Accuride Earnings Report Includes Cuts
Evansville-based Accuride Corp. (NYSE: ACW) is reporting a first quarter net loss of $5.2 million, compared to a loss of $588,000 during the same period the previous year. The company says lower volumes in the commercial vehicle and industrial end markets have led to layoffs and other cost reduction measures.
Chief Executive Officer Rick Dauch said the company had to deal with lower demand for North American Class 8 trucks, for which Accuride supplies parts. He said Accuride took several aggressive actions to align itself to the lower volumes, including layoffs at select facilities for its Wheels subsidiary this year, along with layoffs at its Brillion subsidiary late last year.
Dauch added the company reduced corporate spending for 2016, including the elimination of 13 corporate positions, which is expected to save the company $3 million this year. Accuride also reduced capital expenditures by $5 million.
"The combined strength in the North American medium-duty and trailer markets, in conjunction with these corrective actions, are the primary reason we are maintaining our key financial guidance ranges for 2016," said Dauch. "Within this context, we will continue to pursue opportunities to expand share and drive profitable growth in 2016 and beyond."
The first quarter earnings report came nearly one month after the company announced it had restored its compliance with the New York Stock Exchange. Accuride had been in danger of delisting after being notified in February that it had not met the NYSE’s minimum threshold.