NOVI, MI — Tower Automotive has announced its financial results for the first quarter of 2004 and updated 2004 earnings guidance.
Tower Automotive announced first quarter revenues of $781 million, compared to $733 million in the first quarter of 2003. The company reported net income of $12 million, or $0.21 per diluted share, for the quarter versus net income for the first quarter of 2003 of $11.6 million, or $0.21 per diluted share. Earnings in the first quarter of 2004 were increased approximately $13.4 million, or $0.23 per share, by certain items including divestiture gains of $9.7 million, after tax, and net restructuring income of $3.7 million, after tax. Compared to the first quarter of 2003, first quarter 2004 earnings bear the launch costs for several significant new business awards, which will be of benefit in the future, the company said.
“Our first quarter results demonstrate our dedication to launching our new business awards successfully, while driving fundamental operational improvements across the company,” said Kathleen Ligocki, president and CEO of Tower Automotive. “We are pleased we were able to exceed our earnings goals in the face of challenging market conditions.”
Tower Automotive also announced that it is pursuing a refinancing plan with financial institutions that, if consummated, would improve the company’s financial flexibility by extending debt maturities and increasing available liquidity. The refinancing plan would include a new senior secured credit facility as well as a capital markets transaction which, when taken together, would provide proceeds to repay the company’s existing credit facilities; refinance the company’s 5 percent Convertible Subordinated Notes due August 1, 2004; and build additional liquidity for the company. The company expects the refinancing to be completed prior to the end of the second quarter. There are no assurances that the refinancing plan will be consummated.
For more information about Tower, go to: www.towerautomotive.com.
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