Accuride sees $10 million quarterly loss

greenspun.com : LUSENET : Y2K discussion group : One Thread

Stung by the sharp downturn in the big-truck business, wheel manufacturer Accuride Corp. said Thursday it lost more than $10 million in the third quarter and more than $22 million during the first nine months of the year.

"The results for the third quarter were in line with our expectations," President and CEO Bill Greubel said in a statement, warning that business could remain down "over the next few quarters."

Sales through the first nine months were down almost 33 percent compared with the same period last year.

That parallels a 47 percent drop in North American production of heavy Class 8 trucks, such as semi-trailer trucks.

During the third quarter, Accuride lost $10.3 million, compared with a loss of $1.2 million in the same quarter last year.

Through the first nine months, the net loss totaled $22.5 million, compared with a net profit of $9.1 million a year ago.

But the company said it remains financially secure, with $27 million in cash on hand and an available line of credit totaled $52.5 million.

The cyclical slowdown in the truck market began in mid-2000 after the industry posted its two best years ever.

Early this year, Accuride cut 50 salaried positions, including 18 in Henderson. In May, it announced plans to close a light-truck plant it opened three years ago in Columbia, Tenn.

It also reduced the number of temporary workers who took the place of the 425 union workers at the Henderson plant, who went on strike in February 1998 and remain locked out of the plant. Contract negotiations have been held only sporadically the past three years.

INKY.com

-- Anonymous, November 02, 2001


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