DISTRESSED DAILY: Wheel Pros Cuts Costs as Demand Hits Margins

Specialty tire manufacturer Wheel Pros Inc. is experiencing a substantial decline in cash flow and profitability as it faces lower demand.

Headquartered in Greenwood Village, Colorado, Wheel Pros saw a more than 20% drop in wheel volumes in the second quarter of 2022 because inflation has reduced consumer discretionary spending, S&P Global Ratings analysts Gregory Fang and David Binns wrote in a note.

Wheel Pros now finds itself in a dilemma. After the company’s sales fell 13.9% year-over-year during the second quarter, the tire manufacturer reduced prices by 10% across two of its major truck wheel brands during the third ...