Dallas, Texas 07/28/2015 (Financialstrend) – Accuride Corporation (NYSE:ACW) rallied in the market by more than 14% on posting better than expected second quarter results. The leading supplier of components for the vehicle industry posted earnings of $6.3 million translating to earnings of 13 cents share. The better than expected results were aided by improving conditions in the vehicle industry as truck and trailer production continues to increase
Growth momentum To Continue
CEO, Rick Dauch, attributed the record profit to share gains for aluminum wheels as well as world-class operating performance backed by cost containment by the Wheels and Gunite division. Strong performance should continue into the second half of the year as Accuride Corporation (NYSE:ACW) continues to register a strong business for its Wheels and Gunite business.
Accuride Corporation (NYSE:ACW) expects a near-record year on the earnings front as conditions in North American Commercial vehicle industry continues to improve. The company continues to experience strong demand for its aluminum wheels and Gunite drums as customers remain highly interested in Made-in-the-USA brands.
Accuride Corporation (NYSE:ACW) is seeking to generate more shareholder value by exploring potential opportunities that have the potential to expand the company’s business globally. During the quarter, the company generated $185.4 million in net sales compared to $181.6 million generated last year. The increase was down to improving industry conditions, especially on the wheels segment.
Accuride Corporation (NYSE:ACW) Wheels segment generated net sales of 114.4 million an increase of 13.1% from the same period last year. Stronger OEM demand and market share gains in the market have been cited as the reason behind the increase. Gunite generated net sales of $47 million down by 2.7% from the second quarter of last year, mostly hurt by lower pricing as a result of reduced raw material costs.
The management team projects net sales of between $700 million and $750 million for the current fiscal year.