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it's just a matter of time now for ddcc. they have the translock patents, they have licensing deals in the works and they have gold shipments to their asian customers started. everything is falling into place.
ddcc is making very strong accomplishments in 2016. the translock is the biggest potential for the huge worldwide shipping industries. how many shipping containers are going around the world at any given time? think about that, and the ddcc translock now has technology that all shippers will want to use. they have the patents. the next things we should see are marketing and licensing deals.
beautiful piece of news from ddcc showing that they got the patent number from the patent office, and this is now all finished up. the other parts of the news on the specifics of the translock technology are very impressive. translock really is going to be an industry game changer.
the acquisition plan really has to be the best option for ddcc to provide their customers with a lot of gold and other minerals in the shortest time. i would love to see them fully develop the bateman property but that will certainly take longer. i'm all for getting at least one big acquisition of a production ready gold operation to satisfy the current gold customers and then going back to bring up bateman production at a later time.
translock makes the shipment of any aggregate material more cost effective and easier to handle. it's a step forward for so many different types of materials that have to be moved by truck or rail car or shipping lines across the ocean. since ddcc got the patent approved and has already entered talks with different companies for using translock, we should be seeing new contracts.
new gold property acquisitions are the quickest way for ddcc to increase its gold supply for their building customer demands. they already have a lot of agreements with existing mines south of the boarder so this gives them a head start on knowing which ones are the best and most ready to roll rather than needing work to get going. with the mentions that have been made in the ddcc news about new acquisitions, i expect we will see this happen soon.
we should be seeing an announcement from ddcc any time on the issue of the final patent number for the translock since the company paid the fee a about two weeks ago. this will send a message to the big shipping companies and container manufacturers that ddcc is the place to go for the next generation tech they need.
Accuride CEO Rick Dauch Joins Panel at CAR Management Briefing Seminars
• To share lessons learned during panel, “Restructuring the Supplier Network: From the Inside and Out”
EVANSVILLE, Ind.--(BUSINESS WIRE)-- Accuride Corporation (NYSE: ACW) – a leading supplier of components to the North American and European commercial vehicle industries – today announced that its President and CEO Rick Dauch will participate in the panel discussion, “Restructuring the Supplier Network: From the Inside and Out” during the Center for Automotive Research Management Briefing Seminars, 8:30 a.m. EDT, Thursday, August 4, 2016, in Traverse City, Mich. During the session, Dauch will share lessons learned leading effective supplier restructuring initiatives during his more than two decades in the global light-vehicle and commercial-vehicle industries.
Dauch will participate in the Thursday morning panel that will be led by Dave Andrea, Executive Vice President of Research for the Center for Automotive Research, and include co-panelists Matthew T. Stover, Equity Research Analyst with Susquehanna Financial Group, and Mark Wakefield, Managing Director of AlixPartners.
About Rick Dauch
Rick Dauch has served as President and Chief Executive Officer of Accuride Corporation since joining the Company in February 2011. He has led a transformational restructuring of the company’s production and processes that has resulted in world-class levels of operating performance and efficiency. Prior to joining Accuride, Dauch served as President and CEO of global fastening solutions supplier Acument Global Technologies. He joined Acument following a 13-year tenure with global automotive supplier American Axle and Manufacturing, Inc. (AAM) that included serving as AAM’s Executive Vice President of Worldwide Manufacturing. Dauch’s corporate career was preceded by service as an officer in the U.S. Army upon graduating with a bachelor’s degree in Engineering from the United States Military Academy at West Point. Dauch also earned dual Master of Science degrees in Management and Engineering from the Massachusetts Institute of Technology (MIT). He is a member of the board of directors of Spartan Motors, Inc., Koch Enterprises, Inc., and the Heavy Duty Manufacturers Association (HDMA). He also serves as a member of the HDMA Heavy Duty Business Forum and is a board member and past president of the Army Football Club.
About The Center for Automotive Research
The Center for Automotive Research is a non-profit organization based in Ann Arbor, Michigan. Its mission is to conduct research on significant issues related to the future direction of the global automotive industry, organize and conduct forums of value to the automotive community and foster industry relationships. For more information, visit the CAR website: www.cargroup.org.
About Accuride Corporation
With headquarters in Evansville, Ind., USA, Accuride Corporation is a leading supplier of components to the North American and European commercial vehicle industries. The company’s products include commercial vehicle and motorcycle wheels; wheel-end components and assemblies; and specialty cast-iron components for a range of agricultural, construction and mining, and oil and gas equipment applications. The company’s products are marketed under its brand names, which include Accuride®, Accuride Wheel End SolutionsTM, Gunite®, Gianetti RuoteTM and BrillionTM. Accuride’s common stock trades on the New York Stock Exchange under the ticker symbol ACW. For more information, visit the Company’s website at http://www.accuridecorp.com.
http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160803005263r1&sid=acqr7&distro=nx&lang=en
View source version on businesswire.com: http://www.businesswire.com/news/home/20160803005263/en/
Accuride Corporation?MEDIA RELATIONS CONTACT?Timothy G. Weir, APR, 812-962-5128?Director of Public Affairs, Communications & Marketing?tweir@accuridecorp.com?or?INVESTOR RELATIONS CONTACT?Todd Taylor, 812-962-5105?Vice President and Treasurer?ttaylor@accuridecorp.com
Source: Accuride Corporation
© Copyright Business Wire 2016
there is no doubt that the state of the world invites investment in gold and ddcc is in a good position to benefit from this situation.
the latest ddcc news has shown success with the gold supply shipments beginning this month. on top of that we have the translock patent as a done deal with the patent number about to be issued. 2016 is turning into the year for ddcc transforming from concept to reality.
ddcc's big gold supply contract is just starting to bring large revenues into the company. it did take longer than expected to get everything worked out but the news on june 28th that they have started shipping millions of dollars in gold to their south korean customers means that this company is now turning the corner to financial success. i agree that the rising gold prices being reported regularly are only increasing ddcc's net income.
Accuride Reports Solid Second Quarter 2016 Results
• Second Quarter 2016 Results: Net income of $2.5 million, or $0.05 per share Net sales of $164.1 million, down 11.5 percent from the second quarter of 2015 Adjusted EBITDA of $23.9 million, down 7.6 percent from the second quarter of 2015
• Lowering guidance range for revenue and narrowing guidance range for Adjusted EBITDA for the full year
EVANSVILLE, Ind.--(BUSINESS WIRE)-- Accuride Corporation (NYSE:ACW) – a leading supplier of components to the North American and European commercial vehicle industries – today reported financial results for the second quarter ended June 30, 2016.
“Accuride delivered another solid quarter, as our core Wheels and Gunite business units continued to perform at world class operating levels and generate strong profitability,” Accuride President and CEO Rick Dauch said. “During the second quarter, our top line was impacted by significantly lower demand at Brillion, lower Class 8 production and lower pricing related to raw material pass through mechanisms. Our strong operating performance and cost reduction initiatives enabled us to offset the revenue declines and expand EBITDA margins at Wheels and Gunite from 2015 levels.
“Looking at the second half of 2016, we expect to face headwinds from continued weak demand in Brillion’s end markets and lower North American Class 8 truck demand, which should be somewhat offset by healthy Class 5-7 and Trailer market segments. In addition, we expect to partially offset the impact of rising steel prices on margins by continuing to deliver strong operational performance across our business units.
“Due to these factors, we are lowering our full-year guidance for revenue to the range of $625 million to $650 million. We are narrowing our full-year guidance for Adjusted EBITDA to the range of $65 million to $75 million, as we continue to manage performance across all of our business units. We’ll continue to take pre-emptive actions to maintain margins and profitability in order to achieve break-even or better free cash flow and protect our liquidity during this period of lower demand," Dauch added.
Second Quarter 2016 Results
Second quarter 2016 net sales were $164.1 million, which was a decrease of $21.3 million, or 11.5 percent, compared to net sales of $185.4 million for the three months ended June 30, 2015. The decrease was driven by $6.3 million related to the continued softness in demand at our Brillion business unit, $12.0 million in pricing related to the pass-through of lower raw material costs and $13.8 million due to lower demand in North American wheels and brake drums. Partially offsetting those decreases were $10.8 million in net sales related to our majority investment in Gianetti Ruote.
Accuride’s operating income was $11.5 million, down $2.7 million, compared to operating income of $14.2 million in the second quarter of 2015. This was primarily due to the incremental margin loss on the lower product demand which was partially offset by lower corporate spending. The Company reported net income from continuing operations attributable to shareholders of $2.5 million, or $0.05 per share, compared to net income of $6.3 million, or $0.13 per share, in the second quarter of 2015. Second quarter Adjusted EBITDA was $23.9 million, or 14.6 percent of net sales, compared to $25.9 million, or 14.0 percent of net sales, in the same quarter of 2015.
Second Quarter Business Segment Results
Wheels
Wheels segment net sales were $104.4 million, down $9.9 million, or 8.7 percent, from the same period in 2015. The second quarter of 2016 included $10.8 million in net sales related to our majority investment in Gianetti Ruote that occurred in November 2015. Excluding the net sales from Gianetti Ruote, the Wheels segment net sales were down $20.7 million, or 18.2 percent, from the same period in 2015. The decrease is primarily related to the pass-through of lower material costs of $9.2 million, coupled with a decrease in production volume from our OEM customers and reduced demand from our aftermarket customers of $11.5 million. Wheels’ Adjusted EBITDA was $24.7 million which was a decrease of $1.4 million, or 5.3 percent, from the second quarter of 2015. Despite the decline in net sales, Adjusted EBITDA as a percentage of net sales improved to 23.7% in the second quarter of 2016.
Gunite
Gunite segment net sales of $43.5 million were down $3.5 million, or 7.4 percent, from the second quarter of 2015. This decrease is largely attributable to the pass-through of lower material costs of $1.3 million, coupled with lower OEM production and slightly less aftermarket demand of $2.2 million. Gunite’s Adjusted EBITDA was $8.3 million, which was a decrease of $0.4 million, or 4.9 percent from the second quarter of 2015. Despite the decline in net sales, Adjusted EBITDA as a percentage of net sales improved to 19.0% in the second quarter of 2016.
Brillion Iron Works
Brillion Iron Works segment net sales of $16.2 million were down $7.8 million, or 32.6 percent, from the second quarter of 2015. This was primarily due to lower demand in industrial manufacturing, agriculture, mining, and oil and gas markets of $6.3 million, as well as $1.5 million related to the pass-through of lower material costs during the period. Brillion’s Adjusted EBITDA was a negative $1.7 million, a decrease of $1.4 million, from the second quarter of 2015.
Liquidity and Debt
As of June 30, 2016, total debt was $315.5 million, consisting of $305.3 million of the outstanding 9.5% senior secured notes, net of discount and debt issuance costs, and $10.2 million in short term obligations related to the majority interest in Gianetti. As of June 30, 2016, Accuride had $27.8 million of cash plus $49.9 million in availability under its ABL Credit Facility for total liquidity of $77.7 million.
2016 Financial Guidance
Accuride expects 2016 revenue to be in the range of $625 million to $650 million, with Adjusted EBITDA in the range of $65 million to $75 million. Accuride also expects free cash flow for 2016 to be roughly breakeven. The Company is basing these expectations for 2016 guidance on the following projections for North American commercial vehicle production and other key assumptions for the year:
• North American Class 8 production levels in the range of 220,000 to 235,000 units
• North American Class 5-7 production levels in the range of 220,000 to 240,000 units
• North American Trailer production in the range of 270,000 to 290,000 units
• European heavy- and medium-duty truck builds in the range of 510,000 to 530,000 units
• Commercial vehicle aftermarket generally flat versus prior year
• Brillion business unit net sales down 25 percent to 30 percent versus prior year
• Full year consolidation of Gianetti Ruote
Earnings Conference Call Information
Accuride will host a conference call to discuss the financial and operational results of its Second Quarter Fiscal Year 2016 on Tuesday, July 26, 2016, beginning at 9:00 a.m. CDT. Analysts and investors may access the conference call by dialing (877) 543-8122 in the United States, or (615) 247-0091 internationally, and using participant code 48742818. A live webcast of the call will be available at the Accuride website Investors section: www.AccurideCorp.com/investors. A replay will be available from noon CDT on July 26, 2016 until 11:59 p.m. CDT, August 2, 2016, by calling (855) 859-2056 in the United States, or (404) 537-3406 internationally, using access code 48742818.
About Accuride Corporation
With headquarters in Evansville, Ind., USA, Accuride Corporation is a leading supplier of components to the North American and European commercial vehicle industries. The company’s products include commercial vehicle wheels; wheel-end components and assemblies; and specialty cast-iron components for a range of agricultural, construction and mining, and oil and gas equipment applications. The company’s products are marketed under its brand names, which include Accuride®, Accuride Wheel End Solutions™, Gunite®, Gianetti Ruote™ and Brillion™. Accuride’s common stock trades on the New York Stock Exchange under the ticker symbol ACW. For more information, visit the Company’s website at http://www.accuridecorp.com.
another great find showing the translock patent number is about to be issued. ddcc has cleared all the hurdles and won the race for the patent on this next generation transport system that every big shipper will want to use. thanks for info.
there have been two big developments for ddcc in just the last week. the announcement of the first major gold shipment on the long term contract they have in place and also the issuance of the patent number for the translcok system getting confirmed. plus the new technologies for better detection and also processing of gold that the company has mentioned will only speed and streamline their efforts.
very significant news for ddcc.
solid info from greendolphin on ddcc's gold and silver supply business side. the latest ddcc news about the large gold supply project they are delivering right now makes this info important. large revenues are now coming into the company and that's going to support and speed up all the other ddcc projects. it's a good week for us.
glad to see this extra coverage which provides a clear focus on what makes this company very special. the new gold processing tech that was mentioned in the last ddcc news is another feather in their cap and should make their overall gold supply business even more efficient and profitable.
good timing for ddcc to be getting their large gold supply contract into shipping mode now. with all the political instability around the world and other economic pressures, the demand for gold is surging and the prices will continue higher.
great news from ddcc today. the gold supply contract is being fulfilled, which means large revenues are now coming into ddcc and will continue every month as the original contract specified. this should also help ddcc complete its other commodity supply contracts and also the translock projects that are now in the works. this is significant.
ddcc is a high reward investment with the worldwide applications for the translock shipping system. this is one that is worth any amount of waiting time. when they start to announce contracts with the big shippers the payoff for investors should be great.
ever since the translock patent was approved by the u.s. patent office we have seen a lot more interest in ddcc. the additional patents filed for got even more investor attention. it's just a matter of time now until we start to see them signing sales or lease contracts which will make all the difference here.
ddcc is doing well on all the good news released lately. the coverage of the growing strength in the stock is good to see. makes sense with all the positive developments, especially the patents and new projects for the translock containers. the first translock contracts signed should take ddcc to higher trading levels.
increasing container traffic equals more opportunity for translock. ddcc just told us they are in talks with the big container makers and users and with the demand rising things should go more quickly.
glad to see you blockman. i see what you are saying and hope you get the full position you want in ddcc before the first translock contracts hit. we see the real potential here.
more people are finding out about ddcc and the translock. the first translock contract will make all the difference to this stock, especially if it is with one of the big international shippers. this is a little company that has a new technology that could take off in a big way. with the patent program ddcc has laid out they will be the place to go for every shipper that wants the advantages and cost savings of the interlocking type container system.
ddcc could go to $1 or more over the next 12 months as translock contracts are booked. those will be worth many millions and with lease contracts there will be regular reoccurring revenue. every successful company that got big has started out small but had something special to offer.
good reading and some nice photos of ddcc's translock containers in that new article. the best part is the emphasis on ddcc's new marketing of translock with the big boys in the transport industries. this company thinks big and acts big. that's the way to become big.
getting one's ducks in a row is a sign of strength, not weakness.
we received a strong announcement from ddcc today. they are taking translock to all the top companies in the shipping industry. it's clear that they were waiting to get the patent rights secured before they made any big marketing moves. they know how big a development translock is going to be for shippers all over the world. ddcc will be the only supplier of this technology and all the users are now getting that message. contracts will be next.
this article reinforces the need for shipping container modernization, a place where ddcc holds a winning hand.
ddcc's translock has the needed features in the commodity transport system arena. the world will take note.
another very positive indicator for ddcc's translock in the world shipping markets today. the tougher economy demands better efficiency and less waste of time. the translock system is just what the shipping industry needs now. it's very clear that the double crown designers knew what was needed and produced it, and also now have it patented. the next step is commercial sales which we should see starting soon.
this is a great time to be finding ddcc with the approved translock patent. this new type of commodity carrier offers advantages to shippers in a range of different industries and can be sent by land or sea. it is a true intermodal design that allows the units to interlock with each other for faster and more efficient operations that have shippers time and money. the translock is well explained in this video production you can watch: http://www.doublecrownresources.com/index.php/news-media/media . ;
ever since the patent was approved for ddcc's translock system we have been seeing increased trading volumes and moves up to higher price levels. investors are starting to figure out how big the translock can be with shipping commodity products in multiple industry sectors all over the world. it's a better container design than what is used by shippers today and will cut their costs. the next step is getting commercial orders signed and that is what the company is working on.
good to see this article today, better prospects remain in place.
right, that's what we heard about in the last news from ddcc (pasted below). allso expecting to see new contracts signed soon. the patent approval was the kick-start to get things moving again.
Double Crown Resources President Allen E. Lopez commented, "With theTranslock² patent approval now achieved, we look forward to reporting progress with the new industry-specific prototypes that are being developed at the request of our clients. We also expect to be announcing signed contracts and orders from these clients shortly. The demands for greater efficiency, cost and time savings, enhanced safety and also environmental protection in bulk commodity transport have never been more important. The Translock² system will deliver all of these benefits to every branch of intermodal shipping and Double Crown is making every effort to offer all possible options for the global macro logistics containerization super-highway."
the translock info is very well presented. now that the patent has been approved and new projects are being planned as we saw in the recent ddcc news, the next things we should be hearing about are new contracts with their customers. ddcc has come a long way and got the job done.
i note in the article you posted today the mention of a severe container capacity shortage in intermodal transport. we have seen this before in other articles. it's a major opportunity for ddcc's translock system, especially since translock can load four units onto a standard rail car.
another very well written piece on the major improvements translock can bring to the global shipping circles. i saw this one when it came out. these new features are getting posted to the ddcc facebook page as well as other places. here's the link to go back and see them all: https://www.facebook.com/doublecrownresources
i saw that up on the ddcc facebook page. good article showing recognition of ddcc and the translock as a new and precedent setting entry into the international shipping industry. the word is starting to get out.