Tower Automotive Announces Operating Results for the First Quarter

Apr 19, 2001, 01:00 ET from Tower Automotive, Inc.

    GRAND RAPIDS, Mich., April 19 /PRNewswire/ --
     Tower Automotive, Inc. (NYSE:   TWR) today announced its operating results
 for the first quarter ended March 31, 2001.
     For the first quarter of 2001, revenues were $628 million, an eight
 percent decrease, compared with $685 million in the 2000 period.  Operating
 income declined 47 percent to $38 million from $72 million reported last year.
 Net income for the first quarter of 2001 was $13 million, or 28 cents per
 diluted share outstanding, versus $37 million, or 65 cents per diluted share,
 in the comparable 2000 period.
     In commenting on first quarter results, Dug Campbell, president and chief
 executive officer of Tower Automotive, said,  "As expected, the first quarter
 of 2001 proved to be the most difficult in Tower Automotive's history.
 Reduced volumes, pricing pressure and intense launch activities on several
 programs provided colleagues with an intense combination of challenges to
 overcome.  We were able to successfully meet the requirements of the Ford
 Explorer launch and continue on time development of our Ram Truck, Econoline,
 and Cadillac launch activities, while managing the business profitably.
     "Excluding our Korean operations, which were not consolidated in 2000,
 sales for the first quarter of 2001 as compared to the first quarter of 2000
 were down approximately 22 percent.  That volume decline and expenses of the
 aforementioned launches resulted in a year-to-year decline in net income.  We
 were able to preserve our working capital position through the first quarter
 of 2001 and stay within our planned level of capital spending.  Total
 borrowings increased by approximately $50 million.  Of the increase,
 approximately $28 million was due to the exercise of our option to purchase an
 additional 13.76 percent of Yorozu Corporation, bringing our ownership up to
 30.76 percent.  The balance of the increase in borrowings was to support the
 capital spending requirements of the various launches taking place in 2001.
     "We are forecasting an improvement to revenues and earnings in the second
 quarter, as compared to the first quarter of 2001.  However, excluding the
 effect of Korean sales, the volumes will still be well below those experienced
 in the second quarter of 2000.  The strength of volumes for the balance of the
 year is still clouded but, relative to our business mix, should result in
 sales at a SAAR of 15 to 15.3 million units for the year."
     Tower Automotive, Inc., produces a broad range of assemblies and modules
 for vehicle structures and suspension systems for the automotive
 manufacturers, including Ford, DaimlerChrysler, GM, Honda, Toyota, Nissan,
 Auto Alliance, Fiat, Kia, Hyundai, BMW and Volkswagen.  Products include body
 structural assemblies such as pillars and package trays, control arms,
 suspension links, engine cradles and full frame assemblies.  The company is
 based in Grand Rapids, Mich., and has its corporate office in Minneapolis,
 Minn.
     This news release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995.  Actual results may
 differ materially from the anticipated results as a consequence of certain
 risks and uncertainties, including but not limited to general economic
 conditions in the markets in which Tower Automotive operates, and other risks
 detailed from time to time in the company's Securities and Exchange Commission
 filings.
 
 
                    TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
          (Amounts in thousands, except per share amounts - unaudited)
 
                                              Three Months Ended March 31,
                                            2001                     2000
     Revenues                             $628,376                 $685,364
     Cost of sales                         549,105                  573,642
     Gross profit                           79,271                  111,722
     Selling, general and
      administrative expenses               35,299                   34,656
     Amortization expense                    6,078                    5,099
       Operating income                     37,894                   71,967
     Interest expense, net                  19,722                   13,197
       Income before provision for
        income taxes                        18,172                   58,770
     Provision for income taxes              7,028                   23,508
       Income before equity in
        earnings of joint ventures
        and minority interest               11,144                   35,262
     Equity in earnings of joint ventures    4,381                    4,480
     Minority interest - dividends
      on trust preferred securities, net    (2,664)                  (2,619)
       Net income                          $12,861                 $ 37,123
     Basic earnings per common share         $0.29                    $0.79
     Basic shares outstanding               44,111                   47,209
     Diluted earnings per common share       $0.28                    $0.65
     Diluted shares outstanding             52,233                   63,926
 
 
                    TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                             (Amounts in Thousands)
 
                                                     March 31,     December 31,
                                 Assets                2001           2000
                                                    (unaudited)
 
     Current assets:
       Cash and cash equivalents                          $--         $3,373
       Accounts receivable                            365,970        278,707
       Inventories                                    114,056        132,478
       Prepaid tooling and other                      108,292        133,935
         Total current assets                         588,318        548,493
 
     Property, plant and equipment, net             1,240,673      1,199,964
     Investments in joint ventures                    301,684        267,217
     Goodwill and other assets, net                   865,111        877,073
                                                   $2,995,786     $2,892,747
 
            Liabilities and Stockholders' Investment
     Current liabilities:
       Current maturities of long-term
        debt and capital lease obligations           $134,834       $149,066
       Accounts payable                               290,046        248,389
       Accrued liabilities                            202,578        175,219
         Total current liabilities                    627,458        572,674
 
     Long-term debt, net of current maturities        996,505        933,442
     Obligations under capital leases, net of
      current maturities                                6,714          8,458
     Convertible subordinated notes                   200,000        200,000
     Deferred income taxes                             35,276         33,884
     Other noncurrent liabilities                     168,027        185,444
         Total noncurrent liabilities               1,406,522      1,361,228
 
     Mandatorily redeemable trust convertible
      preferred securities                            258,750        258,750
 
     Stockholders' investment:
       Preferred stock                                     --             --
       Common stock                                       477            476
       Additional paid-in capital                     451,088        450,455
       Retained earnings                              320,817        307,956
       Deferred income stock plan                      (8,942)        (8,942)
       Accumulated other comprehensive loss           (20,206)        (9,672)
       Treasury stock, at cost                        (40,178)       (40,178)
         Total stockholders' investment               703,056        700,095
                                                   $2,995,786     $2,892,747
 
 

SOURCE Tower Automotive, Inc.
    GRAND RAPIDS, Mich., April 19 /PRNewswire/ --
     Tower Automotive, Inc. (NYSE:   TWR) today announced its operating results
 for the first quarter ended March 31, 2001.
     For the first quarter of 2001, revenues were $628 million, an eight
 percent decrease, compared with $685 million in the 2000 period.  Operating
 income declined 47 percent to $38 million from $72 million reported last year.
 Net income for the first quarter of 2001 was $13 million, or 28 cents per
 diluted share outstanding, versus $37 million, or 65 cents per diluted share,
 in the comparable 2000 period.
     In commenting on first quarter results, Dug Campbell, president and chief
 executive officer of Tower Automotive, said,  "As expected, the first quarter
 of 2001 proved to be the most difficult in Tower Automotive's history.
 Reduced volumes, pricing pressure and intense launch activities on several
 programs provided colleagues with an intense combination of challenges to
 overcome.  We were able to successfully meet the requirements of the Ford
 Explorer launch and continue on time development of our Ram Truck, Econoline,
 and Cadillac launch activities, while managing the business profitably.
     "Excluding our Korean operations, which were not consolidated in 2000,
 sales for the first quarter of 2001 as compared to the first quarter of 2000
 were down approximately 22 percent.  That volume decline and expenses of the
 aforementioned launches resulted in a year-to-year decline in net income.  We
 were able to preserve our working capital position through the first quarter
 of 2001 and stay within our planned level of capital spending.  Total
 borrowings increased by approximately $50 million.  Of the increase,
 approximately $28 million was due to the exercise of our option to purchase an
 additional 13.76 percent of Yorozu Corporation, bringing our ownership up to
 30.76 percent.  The balance of the increase in borrowings was to support the
 capital spending requirements of the various launches taking place in 2001.
     "We are forecasting an improvement to revenues and earnings in the second
 quarter, as compared to the first quarter of 2001.  However, excluding the
 effect of Korean sales, the volumes will still be well below those experienced
 in the second quarter of 2000.  The strength of volumes for the balance of the
 year is still clouded but, relative to our business mix, should result in
 sales at a SAAR of 15 to 15.3 million units for the year."
     Tower Automotive, Inc., produces a broad range of assemblies and modules
 for vehicle structures and suspension systems for the automotive
 manufacturers, including Ford, DaimlerChrysler, GM, Honda, Toyota, Nissan,
 Auto Alliance, Fiat, Kia, Hyundai, BMW and Volkswagen.  Products include body
 structural assemblies such as pillars and package trays, control arms,
 suspension links, engine cradles and full frame assemblies.  The company is
 based in Grand Rapids, Mich., and has its corporate office in Minneapolis,
 Minn.
     This news release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995.  Actual results may
 differ materially from the anticipated results as a consequence of certain
 risks and uncertainties, including but not limited to general economic
 conditions in the markets in which Tower Automotive operates, and other risks
 detailed from time to time in the company's Securities and Exchange Commission
 filings.
 
 
                    TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
          (Amounts in thousands, except per share amounts - unaudited)
 
                                              Three Months Ended March 31,
                                            2001                     2000
     Revenues                             $628,376                 $685,364
     Cost of sales                         549,105                  573,642
     Gross profit                           79,271                  111,722
     Selling, general and
      administrative expenses               35,299                   34,656
     Amortization expense                    6,078                    5,099
       Operating income                     37,894                   71,967
     Interest expense, net                  19,722                   13,197
       Income before provision for
        income taxes                        18,172                   58,770
     Provision for income taxes              7,028                   23,508
       Income before equity in
        earnings of joint ventures
        and minority interest               11,144                   35,262
     Equity in earnings of joint ventures    4,381                    4,480
     Minority interest - dividends
      on trust preferred securities, net    (2,664)                  (2,619)
       Net income                          $12,861                 $ 37,123
     Basic earnings per common share         $0.29                    $0.79
     Basic shares outstanding               44,111                   47,209
     Diluted earnings per common share       $0.28                    $0.65
     Diluted shares outstanding             52,233                   63,926
 
 
                    TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                             (Amounts in Thousands)
 
                                                     March 31,     December 31,
                                 Assets                2001           2000
                                                    (unaudited)
 
     Current assets:
       Cash and cash equivalents                          $--         $3,373
       Accounts receivable                            365,970        278,707
       Inventories                                    114,056        132,478
       Prepaid tooling and other                      108,292        133,935
         Total current assets                         588,318        548,493
 
     Property, plant and equipment, net             1,240,673      1,199,964
     Investments in joint ventures                    301,684        267,217
     Goodwill and other assets, net                   865,111        877,073
                                                   $2,995,786     $2,892,747
 
            Liabilities and Stockholders' Investment
     Current liabilities:
       Current maturities of long-term
        debt and capital lease obligations           $134,834       $149,066
       Accounts payable                               290,046        248,389
       Accrued liabilities                            202,578        175,219
         Total current liabilities                    627,458        572,674
 
     Long-term debt, net of current maturities        996,505        933,442
     Obligations under capital leases, net of
      current maturities                                6,714          8,458
     Convertible subordinated notes                   200,000        200,000
     Deferred income taxes                             35,276         33,884
     Other noncurrent liabilities                     168,027        185,444
         Total noncurrent liabilities               1,406,522      1,361,228
 
     Mandatorily redeemable trust convertible
      preferred securities                            258,750        258,750
 
     Stockholders' investment:
       Preferred stock                                     --             --
       Common stock                                       477            476
       Additional paid-in capital                     451,088        450,455
       Retained earnings                              320,817        307,956
       Deferred income stock plan                      (8,942)        (8,942)
       Accumulated other comprehensive loss           (20,206)        (9,672)
       Treasury stock, at cost                        (40,178)       (40,178)
         Total stockholders' investment               703,056        700,095
                                                   $2,995,786     $2,892,747
 
 SOURCE  Tower Automotive, Inc.