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TheStreet Open House

Accuride Corporation's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: ACW

With that, I’ll turn it over to our President and CEO, Rick Dauch.

Rick Dauch

Good morning everybody and thanks for your continued interest in Accuride. Let me start off, talk about what we achieved in the second quarter. Our Fix & Grow strategy, we restructure and restore Accuride’s profitability remains on track. It’s a long-term strategy. The business did not get broken overnight and it won’t get fixed overnight. Wheels and Brillion were strong performance for us during the second quarter. Very important for us that we got Imperial’s Decatur and Texas facilities back under operational control.

We put an entire new management team in there. We’ve improved – we’ve eliminated the past dues situation. We’ve improved delivery performance. We’ve eliminated premium freight and we’re now in the process of reducing overtime and labor costs to get back on track from a profitability standpoint.

We’re also very excited to announce that we’ve earned $12 million to $15 million in new business with different customers than the normal Imperial customer base. That represent about a 10% uptick in 2013 over 2012’s current forecast for Imperial. Our aluminum wheel capacity expansions, projects are two to three weeks ahead of schedule in both Camden and Monterrey. And we have more than 25% of the new Gunite machine equipment now installed and operated at our Rockford facility, the second drum line just was installed and has been qualified and starts ramping up this week. And the new assembly line for the slack adjusters was installed just 10 days ago and we were there two days ago watching to make parts getting to ready to ship to customers.

We continue to examine the potential consolidation of some of our heavy duty steel wheel capacity in London and Mexico. And we’ve made a public announcement the difficult decision to close our Elkhart Indiana facility by the first quarter of 2013. These actions help to align our manufacturing footprint with market demands. We’ll improve our operating efficiency. We’ll reduce fixed cost structure and increase our profitability.

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