CHICAGO -- Tower Automotive Inc., which makes auto body structures and frames, on Thursday said its quarterly net loss narrowed from a year earlier when it took restructuring charges.
Tower had warned earlier in October that its loss, excluding restructuring and other charges, would be twice as wide as prior forecasts because of rising steel costs and North American light vehicle production cuts.
"We see this set of results (and quarter-ending liquidity) as a positive for the stock, although the fourth quarter guidance is a modest disappointment," J.P. Morgan analyst Himanshu Patel said in a research note.
The net loss amounted to $20.2 million, or 35 cents per share, for the third quarter, compared with a net loss of $105.9 million, or $1.87 per share, in the year earlier period, when it took restructuring charges of $87.3 million.
Excluding one-time items such as the benefit of income related to senior convertible debt, the company matched the Wall Street average of 41 cents per share, as compiled by Reuters Estimates.
Revenue rose to $722.3 million in the quarter from $623 million a year earlier for Novi, Mich.-based Tower. The company also said it had $145 million of cash, or equivalents on hand at the end of the quarter, compared with its statement earlier in October that it expected liquidity of at least $115 million at the end of the quarter.
Tower said it expects fourth-quarter results to range from a loss of 10 cents per share to nil earnings excluding restructuring charges on revenue of $830 million to $855 million. It expects a per-share loss for 2004 of from 40 cents to 50 cents.
Analysts on average expect Tower to report nil earnings in the fourth quarter and a loss of 39 cents per share for the year, according to Reuters Estimates.