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.
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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.
