Accuride (ACUZW) 8-K Accuride Corporation Reports Third Quarter 2011 Results

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Third Quarter 2011
Earnings Call

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Statements contained in this news release that are not purely historical are forward-
looking statements within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
including statements regarding Accuride’s expectations, hopes, beliefs and
intentions with respect to future results.  Such statements are subject to the impact
on Accuride’s business and prospects generally of, among other factors, market
demand in the commercial vehicle industry, general economic, business and
financing conditions, labor relations, governmental action, competitor pricing activity,
expense volatility and other risks detailed from time to time in Accuride’s Securities
and Exchange Commission filings, including those described in Item 1A of
Accuride’s Annual Report on Form 10-K for the fiscal year ended December 31,
2010. Any forward-looking statement reflects only Accuride’s belief at the time the
statement is made. Although Accuride believes that the expectations reflected in
these forward-looking statements are reasonable, it cannot guarantee its future
results, levels of activity, performance or achievements.  Except as required by law,
Accuride undertakes no obligation to update any forward-looking statements to
reflect events or developments after the date of this news release.

Forward Looking Statements

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Third Quarter 2011 Earnings

ØOpening Comments

•CEO Update

•Industry Highlights

•Plan Execution

ØFinancial Information

•Second Quarter Results

•2011 Outlook

ØQ&A

ØClosing Comments

Rick Dauch

President & CEO

Greg Risch

Vice President &
Interim-CFO

Rick Dauch

Greg Risch

Rick Dauch

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3rd Quarter Highlights

•Strong customer volumes: Class 8, Trailer, Improving 5-7

•Aluminum Wheel Capacity qualified and on-line at Erie, Camden, AdM

•Gunite:

•OE pricing negotiations are 95% complete

•Daily production consistently improving

•Imperial and Brillion businesses generating positive EBITDA

•LEAN Mfg. principles being implemented at Wheels plants

•Fabco sold (cash proceeds of $30.7 million)

•Aluminum capacity at Erie launched 60-days behind schedule

•Gunite operational challenges continue:

•Quality Issue

•Customer Demand > Current Operational Capability

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Economic Indicators

Source: FTR Associates

•GDP trend growth is forecasted to
average 2 - 2.5% over the next decade

•The economy is expected to be more
manufacturing driven which will insulate
freight volumes

•Our recent discussions with
customers confirm the continued
recovery of the NA commercial truck
and trailer market

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Trucking Indicators

• Cass Freight Index Improving

• September Expenditures rose 15% YOY

• September Shipments rose 7.5% YOY

• Pulse of Commerce Flat Lined

• Diesel fuel consumption declined .2% YOY in
September

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Build Levels

•Class 8 production forecasts
indicate continued upward
momentum

•Recovery in the medium-duty
segment of the market is 18
months behind Class 8

•Trailer builds continue to increase

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Strategic Objectives

Ø#1-2 globally in wheel-end systems

ØROIC > 20% through a cycle

Ø>80% of products from CORE products

ØBalanced geographical revenues:

•40% North America

•30% Asia

•20% Europe

•10% South America

Ø>95% retention of personnel

ØMaximize ACW share price

Share

Price

Grow Globally

Create a Competitive

Cost Structure &

LEAN Operating Culture

Divest Non-Core Assets

Fix Core Business & Operations

Customer Centric, Technology Leadership

Ethical People, Selfless Leaders, Team Oriented

Accuride Vision:Accuride will be the premier supplier of wheel-end system
solutions to the global commercial vehicle industry

Our
Focus

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Top Five Priorities

1.Strengthen Organization

2.Fix Gunite Business

3.Strengthen Steel Wheel Business

4.Grow Aluminum Wheel Business

5.Pursue Strategic Opportunities

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A New Senior Leadership Team

Rick Dauch

President & CEO

Greg Risch

VP, Interim CFO

Mary Blair

SVP, Supply Chain

Jim Maniatis

SVP, Human Resources

Chuck Byrnes

SVP, Sales & Marketing

Ken Sparks

SVP, Gunite & Brillion

Steve Martin

SVP, Chief Counsel

Scott Hazlett

SVP, Wheels

Dave Adams

SVP, CTO

Paul Clark

VP & General Manager, Imperial

*

*

* New position

New Hire

Same

Reassigned

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Project Timeline

Q3

Q4

Q1

Q2

Q3

Q4

2011

2012

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ØWe continue to execute on a series of strategic initiatives to focus on our core operations

ØWe are delaying International expansion activities until we fix our existing businesses

Acquired

Forgitron

Divested

Brillion Farm
Equipment

Additional

Actions

Pursue Strategic Opportunities

ØPortland, TN plant #1 consolidation 90% complete

Ø9presses relocated to Decatur, TX from TN and WA

ØTX operations grow from $35m/yr to >$100M/yr in 2012

ØDriving Imperial Group to >10% EBITDA in 2012

ØTransferring heavy duty wheel capacity from
our London, ONT facility to our Monterrey,
MX facility by 1Q12

ØNegotiating with CAW in London

Divested

Bostrom

Seating

Divested

Fabco

Grow

Fix

Fix

Fix

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Summary Income Statement

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Segment Revenue

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Segment EBITDA

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Sales & Adjusted EBITDA

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Trade Working Capital

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Customer Receivables - Net

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Inventories - Net

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Accounts Payable

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Net Income to EBITDA Reconciliation

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Free Cash Flow

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Net Debt & Liquidity

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Summary Income Statement

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Full Year Guidance

NetSales(1)$950.0to$975.0

AdjustedEBITDA$85.0to$90.0

EPS-Diluted(2)$(0.40)to$(0.30)

Depreciation&Amortization$49.0

CapitalExpenditures$63.0

CashInterestExpense$31.0

ExcessPensionContributions$15.0

TradeWorkingCapitalUseofCash$25.0

FreeCashFlow($55.0)to($50.0)

(1) Includes $24.3 million of sales from Discontinued Operations

(2) Includes $(0.33) in Q3 and $(0.02) in Q4 related to the Fabco sale and other non-cash charges

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•Focus on fixing our “core” assets:

•Accuride Wheels, Gunite

•Operational excellence - manufacturing & supply chain

•Make strategic investments:

•Organizational skill set improvements

•CAPEX - process capability, capacity footprint

•Research & Development - future products

•Opportunistic acquisitions

•100% commitment to:

•Fix what is not working today

•Divest non-core assets

•Expand globally to support our customers’ needs

•Southern US and Mexico

•Asia

•South America

•Europe

Summary

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