EVANSVILLE,Ind. – Accuride Corp. has reported financial results for the fourth quarter and fiscal year 2012 ended Dec. 31, 2012.
Fourth quarter 2012 net sales from continuingoperations were $176.3 million, compared with $242.5 million in the same period in 2011, a decline of 27.3 percent, primarily reflecting the impact of weaker economic and industry conditions during the quarter. The company experienced a $150.4 million operating loss for the quarter, as compared to $9.5 million of operating income in the fourth quarter of 2011. The 2012 operating loss included $139.6 million in one-time impairment charges related to goodwill and other assets related to Gunite and other one-time charges (as detailed below). The company reported a net loss of $156.5 million, or $3.30 per share during the quarter, including one-time charges.
Net sales from continuing operations for the fiscal year ended Dec. 31, 2012 were $929.8 million, compared with $936.1 million in the prior year, a decrease of 0.7 percent. The company said the decline in net sales resulted from weak second-half industry conditions that saw commercial vehicle manufacturers cut production schedules, previously announced OEM customer decisions for Gunite, and aftermarket demand fall. In addition, Brillion’s industrial end-markets were weak during the second half of 2012. The company said it believes the industry cycle is at or near the bottom, with a market recovery expected in the second half of 2013.
Accuride reported a fully diluted loss per share of $3.76 for the year ended Dec. 31, 2012, which includes the impact from the one-time impairment charges for Gunite of approximately $2.78 per share andother one-time charges of approximately 17 cents per share. Cash was $26.8 million at year-end, while free cash flow was negative $31.2 million for the year, which included $59.2 million of capital expenditures to selectively expand capacity and improve facilities and operations.
Commenting on Accuride’s results and business outlook, President and CEO Rick Dauch said, “We continue to take the tough, necessary actions to ‘fix’ Accuride and restore our reputation as an industry-leading supplier. The majority of our capital investments and restructuringactivities are now complete, positioning our business units to compete aggressively in the marketplace now and during the expected industry upturn in the second half of 2013.
“Operational performance over the past six months in the areas of on-time delivery, lead-time reduction, quality and warranty are at significantly improved levels. However, we continue to face challenging,near-term market conditions. The good news is that most key economic indicators point to a recovery in Class 5-8 Truck and Trailer builds in the back half of 2013,” Dauch added.
