Tower Automotive posts $3.26 million second quarter operating loss

By Caroline Salls

Pittsburgh, Sept. 15 - Tower Automotive, Inc. reported a $3.26 million operating loss for the quarter ended June 30 on revenues of $766.91 million, according to a 10-Q filing with the Securities and Exchange Commission.

For the same period of 2005, the company posted $678,000 in net income on revenues of $923.01 million.

According to the filing, the decrease in sales was due primarily to lower volume, the impact of two frame programs ending and an unfavorable product mix.

In addition, Tower said steel price recoveries from some customers decreased by $4.2 million during the 2006 period compared to the 2005 period.

These impacts were partially offset by favorable foreign exchange, which increased revenue by $8.2 million during the 2006 period compared to the 2005 period.

The net loss for the second quarter of 2006 was $75.39 million, improved from a $133.65 million second quarter 2005 net loss.

Cash and cash equivalents on June 30 were $120.12 million, compared with $51.58 million on June 30, 2005.

For the first six months of this year, the company recorded a $10.49 million operating income on revenues of $1.537 billion, compared with a $9.63 million operating loss for the first half of 2005 on revenues of $1.839 billion.

The net loss for the first half of 2005 was $85.72 million, up from a $232.45 million net loss the year before.

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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