Accuride Corporation, a leading manufacturer and supplier of commercial vehicle components, announced net sales of $325.4 million for the first quarter of 2007, compared to $359.9 million for the first quarter of 2006, a decrease of 9.6%. The decrease in net sales was primarily a result of the reduced demand due to new emission standards that became effective in 2007, and partially offset by $8 million of revenue resulting from a resolution of a commercial dispute with a customer.
A net loss of $1.9 million, or ($0.05) per diluted share, was reported for the first quarter of 2007 compared to net income of $20.0 million, or $0.58 per diluted share, for the first quarter of 2006. The net loss was impacted by special items totaling $13.1 million, or $0.37 per diluted share, which was $20.1 million on a pre-tax basis. The items included an $8 million increase in revenue from a resolution of a commercial dispute with a customer, which was offset by pre-tax costs of $18.2 million associated with a reduction in the employee workforce in our steel wheel operations, $9.8 million in accelerated depreciation related primarily to light steel wheel assets, and $100,000 related to other non-operating and non-recurring items.
“As a result of our planned exit from a low margin light-duty steel wheel business, we completed a detailed analysis of the utilization of steel wheel capacity in future years. The resultant business restructuring of our steel wheel operations will strengthen our long-term competitive position,” said John Murphy, Accuride’s President and Chief Operating Officer.
Adjusted EBITDA was $49.2 million for the first quarter of 2007, compared to an Adjusted EBITDA of $54.5 million for the same quarter in 2006, a decrease of 9.7%. The purpose and reconciliation of Adjusted EBITDA for the Company to the most directly comparable GAAP measure is set forth in the accompanying schedules.