Horizon Global Corp., a Troy, Michigan-based manufacturer of branded towing and trailering equipment, reported its fourth-quarter and full-year financial results for 2018.
The company reported full-year net sales of $850 million, down 4.8 percent from 2017, and an operating loss of $170.4 million.
“This past year, we took considerable steps to improve operational performance, reset the business in the U.S., and establish a foundation for top- and bottom-line growth in 2019 and beyond,” said Carl Bizon, president and CEO of Horizon Global. “As Interim CEO and then permanent CEO since October, we made impactful changes to our leadership team, including new leaders in Europe-Africa, and, most recently, the addition of Barry Steele as our new permanent CFO. We completed the action plan for the Americas and are now delivering efficiently from our primary U.S. distribution center in Kansas City, with past-due orders in the Americas decreased to less than $6 million at the end of 2018 from $8.5 million at the end of the third quarter and a seasonal peak of $26.0 million.
“In Europe-Africa, new leadership is making meaningful progress on a series of business-improvement initiatives intended to significantly impact operations for improved long-term performance in the region. These business-improvement initiatives will take time and attention to complete, but, in the end, we believe they will optimize operations, improve product quality and reduce costs. A major focus remains on supply chain and logistics to improve the overall efficiency of our operations. We remain optimistic about our team’s ability to drive positive momentum in the segment over time.”
Bizon continued: “Our Asia-Pacific segment continued to perform well in 2018, and, in the fourth quarter, this segment was awarded multiple meaningful contracts, which represent annualized revenue of approximately $10.4 million. The momentum in this region continues, and we expect another solid year of performance in 2019. With the continued momentum in Asia-Pacific, a return to growth in the Americas, progress on the turnaround in Europe-Africa, and the recently completed financing to support our business plan, we look forward to delivering value to our shareholders.”
For Horizon Americas, full-year net sales decreased 19.7 percent. The company attributed the decrease to higher-volume shipments in 2017 related to a year-end sales promotion that wasn’t repeated in 2018, higher customer-sales allowances, higher retail penalties and the 2017 divestiture of the Broom and Brush business.
“We are optimistic regarding our outlook for the year, although we are experiencing a slow start to the prime spring and summer selling season in the U.S. due to cold and wet weather conditions impacting numerous industries,” Bizon said. “With our new financing in place, providing the liquidity and capital flexibility we need to execute our business plan, we have a stronger foundation from which to operate in the coming year. Our senior leadership team is now fully transitioned with the addition of a permanent CFO, and we are operating as one team with one goal to complete the operational turnaround at Horizon Global. We remain focused on providing the best products and service to our customers and end-users, ultimately translating to enhanced value for our shareholders.”