Accuride (ACW) Prelim. Q3, FY16 Results Miss Views

October 17, 2016 7:32 AM EDT
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Accuride Corporation (NYSE: ACW) issued preliminary results for the third quarter ended September 30, 2016, and revised its full-year 2016 Revenue, Adjusted EBITDA and Free Cash Flow guidance. The preliminary results and revised 2016 guidance exclude the results of the recently divested Brillion Iron Works business.

Commenting on Accuride’s preliminary third quarter 2016 results and the revision of its guidance for full-year 2016, President and CEO Rick Dauch said, “This continues to be a challenging time for the North American commercial vehicle industry. The negative impact of this cyclical downturn on demand for aluminum wheels and softness in the aftermarket for Gunite’s products has been more significant than anticipated. While our leadership team proactively took aggressive actions earlier this year to lower our costs in response to these headwinds, forecasted industry volumes continued to be revised downward for the second half of the year and we believe that this challenging market environment will continue into 2017.”

Preliminary Third Quarter 2016 Results

Accuride’s preliminary unaudited results from continuing operations indicate that revenue for the third quarter 2016 is expected to be approximately $125 million, compared with $145.6 million in the third quarter 2015. Accuride expects Adjusted EBITDA in the third quarter 2016 to be in the range of $13 million to $14 million, compared with $21.6 million in the same quarter last year.

(NOTE: The Street sees Q3 revenue of $139.5 million.)

The third quarter 2016 results described in this release are preliminary, and the Company has not completed its full review of interim financial information for the third quarter ended September 30, 2016.

2016 Guidance

Accuride expects 2016 revenue from continuing operations to be in the range of $535 million to $545 million, with Adjusted EBITDA to be $68 million to $72 million. Free Cash Flow is expected to be $2 million to $6 million, excluding approximately $10 million of negative Free Cash Flow related to Brillion prior to its divestiture.

(NOTE: The Street sees FY16 revenue of $584.1 million.)

Adjusted EBITDA is defined as net income or loss before income tax expense or benefit, interest expense, net, depreciation and amortization, noncontrolling interest in subsidiaries, restructuring, severance and other charges, impairment and currency losses, net. Free Cash Flow is defined as cash from operations less purchase of plant, property and equipment. Adjusted EBITDA and Free Cash Flow should not be considered alternatives to net income (loss), cash from operations or other traditional indicators of operating performance and cash flows determined in accordance with accounting principles generally accepted in the United States.

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