Accuride (ACW) Pres/CEO Resigns, Names Lasky as Successor; Announces Restructuring Initiatives Eliminating 11% of Workforce

September 23, 2008 8:15 AM EDT

Accuride Corporation (NYSE: ACW) today announced that John Murphy tendered his resignation as President and CEO, and as a Director of Accuride, effective September 22, 2008. Upon acceptance of Murphy’s resignation, Accuride’s Board appointed William Lasky as interim President and CEO.

Also, as a result of the restructuring initiatives, Accuride will eliminate a total of 392 positions, or 11%, of its total workforce: 159 salaried positions, or 18% of current level and 233 hourly employees, or 9% of current level.

Accuride expects to incur a one-time restructuring charge of approximately $14.3 million in Q308 of which a total of $10.0 million will impact cash during 2008 and 2009. It is expected that the restructuring will save the Company an estimated $6.0 million in 2008 and generate annual cost savings of approximately $27.5 million thereafter.

In addition to the workforce reduction, the Company reiterated that it would continue to pursue initiatives that would reduce overhead costs and improve asset utilization through the redeployment of equipment and rationalization of facilities, while maintaining sufficient capacity to service customer needs during peak build levels.

Accuride confirmed its commitment to the aftermarket today by announcing the creation of a dedicated Aftermarket Division to strengthen its services and offerings to its customer base.

Accuride Corporation engages in the design, manufacture, and distribution of components for trucks, trailers, and other vehicles.

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