Accuride Posts Q4, Annual Results
Components manufacturer Accuride Corporation has released its financial results for Q4 2006 and for the twelve months ending December 31, 2006. The company reported Q4 net sales of US$344.9 million, an increase of 15 per cent compared with the same period the previous year. Accuride attributes this expansion primarily to the continued robust demand in the commercial vehicle industry and the partial pass-through of raw material costs.
For the twelve-month period ending December 31, 2006, net sales were $1408.2 million, compared to $1229.3 million a year earlier. Compared with the pro forma net sales of $1283.6 for 2005, this year’s result equates to an increase of 9.7 per cent. The pro forma result takes into account Accuride’s acquisition of Transportation Technologies Industries Inc. in late January 2005.
Net income in Q4 was $14.3 million, a decrease of 4 per cent over the previous year’s fourth quarter period. For all of 2006 net income came to $65.1 million, an increase of 24.2 per cent over the 2005 pro forma income.
Accuride’s management voiced a positive interpretation of the latest results while recognising the complications the year brought. “We were able to drive strong top-line growth in 2006,” stated chairman and CEO Terry Keating. “Demand was so great, however, that many of our plants operated at peak capacity throughout the year, which, when coupled with rising economic costs, caused our margins to be negatively impacted.” Mr. Keating added that he expects 2007 will be “very challenging.”