Accuride Issues 2016 Guidance
February 09 2016 - 5:48PM
Business Wire
- Net sales of $650 million to $700
million
- Adjusted EBITDA of $65 million to $80
million
Accuride Corporation (NYSE: ACW) – a leading supplier of
components to the North American and European commercial vehicle
industries – today issued fiscal year 2016 guidance for net sales
and Adjusted EBITDA and reconfirmed its previous guidance for
fiscal year 2015.
2016 Guidance Issued
Accuride expects 2016 net sales to be in the range of $650
million to $700 million, with Adjusted EBITDA in the range $65
million to $80 million. The Company is basing these expectations
for its 2016 guidance on the following projections for North
American commercial vehicle production and other key assumptions
for the year:
- Class 8 production levels in the range
of 240,000 to 260,000 units
- Class 5-7 production levels in the
range of 220,000 to 240,000 units
- Trailer production in the range of
270,000 to 290,000 units
- European heavy and medium duty truck
builds in the range of 510,000 to 530,000 units
- Commercial vehicle aftermarket growth
in the range of 1 percent to 3.5 percent
- Brillion business unit net sales down
15 percent to 20 percent versus prior year
- Full year consolidation of Gianetti
results
2015 Guidance Reconfirmed
- Net sales of $675 million to $700
million
- Adjusted EBITDA of $80 million to $85
million
- Free cash flow of $10 million to $15
million
Accuride expects to release its final 2015 financial results in
late-February after it completes its year-end audit process and its
ongoing goodwill and asset impairment analysis. Based on previously
reported and on-going declines in Brillion’s end-markets, the
Company expects that it will record a non-cash goodwill impairment
charge of up to $4.4 million, which represents the current amount
of goodwill recorded on the books of the Brillion business
unit.
Commenting on Accuride’s reconfirmed 2015 guidance, President
and CEO Rick Dauch said, “Accuride expects to report another year
of strong results in 2015 despite the significant end-market
challenges in our Brillion segment, which is highly exposed to the
oil and gas market. The Wheels and Gunite segments performed
exceptionally well as their award-winning facilities operated at
higher efficiencies and both businesses further improved their
market share positions. Having completed a concentrated period of
capital investment needed to fix the business, we continue to
expect to report strong cash flow and demonstrate a solid liquidity
position. We also expanded our footprint beyond North America in
2015 by acquiring a majority stake in Gianetti Ruote, located in
Italy. This strategic move leverages our current customer base and
allows us to develop new international relationships leading to
growth and increased end-market diversification.
“Looking toward 2016, we expect our top line growth to be
impacted by the decline in Class 8 production in North America, as
it returns to normalized levels, and the continued softness in
Brillion's end markets. Countering these factors is expected demand
strength in the North American medium-duty truck, trailer and
related aftermarkets as well as the full-year results of the
Gianetti business. While our profitability will be impacted by the
decline in North America revenue and a continued effort to bring
the Gianetti facility up to Accuride’s operating standards, we
expect to maintain our strong liquidity position.”
Accuride to Webcast BB&T Capital Markets Conference
Presentation
Rick Dauch, Accuride President and CEO, and Michael Hajost,
Senior Vice President and Chief Financial Officer, will speak to
the investment community on Wednesday, February 10, 2016, beginning
at 10:00 a.m. EST. Accuride's presentation will be broadcast live
through an audio webcast available at the Investors section of the
company’s website – www.accuridecorp.com/investors. Presentation
slides will be available for download at the site and the webcast
will be available for replay following the event.
About Accuride Corporation
With headquarters in Evansville, Ind., USA, Accuride Corporation
is a leading supplier of components to the North American and
European commercial vehicle industries. The company’s products
include commercial vehicle wheels; wheel-end components and
assemblies; and specialty cast-iron components for a range of
agricultural, construction and mining, and oil and gas equipment
applications. The company’s products are marketed under its brand
names, which include Accuride®, Accuride Wheel End
SolutionsTM, Gunite®, Gianetti RuoteTM and
BrillionTM. Accuride’s common stock trades on the New York
Stock Exchange under the ticker symbol ACW. For more information,
visit the Company’s website at http://www.accuridecorp.com.
Forward-Looking Statements
Statements contained in this news release that are not purely
historical are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, including
statements regarding Accuride’s expectations, hopes, beliefs, and
intentions with respect to future results. Such statements are
subject to the impact on Accuride’s business and prospects
generally of, among other factors, market demand in the commercial
vehicle industry, general economic, business and financing
conditions, labor relations, governmental action, competitor
pricing activity, expense volatility and other risks detailed from
time to time in Accuride’s Securities and Exchange Commission
filings, including those described in Item 1A of Accuride’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2014.
Any forward-looking statement reflects only Accuride’s belief at
the time the statement is made. Although Accuride believes that the
expectations reflected in these forward-looking statements are
reasonable, it cannot guarantee its future results, levels of
activity, performance or achievements. Except as required by law,
Accuride undertakes no obligation to update any forward-looking
statements to reflect events or developments after the date of this
news release.
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version on businesswire.com: http://www.businesswire.com/news/home/20160209006832/en/
Accuride CorporationInvestor Relations:Todd Taylor,
812-962-5105ttaylor@accuridecorp.comorMedia Relations:Timothy G.
Weir, APR, 812-962-5128tweir@accuridecorp.com
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