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Accuride Corporation (NYSE: ACW) – a leading supplier of components to the North American commercial vehicle industry – today reported financial results for the third quarter ended September 30, 2012 and revised its full-year guidance to reflect the impact of near-term market changes and customer developments.
Accuride achieved third quarter 2012 net sales from continuing operations of $215.2 million, compared with $240.8 million in the same period in 2011, a decline of 10.6 percent, primarily reflecting the impact of weakening industry conditions during the quarter. The Company experienced a $9.7 million operating loss for the quarter, as compared to $4.5 million of operating income in the third quarter of 2011. The Company reported a net loss of $17.7 million, or $0.37 per share during the quarter, which included Elkhart closure costs and other one-time severance-related costs totaling $0.11 per share. Third quarter Adjusted EBITDA declined 44.4 percent year-over-year to $10.7 million, resulting in an Adjusted EBITDA margin of 5.0 percent, compared to 8.0 percent in the same quarter of 2011. As of September 30, 2012, the Company had $20.3 million of cash plus $59.4 million in availability under its ABL credit facility, for total liquidity of $79.7 million.
Commenting on Accuride’s third-quarter results and business outlook, President & CEO Rick Dauch said, “The third quarter was a real challenge for Accuride, primarily due to rapidly declining Class 8 vehicle production schedules, continued weak aftermarket demand and customer decisions regarding our Gunite business. Broadening economic uncertainty caused Class 8 truck orders to remain weak, which forced OEMs to make significant cuts to their build schedules, often with very short notice to suppliers. Global economic softness also impacted Brillion’s industrial customer base, causing a dramatic and rapid reduction in the unit’s monthly revenue. We responded to these conditions by aggressively lowering our cost structure. We reduced our corporate salaried staff, eliminated production shifts, resized the workforce at our business units, and accelerated the consolidation of Gunite’s Elkhart and Brillion machining operations. These actions are being implemented without jeopardizing our long-term ‘Fix & Grow’ strategy. Maintaining our focus on project execution and improving operational performance will enable us to improve cash flow, liquidity and shareholder value as industry conditions stabilize and improve.”