The Board of Directors of Tower International, Inc. (NYSE: TOWR), a leading global manufacturer of engineered automotive structural metal components and assemblies, today authorized management to repurchase up to $100 million of the Company’s issued and outstanding common stock from time to time in the open market. The time period for the buyback is open-ended.
“In view of the Company’s previously disclosed strong earnings and cash-flow outlook, in combination with a decline in our stock price to a point significantly below our view of intrinsic value, we believe stock repurchase represents a prudent and appropriate way to opportunistically deploy capital in a highly accretive and low-risk manner,” said President and CEO Mark Malcolm. “Using present projections, the Company expects to generate more than enough cash through 2017 from operational free cash flow and the planned sales in Brazil and China to fund the repurchase authorization. The open-ended timing provides prudent flexibility to respond to changing business conditions or outlook, and to consider potential profitable growth opportunities.”
Tower plans to release second quarter results and update its outlook in late July. The Company presently anticipates that revenue may be slightly lower than prior guidance for the second quarter and full year. Earnings are presently expected to exceed second quarter guidance based on favorable calendarization and other factors; full year earnings and cash flow are presently expected to be consistent with prior guidance.
