TROY — Horizon Global Corp. (NYSE: HZN), a manufacturer of towing and trailering equipment, reported a loss of $46.8 million or $1.86 a share in the fourth quarter, compared to a loss of $20.8 million or 84 cents a share in the fourth quarter of 2017. Revenue was $172 million, down from $196 million a year earlier.
For the full year, the net loss was $204 million or $8.14 a share, worse than a loss of $3.6 million or 14 cents a share a year earlier. Revenue was $850 million, down from $893 million in 2017.
For the full year, the worsening loss stemmed from an increase in cost of sales, higher losses on dispositions of property and equipment, a $126.8 million charge on impairment of goodwill and intangible assets, and higher selling, general, and administrative expenses.
President and CEO Carl Bizon, hired last year as interim CEO and made permanent CEO in October, said the company “reset the business in the U.S. and establish(ed) a foundation for top- and bottom-line growth in 2019 and beyond.”
He said the company “completed the action plan for the Americas and are now delivering efficiently from our primary U.S. distribution center in Kansas City, with past due orders in the Americas decreased to less than $6 million at the end of 2018 from $8.5 million at the end of the third quarter and a seasonal peak of $26 million.”
He said the company’s “business improvement initiatives will take time and attention to complete, but, in the end, we believe they will optimize operations, improve product quality, and reduce costs. A major focus remains on supply chain and logistics to improve the overall efficiency of our operations. We remain optimistic about our team’s ability to drive positive momentum in the segment over time.”
Among segments, the company said sales fell 19.7 percent in the Americas, 8.3 percent in Europe-Africa, and 1.6 percent in Asia-Pacific.
For 2019, Bizon said, “We are optimistic regarding our outlook for the year, although we are experiencing a slow start to the prime spring and summer selling season in the U.S. due to cold and wet weather conditions impacting numerous industries. With our new financing in place, providing the liquidity and capital flexibility we need to execute our business plan, we have a stronger foundation from which to operate in the coming year.”
To listen to a replay of the conference call discussing these results, call (800) 585-8367 in the United States and (404) 537-3406 elsewhere, using the conference identification number 7447016. The replay is also available at the Horizon Global website, www.horizonglobal.com.
Horizon Global brands include Bulldog, Draw-Tite, Fulton, Hayman Reese, Reese, ROLA, Tekonsha, and Westfalia. Horizon Global has approximately 4,200 employees in 37 facilities across 18 countries.