CHICAGO -- Auto parts maker Tower Automotive Inc. on Tuesday posted a quarterly net loss and cut its full-year forecast, citing higher expenses and automakers' lower vehicle output.
The maker of auto body structures and frames said debt issuance and restructuring costs reduced earnings in the latest quarter.
Tower, which is in a turnaround mode under new management and is preparing several new vehicle platforms, said it faces higher-than-expected launch costs but is meeting timing and quality goals.
Tower reported a second-quarter net loss of $2.7 million, or 5 cents a share, compared with net income of $2.6 million, or 5 cents a share, a year earlier.
Per-share results in the latest quarter were reduced by one-time items totaling 8 cents.
Analysts on average had expected a profit of 3 cents a share, with estimates ranging from unchanged to a profit of 5 cents a share, according to Reuters Estimates.
The Novi, Mich., company said second-quarter revenue rose 5 percent to $783 million from the year before.
It also said it completed a refinancing plan during the quarter that included $580 million in new senior secured credit facilities and $125 million in convertible notes.
For the full year, it forecast earnings ranging from break-even to 8 cents a share, excluding one-time charges, down from its previous forecast for earnings of 25 cents to 30 cents a share. It lowered its full-year revenue outlook by $50 million to $3.15 billion.
Tower forecast a loss in the third quarter ranging from 18 cents to 22 cents a share on revenue of $725 million to $735 million.
Tower is 16th on the Automotive News ranking of top suppliers to North American automakers in 2003 with $2 billion in sales.