Tower International Raises 2016 Earnings Outlook - Quick Facts

(RTTNews) - While reporting its first-quarter financial results today, Tower International Inc. (TOWR) raised its earnings outlook for full year 2016 and provided a preliminary outlook for 2017.

For fiscal 2016, the company raised its outlook for earnings from continuing operations to $3.20 per share from the previous $3.00 per share. On average, analysts polled by Thomson Reuters expected the company to earn $3.03 per share for the year.

For fiscal 2017, the company provided directional outlook for continuing operations, including a 10 percent increase from projected 2016 in adjusted EBITDA to $225 million, a 16 percent increase in adjusted earnings per share to $3.70, adjusted EBITDA margin increasing to 11 percent, and free cash flow of $70 million. The Street expects earnings of $3.34 per share for the year.

Further, Tower International said it has completed its evaluation of Tower Europe and has decided to retain the business. There is no further intention to sell this business.

The company also said its remaining businesses in Brazil and China are no longer considered to be core and were declared in April as held for sale. In the company's next quarterly report, these businesses will be accounted for as discontinued operations.