Helped by improved volumes that led to stronger-than-expected revenues, Tower International (NASDAQ:TOWR) revealed on Friday a narrowed fourth-quarter loss.
The Livonia, Mich.-based company booked a net loss of $21.3 million, or $1.18 a share, compared with a loss of $23.2 million, or $1.86 a share, in the same quarter last year.
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Revenue for the integrated manufacturer of engineered structural metal components and assemblies to automotive original equipment was $541.6 million, up 8% from $501 million a year ago, ahead of average analyst estimates polled by Thomson Reuters of $474.6 million.
“Consistent with our ongoing game plan, Tower continued to do a good job converting increased volume into higher Adjusted EBITDA and higher margin,” Tower CEO Mark Malcolm said in a statement. “We believe our financial results in 2010 were right on track for this important first year of an anticipated multi-year auto recovery cycle.”
During the year, the company lowered net debt to $407.8 million, from $519.8 million in the year-earlier period.
Tower, whose client lists boasts big names such as Volkswagen and Ford (NYSE:F), emerged from bankruptcy in 2007 when private equity company Cerberus Capital Management purchased a majority of its assets. The company tightened its spending belt and turned public in a $13-a- share offering last October.
Looking ahead, Tower sees fiscal 2011 revenues in the range of $2.05 billion to $2.1 billion, in line with Wall Street estimates of $2.059 billion.