Tower International Sees FY Adj. EPS Above View

(RTTNews) - Tower International Inc. (TOWR) said that it expects full year revenue of $1.915 billion, adjusted EBITDA of $200 million-$202 million, and adjusted earnings per share of $3.30. Analysts polled by Thomson Reuters expect the company to report earnings of $3.19 per share and revenues of $1.95 billion for fiscal year 2016. Analysts' estimates typically exclude special items.

"We presently believe that industry volume in 2017 will be roughly the same as 2016. Tower is, however, relatively well-positioned regardless of your volume outlook. This reflects the underlying strength and tailwinds at Tower from the higher-margin new business coming on board over the next few years that, absent lower industry volume, is expected to drive further increases in overall margin and best-ever free cash flow," said CEO Mark Malcolm.

Net income from continuing and discontinued operations was a record for the third quarter, at $18.2 million or 86 cents per share, compared with net income of $16.3 million or 76 cents per share in the third quarter last year. This year's third quarter included certain items that adversely impacted results by $0.9 million. Excluding these items and comparable items in the third quarter of 2015, diluted adjusted earnings were 90 cents per share, 20% better than a year ago.

Revenue for the third quarter was $457 million, up 3% from $442 million in the third quarter of 2015, reflecting organic new-business growth in North America.