EVANSVILLE, Ind. – Accuride Corp. has announced its financial results for the second quarter ended June 30.
Net sales in the second quarter of 2011 were $248.2 million, compared with $195.6 million in the prior year, an increase of 26.9 percent. The company said this increase in sales was primarily the result of increased demand from customers in the commercial vehicle industry. The company reported second quarter net income of $1.3 million in 2011 compared to a net income of $6.5 million in 2010. Prior period net income included a pre-tax, mark-to-market gain of $19.4 million to the company’s previously retired convertible notes.
“The continued recovery in the North American commercial vehicle market, combined with our actions to improve operating performance and recover raw material inflation, enabled us to deliver our third consecutive quarter of revenue growth and a 31.3 percent year-over-year improvement in adjusted EBITDA,” said Accuride President and CEO Rick Dauch. “We are encouraged by the industry’s positive full-year outlook and are committed to making the investments needed to strengthen and selectively grow our business, while providing the capacity to fully support our customers’ increasing needs.”
Combined net sales for the six months ended June 30 were $467 million, which was an increase of 28.1 percent, compared to net sales of $364.6 million for the six months ended June 30, 2010.
As announced previously, during the quarter the company completed the acquisition of substantially all of the assets of Forgitron Technologies for a cash price of $22 million. This acquisition included an 80,000-square-foot forged aluminum wheel manufacturing facility in Camden, S.C., and is consistent with the company’s planned capacity expansion of its core Aluminum Wheel product line. Following the acquisition, the Camden facility was closed for 30 days to convert production to Accuride products and processes. Accuride noted this facility is now fully operational and will provide added capacity and flexibility to support customer needs.
Company Outlook
“Despite some recent mixed macroeconomic signals, all indicators for our industry remain solid,” said Dauch. “During the second half of the year, we expect volume to continue to be strong, and we will be receiving the added benefit of raw material cost recoveries through our material pass through mechanisms with our OEM customers. In addition, we expect to see continued improvements in both Gunite and Brillion operations as we continue to execute our plans to fix and grow these businesses.”
