Accuride saw a significant drop in revenue, with sales of their products dropping across the board. Accuride Wheels, which accounts for over half of their business, rang in $88 million in sales, ten percent from the previous year. Gunite wheel components rang in $40.8 million in revenue, down 17.7 percent. And subsidiary Brillion Iron Works, a company that has manufactured farm equipment since 1890, saw sales fall 32.7 percent to $26.5 million.
The company is in dire straits, and has been struggling for some time. Accuride filed for Chapter 11 in November 2009 and was forced to restructure in early 2010. They have been unable to extricate themselves from their financial woes, and currently carry $333.9 million in debt, versus $28 million cash on hand.
Accuride lowered revenue expectations for 2013 to between $625 and $650million, exceptionally lower than previous analyst estimates of $752 million.
For their third quarter 2013 earnings report, Accuride reported a net loss of $8.5 million, or $0.18 per share, versus the net loss of $15.8 million, or $0.33 per share, from the same period a year ago. Revenue for the quarter was $155.3 million, as compared to $179.9 million from the previous year. Analysts were expecting a net loss of $0.10 per share on revenues of $175 million.
Accuride tanked on the news, shedding 25.11 percent by midday to hit $3.37 a share.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer