Accuride Posts Quarter Loss Results

Components manufacturer Accuride reports that in the quarter to March 31, 2008 the company achieved sales of US$238.2 million, a decrease of 26.2 per cent on the same quarter a year earlier. This decline in net sales, says the company, reflects a 33 per cent decline in North American Class 8 production and a $24 million reduction due to products re-sourced by a light vehicle customer during 2007.

A net loss of $11.7 million was reported for the first quarter of 2008, compared to a loss of $1.9 million in the corresponding quarter of 2007. Adjusted EBIDTA was $18.5 million, compared to adjusted EBIDTA of $49.2 million a year earlier.

As of March 31, 2008 the company had a net debt of $525.9 million. During the quarter cash from operating activities was a negative $28.4 million and capital expenditures totalled $10.4 million, resulting in negative free cash flow of $38.8 million, compared to negative free cash flow of $7.6 million in the first quarter of 2007. “Despite the significant free cash flow usage in the first quarter, we anticipate being free cash flow positive on a full-year basis for 2008,” said Accuride CEO and president John Murphy.

“The increase in first quarter revenue compared to the fourth quarter of 2007 reflects positive results related to organic growth and other new business,” continued Murphy. “Unfortunately, high costs and one-time inefficiencies including the labour dispute at our Rockford facility eroded the results of these increases. Since the completion of a mutually acceptable resolution to the labour dispute late in the first quarter, we have experienced significant productivity improvements in our wheel-end business that we currently expect to continue for the remainder of the year.”