BLOOMFIELD HILLS — Horizon Global Corp. (NYSE: HZN), the towing and trailering equipment manufacturer, reported second quarter net income of $2.2 million or 12 cents a share, down from $10.8 million or 20 cents a share a year earlier.
Revenue was $158.5 million, down 11.1 percent from a year earlier. The company said the decline was due to currency translation caused by a stronger U.S. dollar and consolidation among its distributors, partially offset by growth in sales through e-commerce and retailers.
The company also reported a net income figure “excluding special items” of $10.2 million, down 37.8 percent from $16.5 million a year earlier. Special items include severance and business restructuring costs and a loss on software disposal.
For the six months, net income was $10.8 million or 60 cents a share, down from $13.2 million or 73 cents a share a year earlier. Revenue was $300.9 million, down from $326.4 million a year earlier.
“At the end of the second quarter, Horizon Global successfully spun off from TriMas Corporation, resulting in a new publicly traded company with a strong financial position, a seasoned leadership team, and a global footprint and portfolio of strong brands,” said Horizon Global president and CEO A. Mark Zeffiro. “Our financial results reflect the spin-off of Horizon Global, including incremental stand-alone company costs and expense allocations for certain
functions provided by TriMas. Our focus remains on our three priorities for value creation. Clearly, the first one is margin improvement, and we announced a number of actions geared toward profitability improvement. Second, our anticipated increase in cash flow would assist in reducing debt. And last, we expect increased revenues to be driven by our e-commerce platform, entrance into new markets and growth of our automotive original equipment business. We are leveraging our past investments, product portfolio and manufacturing footprint to create a significant opportunity for value creation.”
The company said its sales in the Americas fell 11.5 percent. In Asia, the Pacific, Europe and Africa, sales fell 9.6 percent in U.S. dollars but increased 4.8 percent in local currency, reflecting a stronger U.S. dollar.
Because of that stronger dollar, the company said it expects sales to be flat or rise only slightly in the second half of the year. Earnings are predicted in a range of $1 to $1.20 a share, excluding “special items.”
More at www.horizonglobal.com.