Tower International, Inc. (NYSE: TOWR), a leading global manufacturer of engineered automotive structural metal components and assemblies, today announced second quarter 2016 results and updated its business outlook through 2017. (Unless otherwise noted, all information refers to Tower’s continuing operations in North America and Europe.)
- Revenue for the second quarter was $505 million, up from $450 million in the second quarter of 2015, primarily reflecting organic new-business growth inNorth America.
- Net loss from continuing and discontinued operations was $4.8 million or a loss of 23 cents per share, compared with net income of $18.6 million or 87 cents per share in the second quarter last year. As detailed below, this year’s second quarter included certain items that adversely impacted results by$22.2 million, mainly reflecting the non-cash impairment related to the accumulated foreign-currency translation adjustments in our discontinued Braziloperation. Excluding these items and comparable items in the second quarter of 2015, diluted adjusted earnings were 81 cents per share, compared with$1.10 a year ago. The decline mainly reflected the resumption this year of accrued U.S. income taxes.
- Adjusted EBITDA for the quarter was $50.3 million, compared with $51.5 million a year ago. The decline was more than explained by the planned and anticipated up-front costs associated with the major new business.
- The Company is re-affirming its outlook for full year earnings and free cash flow. The outlook for full year revenue is down slightly for vehicle and Company-specific reasons; to date, there has been no evidence experienced by the Company of a meaningful industry production downturn in North America or adverse fall-out in Europe from Brexit.
- Tower believes it is entering a period of very favorable earnings comparisons and strong free cash flow. For example:
- Second half 2016 adjusted EBITDA is projected to be up more than 20% from second half 2015;
- Free cash flow in the second half of 2016 through 2017 is projected at $130 million; and
- Depending on the pace of the Company’s previously announced stock buyback program, diluted adjusted earnings per share could exceed $4.00 in 2017.
“Following 24 consecutive quarters of meeting or beating the earnings consensus and a series of important and successful new-business launches, Tower is poised to deliver record results,” concluded President and CEO Mark Malcolm.
Tower to Host Conference Call Today at 10 a.m. EDT
Tower will discuss its second quarter 2016 results and other related matters in a conference call at 10 a.m. EDT today. Participants may listen to the audio portion of the conference call either through a live audio webcast on the Company’s website or by telephone. The slide presentation and webcast can be accessed via the investor relations portion of Tower’s website www.towerinternational.com. To dial into the conference call, domestic callers should dial (866) 393-4576, international callers should dial (706) 679-1462. An audio recording of the call will be available approximately two hours after the completion of the call. To access this recording, please dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and reference Conference I.D. #52641232. A webcast replay will also be available and may be accessed via Tower’s website.
