USA: Tower Automotive lowers expectations - report
Automotive parts supplier Tower Automotive on Wednesday lowered its profit and revenue forecasts for the third quarter, citing lower sales volumes due to labour disruptions in South Korea, Reuters reported.
According to the report, the Grand Rapids, Michigan-based parts maker also said it would record $US122.7 million in non-cash asset impairment charges and $1.9 million in cash restructuring charges in the third quarter as it stops making frames for Ford's Explorer sport utility vehicle - the charges will have an after-tax impact of $1.45 a share.
Reuters said Tower now expects to post a third-quarter loss of about $1.78 a share. After having previously forecast a loss of between 16 cents and 24 cents a share. It forecast third-quarter revenue of about $620 million, down from previous guidance of between $640 million and $650 million, the report added.
According to Reuters, the company also expects third-quarter expenses of $4.4 million pretax, or 5 cents a share after tax, for executive retirement and recruitment and $3.3 million pretax, or 4 cents a share after tax, for an equipment failure that temporarily affected production.