring.

In the fourth quarter, net sales were $193.7 million compared to $146.2 million in the fourth quarter of 2009, an increase of 32.5% due to continuing year-over-year improvement in the commercial vehicle industry. On a U.S. GAAP basis, the company reported a net loss of $110.9 million, or ($4.47) per diluted share, compared to a loss of $39.7 million, or ($8.35) per diluted share, in the prior year. On a pretax basis, the loss in 2010 included the above $166.7 million inducement expense, a mark-to-market gain on the convertible notes prior to conversion of $70.0 million and a $2.3 million charge related to a product campaign.

The loss in 2009 included $900,000 in restructuring costs and the above $31.4 million in reorganization items and pre-petition professional fees. Adjusted EBITDA in the quarter was $15.1 million compared to $10.6 million in the prior year. Free cash flow was $17.9 million for the quarter, which includes $9.2 million in cash outflows related to our financial restructuring.

“2010 was a pivotal and successful year for Accuride. Despite the challenging economic and industry conditions, Accuride pursued and implemented strategic initiatives to successfully restructure the Company’s operations and capital structure, strengthen customer relationships and increase market share,” said Rick Dauch, Accuride’s president and CEO. “I am looking forward to building upon the momentum that began in 2010 and am honored to serve as the company’s new president and CEO.”

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Rick Dauch Named President/CEO at Accuride

February 1, 2011 by · 1 Comment 

Accuride  Corp. today (Feb. 1) announced that Richard F. (Rick) Dauch has been appointed to serve as the company’s president and CEO. Dauch succeeds Bill Lasky who has served as Accuride’s interim president and CEO since September 2008. Lasky has also served as chairman of the board since January 2009 and will continue in that role.

“Accuride is a financially solid company with market leading brands, a loyal customer base, and a strong foundation of world-class product and process technology. I am excited to join the Accuride team and look forward to developing and executing a plan to selectively and profitably grow the  company,” Dauch said in a statement

“I have enjoyed serving as interim president and CEO and working closely with Accuride’s strong management team throughout this very challenging economic cycle. I am equally looking forward to supporting Rick and the company as I continue in my role as chairman,” said Lasky. “Rick brings us extensive experience leading complex, global businesses, an in-depth understanding of manufacturing and supply chain systems, and proven leadership skills. These make him highly qualified to lead Accuride into the upturn in the commercial vehicle industry, successfully taking us to the next level of performance and delivering exceptional results for all of our stakeholders.”

Dauch joins Accuride from Michigan-based Acument Global Technologies, an industry leader in mechanical fastening systems, where he had served as president and CEO since June 2008. Dauch led an extensive restructuring of Acument, divesting non-strategic and under-performing operations, and virtually eliminating its debt, while simultaneously making critical investments and implementing LEAN systems across the remaining business units. Under his leadership, Acument emerged from the recent global recession financially and competitively strengthened.

Prior to joining Acument, Dauch served as executive vice president of Worldwide Manufacturing for American Axle & Manufacturing Inc. (AAM), where he was responsible for the daily operations of 17 global manufacturing facilities and 10,000 employees. In addition to serving as president of the Metal Formed Division, Dauch held a number of leadership roles within AAM during his 13-year tenure with the company, including director of strategic planning, vice president of sales and marketing, and vice president of investor relations and financial planning. Prior to AAM, Dauch led the specialty packaged products business of United Technologies’ Carrier Division.

Dauch’s corporate career was preceded by his service as an officer in the United States Army, including qualification as an Airborne Ranger and concluding with his assignment as a Light Infantry Company Commander in the 10th Mountain Division. This service followed his graduation from the United States Military Academy at West Point with a bachelor’s degree in Engineering. He later earned dual Master of Science degrees in Management and Engineering from Massachusetts Institute of Technology.

Dauch serves on the board of directors of the Original Equipment Suppliers Association, the Michigan Manufacturers Association, Spartan Motors, St. Joseph Mercy Oakland Foundation and the West Point Army Football Club.

Accuride Corp. is one of the largest and most diversified manufacturers and suppliers of commercial vehicle components in North America. The company’s products include commercial vehicle wheels, wheel-end components and assemblies, truck body and chassis parts, and other commercial vehicle components. The company’s products are marketed under its brand names, which include Accuride, Gunite, Imperial, Fabco, Brillion and Highway Original. For more information, visit the company’s website at http://www.accuridecorp.com.

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Accuride Execs to NYSE’s Ring Opening Bell

January 4, 2011 by · Leave a Comment 

Accuride Corp.

Accuride Corp.

Executives with Accuride Corp., in celebration of the company’s relisting on the New York Stock Exchange (NYSE), will ring the opening bell on Wednesday (Jan. 5) at 9:30 a.m. EST.

“We are extremely honored to ring The Opening Bell,” Bill Lasky, Accuride president, CEO and chairman, stated in a news release. “This ceremony honors our employees who are responsible for creating the quality product that has enabled Accuride to build and maintain a solid industry reputation, earn unwavering customer relationships, and position the Company for future growth.”

Accuride is one of the largest and most diversified manufacturers and suppliers of commercial vehicle components in North America. Accuride’s products include commercial vehicle wheels, wheel-end components and assemblies, truck body and chassis parts, seating assemblies, and other commercial vehicle components. Accuride’s products are marketed under its brand names, which include Accuride, Gunite, Imperial, Bostrom, Fabco, Brillion, and Highway Original. For more information, visit Accuride’s website at http://www.accuridecorp.com.

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Supplier Accuride Joins NYSE’s ‘Big Board’

December 22, 2010 by · Leave a Comment 

Accuride Corp.’s  common stock began trading today (Dec. 22) on the New York Stock Exchange (NYSE) under the symbol ACW.

Accuride currently has approximately 46.2 million shares outstanding. The shares previously traded on the over-the-counter bulletin board under the symbol ACUZ.

Accuride Corp. is one of the largest and most diversified manufacturers and suppliers of commercial vehicle components in North America. Accuride’s products include commercial vehicle wheels, wheel-end components and assemblies, truck body and chassis parts, seating assemblies, and other commercial vehicle components. Accuride’s products are marketed under its brand names, which include Accuride, Gunite, Imperial, Bostrom, Fabco, Brillion and Highway Original. For more information, visit Accuride’s website at http://www.accuridecorp.com.

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Supplier Accuride Getting Big Board Listing

December 17, 2010 by · Leave a Comment 

Accuride joins NYSE Dec. 22

Accuride joins NYSE Dec. 22

Accuride Corp. announced today (Dec. 17)  that NYSE Regulation Inc. has authorized Accuride Corp. for listing on the New York Stock Exchange. It is anticipated that Accuride’s common stock will begin trading on the NYSE, under the symbol ACW, when the market opens on Wednesday (Dec. 22).

“The listing of Accuride’s common stock on the NYSE puts a finishing touch on our capital restructuring efforts for 2010 and signifies Accuride’s positive momentum heading into 2011,” said Bill Lasky, Accuride president, chairman and CEO in a news release. “Our team has worked hard throughout the industry downturn to successfully restructure the company’s operations and capital structure to be in a position to capitalize on the inevitable economic recovery, and we’re pleased about the additional benefits that the relisting will bring to our investment community.”

Evansville, Ind.-based Accuride Corp. is one of the largest and most diversified manufacturers and suppliers of commercial vehicle components in North America. Accuride’s products include commercial vehicle wheels, wheel-end components and assemblies, truck body and chassis parts, seating assemblies and other commercial vehicle components. Accuride’s products are marketed under its brand names, which include Accuride, Gunite, Imperial, Bostrom, Fabco, Brillion and Highway Original.

For more information, visit Accuride’s website at http://www.accuridecorp.com.

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