EVANSVILLE, Ind. — Accuride Corp. has reported that third quarter 2008 sales were $239.5 million, compared with $220.6 million in the prior year period. The company said the increase in sales is related to strong demand for wheel-end components and military wheels as well as raw material recovery surcharges, partially offset by reduced demand from customers in the commercial vehicle industry.
On a U.S. GAAP basis, the company reported a net loss of $201.2 million, or ($5.67) per diluted share, compared with a net loss of $1.2 million, or (3 cents) per diluted share, in the prior year. The results for the quarter were impacted by $195.5 million in non-cash goodwill and other intangible impairment and $6.5 million of restructuring charges totaling $202 million, or ($5.69) per diluted share.
Sales of $239.5 million in the third quarter of 2008 were up 8.6 percent compared to the prior year quarter. Components sales increased 23.6 percent during the third quarter, largely driven by increases in wheel-end and other industrial component sales and raw material surcharge recovery. Wheels sales declined 7.3 percent due to reduced demand for Class 5-7 vehicles and trailers, as well as reduced sales to light vehicle steel wheel customers.
Gross profit declined to $11.9 million, or 5 percent of sales, including $6.8 million in costs related to the recently announced restructuring initiatives compared to $13.3 million, or 6.0 percent of sales, in third quarter, 2007.
The Company incurred a restructuring charge of approximately $11.5 million in the third quarter of 2008, of which a total of $7.2 million will impact cash during 2008 and 2009. It is expected that the restructuring will save the Company an estimated $6 million in 2008 and generate annual cost savings of $27.5 million thereafter. The impacts and benefits of the second phase of restructuring are expected to be announced in late fourth quarter.