Tower International Projects 2019 To Be Transition Year; Issues 2020 Outlook
Tower International, Inc. (TOWR) announced, for full year 2019, the company expects: revenue of $1.65 billion, reflecting primarily net new business of $175 million, offset partially by adverse program mix of $90 million; adjusted EBITDA of $175 million; and an adjusted EPS of $2.50 per share which is adversely impacted by the adoption of ASC 842 and a higher tax rate. During 2019, Tower expects to launch programs which will represent nearly $700 million of on-going revenue. These product launches combined with customer downtime associated with platform changeover will adversely impact results, particularly in the first half of the year, the company said.
“With significant program changeovers and the launch of approximately $700 million in annual run rate revenue, 2019 will be a transition year. By 2020, these major launches will be completed and we expect significant margin improvement and substantial free cash flow,” said CEO Jim Gouin.
The company’s full year 2020 outlook includes: revenue of $1.69 to $1.74 billion; and an adjusted EBITDA of $200 to $210 million.
For full year 2018, adjusted earnings per share was $3.50, increased 6 percent from $3.30 from a year ago. Revenue was $1.57 billion compared with $1.38 billion in 2017, representing a 14 percent increase.
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