Accuride’s EBITDA Up in 1Q

April 24, 2012
Accuride Corporation (NYSE: ACW) reported first-quarter adjusted EBITDA of $21.6 million, resulting in an adjusted EBITDA margin of 8 percent, compared to 7.8 percent in the same quarter of 2011

Accuride Corporation (NYSE: ACW) reported first-quarter adjusted EBITDA of $21.6 million, resulting in an adjusted EBITDA margin of 8 percent, compared to 7.8 percent in the same quarter of 2011.

As of March 31, 2012, the company had $36.6 million of cash, plus $67.2 million in availability under its ABL credit facility for total liquidity of $103.8 million.

Accuride achieved first-quarter net sales from continuing operations of $269.5 million, compared with $210.9 million in the same period in 2011, an increase of 27.8 percent, with all business segments posting double-digit revenue growth. The company delivered operating income for the quarter of $7.2 million, up from $1.4 million in the first quarter of 2011. The company reported a net loss of $2.9 million, or $0.06 per share during the quarter.

“Our first-quarter performance benefitted from continued commercial vehicle production strength and aftermarket order volumes – driven by healthy Class 8 truck and trailer demand – together with higher pricing and productivity gains coming from the solid execution of our ‘Fix and Grow’ operational improvement plans,” said Accuride President and CEO Rick Dauch. “We are engaged in nothing less than the complete operational turnaround of our core businesses.

“These efforts include expanding our aluminum wheel production capacity in response to strong demand, boosting performance and efficiencies at Gunite while upgrading its manufacturing capabilities, completing the consolidation of Imperial, and instituting common LEAN systems across the company. We have solid action plans in place to accomplish this and continue to execute them on schedule. In addition, our margins are beginning to reflect the impact of greater operating efficiencies and working capital performance as we execute our ‘Fix and Grow’ strategy.

“Although the commercial vehicle industry’s underlying equipment replacement fundamentals are still strong, we are seeing some slowdown within the Class 8 truck segment. Net orders in the first quarter were lower than expected, and, in turn, order backlogs have become less robust. OEMs have begun to respond by adjusting their build schedules. The industry appears to be experiencing a pullback from the stronger order levels seen in the fourth quarter of 2011, and we will continue to monitor customer build plans. The medium-duty truck and trailer markets continue to perform in line with industry expectations. Medium-duty production continues to improve at a modest pace, while trailer backlogs are the strongest they have been since 2007 and continue to increase.”

Related content: Accuride Boosts Aluminum Truck Wheel Capacity