Tower Automotive reports $47.09 million third-quarter operating loss

By Caroline Salls

Pittsburgh, Feb. 27 - Tower Automotive, Inc. reported a $47.09 million operating loss for the quarter ended Sept. 30 on $615.67 million in revenues, according to a 10-Q filing with the Securities and Exchange Commission.

The figures compare to a $49.83 million operating loss for the third quarter of 2005 on $712.66 million in revenues.

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

In addition, the company said steel price recoveries decreased.

The net loss for the third quarter of 2006 was $65.17 million, down from a $76.56 million net loss for the same period of 2005.

For the nine months ended Sept. 30, Tower showed a $36.6 million operating loss on $2.152 billion in revenues, compared with a $59.46 million operating loss for the first nine months of 2005 on $2.551 billion in revenues.

The net loss for the first nine months of 2006 was $150.89 million, down from a $309 million net loss for the first nine months of 2005.

Cash and cash equivalents on Sept. 30 were $103.44 million, compared with $45.52 million on Sept. 30, 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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