Accuride Reports Profitable Second Quarter, Six-Month Loss
Commercial vehicle components supplier Accuride Corp. reported a profitable second quarter but still posted a net loss for the six-month period due to headwinds in key markets.
Quarterly net income dropped to $2.1 million, or 5 cents per share, compared with $6.3 million, or 13 cents, in the second quarter of 2015.
Net sales for the period ended June 30 were $164.1 million, down 11.5%, or $21.3 million, compared with net sales of $185.3 million for the 2015 period.
The company’s report noted, “Our markets and those of our customers are becoming increasingly competitive as the global, North American and European economic recoveries remain modest.”
Accuride said its products include commercial vehicle wheels, wheel end components and assemblies as well as specialty cast iron components for global industrial end markets.
In the North American commercial vehicle market, new equipment purchases are at or near replacement levels, it said.
Accuride said North American Class 8 production in the six-month period fell to 127,118 trucks, down from 167,955 in the year-earlier period, citing data from ACT Research Co.
Also, “We are also continuing to see the impact of low-cost country sourced products in our markets, which has particularly impacted the aftermarket for steel wheels and brake drums in North America,” the company said.
It said it has adjusted plant schedules and staffing levels to cope with anticipated lower volumes.
Accuride reported a net loss of $3 million, or 5 cents, for the six-month period, down from net income of $5.7 million, or 12 cents, a year earlier.
Revenue fell to $325 million from $369 million in the year-earlier period.
