Automotive parts maker Tower Automotive on Tuesday posted a quarterly loss, hurt by asset impairment and restructuring charges, Reuters reported.
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The news agency said that Tower had a second-quarter loss of $US2 million, or 4 cents a share, compared with a profit of $23 million, or 37 cents a share, a year ago, while revenue fell to $743 million from $751 million.
Analysts’ earnings consensus estimate was for a profit of 14 cents a share, in a range of 6 cents to 18 cents, according to Reuters Research, a unit of Reuters Group Plc.
According to Reuters, Grand Rapids, Michigan-based Tower, which makes vehicle body structures among other components, said it recorded a $23.1 million charge in the second quarter for relocating its Ford Ranger frame production line to Ohio from Milwaukee in a move that is expected to save $10 million a year in labour costs.
Reuters noted that Tower said it had completed a $258 million senior note offering and amended its senior credit facility during the quarter, which reduced borrowing capacity but provided less stringent financial covenants to improve liquidity.
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By GlobalData
