EVANSVILLE, Ind. – Accuride has announced its financial results for the fourth quarter and fiscal year ended Dec. 31, 2010.

Net sales in 2010 were $764 million, compared with $570.2 million in the prior year. The company said this increase in sales was the result of increased demand from customers in the commercial vehicle industry. Accuride reported a net loss of $75.7 million, or ($4.83) per diluted share, compared to a net loss of $140.1 million, or ($35.90) per diluted share, in 2009.

Net sales for the fourth quarter of 2010 were $193.7 million compared to net sales of $146.2 million in the fourth quarter of 2009, an increase of 32.5 percent. Sales increased in the Wheels and Components segments by 17.6 percent and 41.8 percent, respectively.

 “2010 was a pivotal and successful year for Accuride. Despite the challenging economic and industry conditions, Accuride pursued and implemented strategic initiatives to successfully restructure the company’s operations and capital structure, strengthen customer relationships and increase market share,” said Rick Dauch, Accuride’s president and CEO. “I am looking forward to building upon the momentum that began in 2010 and am honored to serve as the company’s new president and CEO.”
 
In 2010, fourth quarter gross profit increased to $14.2 million, or 7.3 percent of net sales, from a gross profit of $4.8 million in the fourth quarter of 2009. Gross profit improved compared to the prior year due to the contribution from increased net sales, better capacity utilization with higher sales volumes and improvements in operating efficiencies.

The company reported an operating loss of $6.1 million compared to an operating loss of $10.9 million in the prior year period. Operating expenses in 2010 included $7.2 million in professional fees related to the conversion offer and other activities related to divestitures and a $2.3 million charge related to a product campaign. Operating expenses in 2009 included $3.1 million in prepetition professional fees and non-cash other intangible asset impairments of $3.3 million. Adjusted EBITDA was $15.1 million for the first quarter of 2010, compared to $10.6 million for the same period in 2009.

The company reported a net loss of $110.9 million, or ($4.47) per diluted share, compared to a net loss of $39.7 million, or ($8.35) per diluted share for the same three month period in 2009. The loss in 2010 included $166.7 million in pre-tax inducement expenses and pre-tax non-cash mark-to-market gains of $70.0 million. The loss in 2009 included $0.9 million in restructuring costs and $20.5 million in other unusual items.

Combined net sales in 2010 were $764 million, which was an increase of 34 percent, compared to net sales of $570.2 million for 2009. Sales increased in the Wheels and Components segments by 19.8 percent and 39.1 percent, respectively.

Gross profit in 2010 increased $63.7 million to $61.4 million from a loss of $2.3 million in the prior year primarily due to the contribution from increased net sales, better capacity utilization with higher sales volumes and improvements in operating efficiencies.

The company reported a net loss of $75.7 million in 2010 compared to a net loss of $140.1 million in the prior year period. The loss in 2010 included $166.7 million in pretax inducement expenses and pre-tax mark-to-market gains of $75.6 million. The loss in 2009 included $11.4 million in restructuring costs and $43.5 million of other unusual items.

“I am very pleased with the significant improvements that we made to Accuride’s balance sheet during 2010,” said Jim Woodward, Accuride’s senior vice president of finance and CFO. “Completing the conversion offer and relisting our common stock on the New York Stock Exchange during the fourth quarter were the final steps in our efforts to create a capital structure that will allow the company to support the eventual increase in industry demand and seek opportunistic acquisitions and joint ventures in pursuit of our strategic plans.”

“The hard work of everyone at Accuride has positioned the company to capitalize on the upturn in the North American commercial vehicle industry,” said Dauch. “While we continue to be cautiously optimistic about the timing of the industry upturn, particularly in the medium-duty segment of the market, recent strength in Class 8 and Trailer order activity is encouraging. We expect 2011 Class 8 production levels to be in the range of 220,000 to 235,000 units. We are projecting revenue for 2011 in the range of $875 to $925 million and adjusted EBITDA in the range of $100 to $115 million. As the health of the industry continues to improve, we will build upon Accuride’s strong foundation and begin to selectively and profitably grow the company.”