Accuride Corporation Reports First Quarter Results for 2009
EVANSVILLE, May 7, 2009: Accuride Corporation (OTCBB: AURD), a leading manufacturer and supplier of commercial vehicle components, today announced its financial results for the first quarter ended March 31, 2009.
The Company reported results of $143.6 million in net sales for the first quarter of 2009, compared to $238.2 million for the first quarter of 2008, a decrease of 39.7 percent. The Company reported a net loss of $31.1 million, or ($0.86) per diluted share, including a loss on extinguishment of debt totaling $3.5 million, or ($0.10) per diluted share, compared with a net loss of $11.7 million or ($0.33) per diluted share, in the prior year.
The Company’s results reflect the impact of the prolonged and severely depressed demand for trucks and trailers in the commercial vehicle industry. The three major segments Accuride supplies (North America Class 5-8 vehicles, U.S. Trailers, and the related aftermarket channels) have all suffered year-over-year losses mainly due to a soft economy and a recessionary freight environment. During the first quarter, all three commercial vehicle segments experienced major decreases in production. Class 8 production fell approximately 43 percent year-over-year where as Class 5-7 and U.S. Trailers decreased 47 percent and 49 percent, respectively. In addition, demand from aftermarket customers declined significantly from the prior year as customers reduced inventory and delayed purchases.
While the economy is still in the depths of a very deep recession, there have been some preliminary signs of improvement. Some indicators are becoming less negative as the search for the bottom continues.
Throughout the past several months of the recession, commercial vehicle indicators have worsened month-over-month. However, with the help of those indicators mentioned above, signs of hope are rising as markets appear to be stabilizing somewhat. March Class 8 net orders rose 21 percent month-over-month on an adjusted basis. Class 5-7 and U.S. Trailer net orders have remained stable since January.
Overall the future of the commercial vehicle industry remains bright. Freight tonnage is forecasted to steadily increase throughout the next several years. This increase in freight will continue to translate into increased demand for trucks and trailers going forward.