Accuride Posts Muted Quarter Results

Vehicle component manufacturer Accuride Corporation has published details of the company’s second quarter (to June 30) results. Net sales of US$245.1 million were recorded during the quarter, a sizeable drop from the $361.7 million earned during the same quarter of 2006. Half year net sales, at $570.6 million, were similarly lower than the previous year’s result, when net sales of $721.7 million were recorded between January and June. The company attribute the lower sales to a reduced demand for commercial vehicles with engines compliant with new emissions standards that came into effect in 2007.

“As expected, significant reductions in commercial vehicle production have impacted our results in the quarter as demand for vehicles with EPA compliant engines was weak,” said Accuride chairman and CEO Terry Keating. “We have anticipated this downturn fairly well so far and are using this period of reduced production levels to invest in core businesses and undertake necessary maintenance. These actions ensure we are well positioned for the upswing in the cycle in 2008 and beyond.”

Net income of $4.9 million, or $0.14 per diluted share, were reported during the quarter, much lower than last year’s Q2 result of $18.3 million or $0.53 per diluted share. Adusted EBITDA for the quarter was $28.3 million compared with $56.3 million a year earlier.