Northern,WI  10/10/2012 (BasicsMedia)  —  Accuride (NYSE:ACW): -33% As Truck Orders Slow to a Crawl and many are asking how important is the indicator.  Is it reflective of an economy slowing down, or is this company specific?  2012 has not been kind to ACW and if I were to compare them to Illinois Tool Works (NASDAQ:ITW) you would conclude it is company specific.

Shares of ACW are down 60+% in 2012 and ITW are up on the year as a comparitive..and some would question if you can truly compare these 2.  I only look at them as manufacturers and I know people at ITW who talk about monthly sales and the success or failure of meeting numbers….so I have some input for the state of the demand cycle for fasteners,brake pads, etc as a comp..the question will continue thru the earnings cycle as to the state of the economy.

Class 8 truck orders continue to be weak and have led to rapidly declining build schedules at Accuride’s major OEM customers. In addition, Navistar and Paccar notified the Company that they will no longer offer Gunite hub and drum assemblies as standard equipment on their vehicles beginning in the third and fourth quarters of 2012, respectively. Fleets will continue to have the option to specify Gunite products when ordering vehicles.

 

The company said, ““In spite of the near-term industry challenges, our plan to ‘Fix & Grow’ Accuride is on track,” said Accuride President and CEO Rick Dauch. “We are taking the actions necessary to reduce our cost structure in the face of challenging and rapidly changing industry conditions, without jeopardizing our operational turnaround and long-term strategic objectives. Our Aluminum Wheel and Gunite manufacturing equipment launches and the consolidation of manufacturing operations at Gunite and Imperial will be completed by year-end. Long-term industry fundamentals remain intact, pointing to a recovery over the next several years. We are confident that the actions we are taking will make Accuride a much stronger and more dependable company for our customers and shareholders.”

 

Accuride Corporation, together with its subsidiaries, engages in designing, manufacturing, marketing, and supplying commercial vehicle components in North America. The company offers heavy- and medium-duty steel and aluminum wheels, light truck steel wheels, and military wheels; and wheel-end components and assemblies, such as brake drums, disc wheel hubs, spoke wheels, disc brake rotors, and automatic slack adjusters. Accuride Corporation markets its products under Accuride, Gunite, Imperial, and Brillion brand names. It serves heavy- and medium-duty truck, and commercial trailer original equipment manufacturers (OEM); and aftermarket suppliers, including OEM dealer networks, wholesale distributors, and aftermarket buying groups. The company was founded in 1986 and is headquartered in Evansville, Indiana.

 

Disclaimer: We have no position in any stock mentioned here.

 

 

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.