Auto parts maker Tower Automotive has posted a quarterly net loss and cut its full-year forecast, citing higher expenses and automakers’ lower vehicle output.
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According to Reuters, the maker of auto body structures and frames said debt issuance and restructuring costs reduced earnings in the latest quarter.
Tower, which is in a turnaround mode under new management and is preparing several new vehicle platforms, also reportedly said it faces higher-than-expected launch costs but is meeting timing and quality goals.
Tower reported a second-quarter net loss of $US2.7 million, or 5 cents a share, compared with net income of $2.6 million, or 5 cents a share, a year earlier, Reuters added.
Per-share results in the latest quarter were reduced by one-time items totalling 8 cents, the report said.
Analysts on average had expected a profit of 3 cents a share, with estimates ranging from unchanged to a profit of 5 cents a share, according to Reuters Estimates.
The company reportedly said second-quarter revenue rose 5% to $783 million from the year before, adding that it completed a refinancing plan during the quarter that included $580 million in new senior secured credit facilities and $125 million in convertible notes.
For the full year, it forecast earnings ranging from break-even to 8 cents a share, excluding one-time charges, down from its previous forecast for earnings of 25 cents to 30 cents a share – and it lowered its full-year revenue outlook by $50 million to $3.15 billion.
Tower forecast a loss in the third quarter ranging from 18 cents to 22 cents a share on revenue of $725 million to $735 million, Reuters said.
