Accuride hits all-time low as it warns on outlook
NEW YORK -- Accuride's stock plunged to an all-time low on Wednesday as the company said it would not do as well as it had thought this year.
THE SPARK: Accuride, which makes parts for commercial vehicles, previously predicted a full-year loss of 5 cents to 12 cents per share. That included a loss of 6 cents per share related to the closing of its Elkhart, Ind. plant. Revenue is expected between $1 billion and $1.03 billion.
The company did not release a new prediction for net income, but analysts polled by FactSet were already forecasting a loss of 30 cents per share on revenue of $967.8 million.
The Evansville, Ind. company says its performance has been hurt by soft Class 8 truck orders. It is also being dragged down by Navistar and Paccar's decision to no longer offer its Gunite hub and drum assemblies as standard equipment on their vehicles.
Accuride said it is dealing with the difficult conditions through various cost-cutting efforts, including reducing its workforce by 14 percent.
SHARE ACTION: Shares of Accuride Corp. tumbled $1.23, or 27 percent, to $3.33 in afternoon trading. The stock dropped to $3.26 earlier in the session, its lowest point since going public in March 2010. For the year to date, the shares are down 38 percent.