Accuride Reports 4th Quarter Loss Despite Higher Sales

Accuride Corp. on Tuesday reported higher revenues in the final quarter of 2014 compared to a year earlier, but moved from a profit to a loss.

Fourth quarter net sales from continuing operations for the commercial vehicle components supplier were $172.8 million, an increase of 19.4%. This primarily reflected the impact of stronger industry conditions in the company’s Wheels and Brillion segments during the quarter, according to Accuride.

The company reported a net loss of $5.1 million, or 10 cents per share during the quarter, compared to net income of $1.9 million, or 4 cents per share a year earlier. Accuride’s operating income was $3.7 million for the quarter, as compared to an operating loss of $1.7 million in the fourth quarter of 2013.

Net sales from continuing operations 2014 were $705.2 million, an increase of 9.7% from the year before. This primarily was due to higher vehicle production by North American commercial vehicle manufacturers and strengthening in certain industrial end-markets with its Brillion Iron Works business, according to Accuride.

The company reported a net loss of $2.3 million for 2014 compared to a loss of $38.3 million a year earlier, or 4 cents per share versus 56 cents per share during the same time frame. Operating income was $32.6 million compared to an operating loss of $1.2 million.

"We are pleased with the strong fourth-quarter and full year results Accuride delivered in 2014, and expect 2015 to be an even better year for us," said Rick Dauch, president and CEO. “As favorable freight volumes and fuel prices have enabled many fleets to expand their operations, truck and trailer production levels have climbed to the best we’ve seen in a decade.”

Accuride Wheels segment net sales were $102.1 million in the fourth quarter of 2014, up 21.5%, from the same period in 2013. This was primarily due to stronger OEM demand and market share gains in the aftermarket, according to the company.  

The company’s Gunite segment, which consists of the Accuride’s wheel end business, had net sales of $36.6 million, down 2.7%, from the fourth quarter of 2013. The company said this was due primarily to slightly lower aftermarket demand for brake drums.  

Accuride’s Brillion Iron works saw net sales increase nearly 48% to $34.1 million.

The company reaffirmed its goal for 2015 net sales to be in the range of $725 million to $775 million, an increase of 6% from its 2014 results.