Tower International, Inc. (NYSE: TOWR), a leading integrated global manufacturer of engineered automotive structural metal components and assemblies, today announced third quarter 2015 results, updated its outlook for the full year, and discussed related business developments.
- Revenue for the third quarter was $475 million. At constant exchange rates, revenue was $516 million, up 4% from $498 million in the third quarter 2014. Higher sales volumes in North America and Europe were partially offset by lower customer sales in Brazil and China.
- Adjusted EBITDA for the quarter was $43.8 million, compared with $48.6 million a year ago. The year-over-year decline reflected unfavorable net cost performance, which was in line with guidance and reflected unfavorable calendarization timing versus a year ago.
- Net income was $16.3 million, compared with $11.2 million last year. As detailed below, this year’s third quarter included certain items that favorably affected results by $1.8 million. Excluding these items and comparable items in the third quarter of 2014, diluted adjusted earnings were $0.67 per share, compared with $0.70 a year ago.
- Adjusted free cash flow for the third quarter was $15 million.
- Net debt (excluding cash attributable to discontinued operations) was $358 million at September 30, an improvement of $45 million from a year ago.
- Earnings guidance for full year 2015 is unchanged, at $190 million adjusted EBITDA and $3.15 adjusted EPS. Projected revenue is reduced by $20 million, to $1,950 million.
- The Company expects its two China JV sales to close in the Fourth Quarter, resulting in anticipated cash sale proceeds of about $50 million, plus elimination of about $47 million of minority interests in Tower’s net assets; together, this represents more than $4.50 per TOWR share in enterprise value expected to be received in the Fourth Quarter.
- Tower’s capital deployment for full year 2015 now includes accretive organic growth through major new business awards, an accretive acquisition in high-growth Mexico, the initiation of a quarterly dividend to begin returning capital to shareholders, and anticipated further de-leveraging of more than $40 million.
“At this point in our company’s evolution, we expect to have excellent future opportunities and the continuing resolve to take disciplined yet decisive actions intended to further improve the business and achieve fair and increasing value for our owners,” said President and CEO Mark Malcolm.
Tower to Host Conference Call Today at 11 a.m. EDT
Tower will discuss its third quarter 2015 results, the outlook for full year 2015, and other related matters in a conference call at 11 a.m. EDT today. Participants may listen to the audio portion of the conference call either through a live audio webcast on the Company’s website or by telephone. The slide presentation and webcast can be accessed via the investor relations portion of Tower’s website www.towerinternational.com.
To dial into the conference call, domestic callers should dial (866) 393-4576, international callers should dial (706) 679-1462. An audio recording of the call will be available approximately two hours after the completion of the call. To access this recording, please dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and reference Conference I.D. #62619540. A webcast replay will also be available and may be accessed via Tower’s website.
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