The global heavy-duty truck manufacturing market is concentrated in three primary regions: North America, Asia-Pacific and Europe. The global heavy-duty truck market is localized in nature due to the following factors: the prohibitive costs of shipping components from one region to another, the high degree of customization of heavy-duty trucks to meet the region-specific demands of end users, the localized nature of regulation of the truck and truck components industries and the ability to meet just-in-time delivery requirements.

According to ACT, North American heavy-duty truck production is expected to increase significantly from 2003 to 2008.

The North American heavy-duty truck market continued to rebound in 2004. According to ACT, North American heavy-duty truck production is expected to increase from 176,774 units in 2003 to 350,914 units in 2008, at a compound annual growth rate of 14.7%. Evidence of the initiation of this trend can be seen in North American heavy-duty truck orders in 2004. Monthly truck order rates began increasing significantly in December 2003 and continued at a strong pace through November 2004. North American year-to-date heavy-duty net truck orders increased 98.0% from November 2003 to November 2004. In spite of the increased production in 2003, the backlog for heavy-duty trucks has continued to increase and stood at 171,900 at the end of November 2004, up from 54,453 at the end of November 2003.

According to ACT, heavy-duty truck unit production is expected to continue increasing in 2005 and 2006, with projected unit production of 295,358 units and 314,161 units, respectively. It is believed that this projected increase is due to several factors, including improvement in the general economy in North America, which is expected to lead to growth in the industrial sector, corresponding growth in the movement of goods, which is expected to lead to demand for new trucks, and the growing need to replace aging truck fleets.

The Company is the largest North American manufacturer and supplier of wheels for heavy- and medium-duty trucks and commercial trailers. The Company offers the broadest product line in the North American heavy/medium wheel industry and are the only North American manufacturer and supplier of both steel and forged aluminum heavy/medium wheels. The Company also produces wheels for buses, commercial light trucks, pick-up trucks, sport utility vehicles and vans. The Company markets its wheels under the Company’s brand name.

The Company is the leading North American supplier of wheel-end components and assemblies to the heavy- and medium-duty truck markets and related aftermarket. The Company markets its wheel-end components and assemblies under the Gunite brand. The Company produces four basic wheel-end assemblies: disc wheel hub/brake drum, spoke wheel/brake drum, spoke wheel/brake rotor and disc wheel hub/brake rotor. The Company also manufactures a full line of wheel-end components for the heavy- and medium-duty truck markets, such as brake drums, disc wheel hubs, spoke wheels, rotors and automatic slack adjusters. The majority of these components are critical to the safe operation of vehicles.

Gross profit increased $26.0 million, or 55.0%, to $73.3 million for the nine months ended September 30, 2004 from $47.3 million for the nine months ended September 30, 2003.

Operating expenses increased $0.8 million, or 4.5% to $18.5 million for the nine months ended September 30, 2004 from $17.7 million for the nine months ended September 30, 2003.

Other expense decreased $12.0 million to $28.3 million for the nine months ended September 30, 2004 from $40.3 million for the nine months ended September 30, 2003.