Accuride Corporation (NYSE: ACW) reported that second-quarter adjusted EBITDA improved year-over-year to $23.2 million, or 12.8 percent of net sales, compared to $17.8 million, or 9.9 percent of net sales, in the same quarter of 2013.
Second-quarter net sales from continuing operations were $181.6 million, compared with $179.9 million in the same period in 2013, an increase of 0.9 percent. The company achieved operating income of $12.3 million for the quarter, compared to operating income of $6.0 million in the second quarter of 2013. The company reported net income from continuing operations of $5.1 million, or $0.11 per share, during the quarter, compared to a 2013 second-quarter net loss of $5.1 million, or $0.11 per share. Net income in second quarter of 2014 included a benefit of $2.2 million, or 0.04 per share, related to Mexico tax reform and a reduction in our long-term income tax payable.
As of June 30, 2014, Accuride had $31.9 million of cash plus $40.1 million in availability under its ABL Credit Facility, for total liquidity of $72.0 million.
President and CEO Rick Dauch said, “We are pleased with our overall results for the quarter, which again demonstrated the return on our strategic investments to ‘Fix & Grow’ Accuride in anticipation of the commercial vehicle industry recovery now underway.
“Equipment orders were higher each month this quarter over the prior year, extending backlogs and filling build schedules in the segments we serve, while freight demand and the aftermarket stayed healthy. As the industry outlook solidified this quarter, so did Accuride’s profit-generation power. We doubled operating income, aiding further expansion of net income and Adjusted EBITDA margins. Accuride was net income positive on a year-to-date basis through June for the first time since the onset of the industry recession in 2007.”
Commercial vehicle OEMs further increased production in the second quarter in line with net order growth within each segment Accuride serves. Carriers continue to replace older equipment and expand fleets to meet rising freight demand. Class 8 net orders for the entire quarter increased 19 percent year-over-year for the strongest showing in eight years. Class 5-7 and Trailer net orders also improved, with year-over-year increases of 7 percent and 35 percent, respectively.
Production also grew at a healthy pace in the quarter, with Class 8 and 5-7 truck builds both increasing 10 percent, and Trailers up by 11 percent year over year.