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Tower Automotive posts $13.75 million first-quarter operating income
By Caroline Salls
Pittsburgh, Aug. 4 - Tower Automotive Inc. reported $13.75 million in operating income for the first quarter on $769.72 million in revenues, according to a 10-Q filing with the Securities and Exchange Commission.
The figures compare to a $10.31 million operating loss for the same period of 2005 on revenues of $915.88 million.
According to the filing, the operating results include $2.52 million in net restructuring and asset impairment charges for the quarter ended March 31, down from $38.9 million in the same quarter of 2005.
Interest expense was also cut by more than half, with $20.81 million in interest expense for the 2006 quarter, compared with $44.12 million in 2005.
In addition, Chapter 11 and related organization items for the first quarter of 2006 were $11.61 million, down from $41.62 million the previous year.
According to the filing, the decrease in sales can be attributed to lower volume, the impact of two frame programs ending and unfavorable product mix decreased revenue by $147.2 million during the 2006 period compared to the 2005 period.
In addition, unfavorable foreign exchange decreased revenue by $0.7 million during the 2006 period compared to the 2005 period.
Tower said these impacts were partially offset by an increase in steel price recoveries from some customers of $1.4 million during the 2006 period compared to the 2005 period.
The net loss for the first quarter of 2006 was $10.34 million, down significantly from a $98.8 million net loss the year before.
Cash and cash equivalents on March 31 were $124.21 million, compared with $65.79 million on Dec. 31, 2005.
The Novi, Mich.-based auto parts maker filed for bankruptcy on Feb. 1, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-10578.
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