Tower International Inc. posted a profit in the first quarter as its revenue was enhanced by higher vehicle production as the automotive industry recovers from a serious slump.
Tower posted a quarterly net profit of $9 million or 45 cents per share compared to the previous year with a loss of $8.7 million or 70 cents per share a year earlier. With one-time items excluded, earnings per share for the quarter totaled 57 cents, beating the average Wall Street earnings estimate of 14 cents per share.
Meanwhile, revenue in the quarter increased by 25% to $599 million from $479 million. It was in 2007 when Tower, which produces stamped metal parts for carmakers, emerged from bankruptcy. Most of its assets were sold to a unit of private equity firm Cerberus Capital Management.
Tower then started a cost-cutting program and returned as a publicly traded company with an initial public offering just last October. In a statement, CEO Mark Malcolm Chrysler stated that the company is reaching its goal of gaining from improved auto production volumes.
Automotive News data center stated that for the first four months of 2011, its North American production went up by 14.4% to 4.5 million light vehicles.
Malcolm revealed that the company has “made meaningful further progress” on its priority in the longer-term to prioritize sustainable future growth by giving the go signal to an expansion for one of Tower's China joint ventures and by being able to access nearby adjacent defense, aerospace, and industrial markets through the acquisition of the assets of W Industries."