Tower International, Inc., a leading global manufacturer of engineered automotive structural metal components and assemblies, today announced first quarter 2018 results and affirmed its earnings and free cash flow outlook for 2018.
- Revenue for the first quarter was $564 million compared with $498 million in the first quarter of 2017 representing a 13 percent increase.
- Net income was $17.3 million or $0.83 per share essentially equal to the first quarter last year. As detailed below, this year’s first quarter included certain items that, in aggregate, increased results by $27 thousand. Excluding these items and comparable items in the first quarter of 2017, adjusted earnings per share amounted to $0.82, an increase of 8 percent from the $0.76 reported a year ago.
- Adjusted EBITDA for the quarter was $53.1 million slightly ahead of the Company’s outlook and up 16 percent from $45.7 million a year ago.
- For the quarter, net cash used by continuing operating activities was $16 million. Cash disbursed for purchases of equipment totaled $29 million resulting in Free Cash Flow of negative $45 million. This compares with negative Free Cash Flow of $72 million in the first quarter 2017.
- Full year 2018 outlook includes:
- Revenue of $2.15 billion, reflecting primarily net new business of $125 million and favorable foreign exchange;
- Adjusted EBITDA of $230 million;
- Diluted Adjusted EPS of $4.10 per share – up 9 percent from 2017; and
- Free Cash Flow of $50 million, with strong free cash flow in the second half of the year more than offsetting the expected cash outflow in the first half of the year.
- The Company’s outlook for second quarter 2018 includes revenue of $560 million, Adjusted EBITDA of $58 million and Diluted Adjusted Earnings Per Share of $1.08.
“Tower delivered solid financial results in the first quarter as Adjusted EBITDA and Adjusted EPS were slightly ahead of our previous outlook,” said CEO Jim Gouin. “Revenue for the quarter increased 13 percent as Tower continues to benefit from the secular trends of outsourcing and a continued production mix shift from cars to trucks and SUVs. This mix shift helped Tower’s North American revenue to grow by 16 percent while the industry production declined by 3 percent. These trends, in combination with our solid backlog of net new business, gives us further confidence that we will continue to grow our revenue faster than the industry in total.”
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