NOVI, MI — Tower Automotive announced yesterday that it expects earnings to be down as a result of lower vehicle production volumes in North America, continued escalation of steel costs and, to a lesser extent, higher launch costs on new business.
The company stated that it expects to report a third quarter 2004 net loss of between $22.5 million and $25 million, or 39 cents to 43 cents per diluted share. This compares to previous guidance for the third quarter of a net loss of between $10.4 million and $12.8 million, or 18 cents to 22 cents per diluted share. These net loss and diluted loss per share estimates exclude restructuring charges and certain non-recurring, non-cash charges. Revenues have softened for the quarter to a range of $710 million to $720 million versus previous guidance of between $725 million and $735 million. Liquidity as of September 30, is expected to be in excess of $115 million.
“The combination of lower production volumes on our key platforms in North America, along with continued steel cost increases, added further challenges to the third quarter,” said Kathleen Ligocki, president and CEO of Tower Automotive. “Additionally, even though our costs on one major launch are running slightly above plan, it is important to point out that we have met all of our timing and quality commitments to our customers.”
Tower Automotive will give guidance for the fourth quarter 2004 in connection with the third quarter 2004 earnings release.
For more information about Tower Automotive, go to: www.towerautomotive.com.
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