EVANSVILLE, Ind. – Accuride Corp. has reported strong financial results for the second quarter ended June 30, 2014, as its “Fix & Grow” strategy supports delivery of continued margin and profitability improvement.
Second quarter 2014 net sales from continuing operations were $181.6 million, compared with $179.9 million in the same period in 2013, an increase of 0.9 percent. The company achieved operating income of $12.3 million for the quarter, compared to operating income of $6 million in the second quarter of 2013. Accuride reported net income from continuing operations of $5.1 million, or 11 cents per share, during the quarter, compared to a 2013 second-quarter net loss of $5.1 million, or 11 cents per share.
Commenting on Accuride’s second quarter results and business conditions, President and CEO Rick Dauch said, “We are pleased with our overall results for the quarter, which again demonstrated the return on our strategic investments to ‘Fix & Grow’ Accuride in anticipation of the commercial vehicle industry recovery now underway. Equipment orders were higher each month this quarter over the prior year, extending backlogs and filling build schedules in the segments we serve, while freight demand and the aftermarket stayed healthy. As the industry outlook solidified this quarter, so did Accuride’s profit-generation power. We doubled operating income, aiding further expansion of net income and adjusted EBITDA margins.
Accuride said it was net income-positive on a year-to-date basis through June for the first time since the onset of the industry recession in 2007. Wheels and, particularly, Gunite saw continued incremental margin expansion in the quarter due to reduced costs and improved operating efficiency.
Accuride CFO Greg Risch said, “Based on the expectation of continued strengthening in our commercial vehicle end markets and additional incremental new business, we are increasing our guidance range for 2014 net sales to $675 million to $700 million. We also are increasing our full-year adjusted EBITDA guidance range by $10 million to $70 million to $80 million, due primarily to the impact of expected increase in net sales and business unit operating improvements.”
This revised 2014 guidance is based on projected North American Class 8 production levels in the range of 280,000 to 290,000 units, North American Class 5-7 production levels in the range of 210,000 to 215,000 units and North American Trailer production in the range of 250,000 to 260,000 units. Accuride expects net sales for its Brillion business unit to be approximately 5 percent higher than 2013, while its end markets are still not expected to recover until 2015-’16.
