Accuride Announces Cost-Cutting, Lower Earnings Expectations
October 10, 2012
In addition, Navistar and Paccar notified the company that they will no longer offer Gunite hub and drum assemblies as standard equipment on their vehicles beginning in the third and fourth quarters of 2012, respectively. Fleets will continue to have the option to specify Gunite products.
The company announced it's "taking the necessary actions to respond to these changing business conditions."
The previously announced closure
of the Elkhart, Ind., facility and the consolidation of the Brillion, Wis., machining operations into Gunite's Rockford, Ill., facility have been pulled ahead to the fourth quarter of 2012.
The company has also reduced its corporate salaried workforce by 14%, along with other cost reduction efforts.
Early this year, the company said its 2011 and 2012 investments in the Accuride Wheels and Gunite business units would total $110 million, and was aggressively expanding its production capacity to meet growing aluminum wheel demand.
The company says its expected 2012 performance will be below its previously announced guidance for 2012.
Accuride didn't release a new forecast for profits. It had previously projected a net loss of 5 cents to 12 cents per share for 2012, included a 6-cent loss related to the closing of the Elkhart plant, according to The Associated Press. Its stock hit an all-time low after the announcement, according to published reports.
"We are taking the actions necessary to reduce our cost structure in the face of challenging and rapidly changing industry conditions, without jeopardizing our operational turnaround and long-term strategic objectives," said Accuride President and CEO Rick Dauch.
The company emerged from bankruptcy reorganization in 2010.Related Stories:8/28/2012 Leadership Changes at Accuride4/26/2012 Accuride On Track for 2012, Company Says3/7/2012 Accuride Chairman Stepping Down; Company Names VP/CFO 1/26/2012 Accuride Restructures, Announces Major Investments in NAFTA Capacity and Capability