Horizon Global cuts loss despite lower sales

PLYMOUTH–Horizon Global Corp. (NYSE: HZN) reported a loss of $16.7 million or 66 cents a share in the first quarter of 2020, an improvement from a loss of $25.1 million or $1 a share in the prior year period. Revenue was $163.3 million, down 8.1 percent from $177.7 million a year earlier.

Horizon Americas sales fell 3.3 percent to $92.4 million, led by a decline in retail and industrial sales, partially offset by an increase in aftermarket and e-commerce sales. Gross profit rose $1.7 million due to lower scrap costs and lower freight costs. Adjusted earnings before interest, taxes, depreciation and amortization rose to $6.1 million from $1.4 million a year earlier.

Horizon Europe-Africa sales fell 13.7 percent to $70.9 million, due primarily to the coronavirus pandemic. The operating loss was $2.5 million, up $700,000 from a year earlier. Adjusted EBITDA was $2.3 million, down from $3.5 million a year earlier.

“Horizon Global delivered a strong year-over-year performance and generated positive operating cash flow in the first quarter of 2020, despite the unfavorable impact of COVID-19 on our business and economies around the globe,” stated Terry Gohl, Horizon president and CEO. “I want to thank Horizon Global’s employees for their commitment to maintaining our operations and excellent service delivery to our customers during these uncertain times. I also want to recognize their efforts in ensuring the health and safety of their colleagues, customers and those in the communities in which we operate. As we resume our global operations, we are focused on providing a safe and healthy workplace for our employees. During the relaunch of our business, we are carefully managing our liquidity in light of the continued macroeconomic uncertainty due to COVID-19. We will continue to flex our operations and partner with our supply chain to service our customers and meet market demand. Importantly, our business continues to improve every day as we aggressively pursue our operational improvement initiatives in 2020.”

To listen to a conference call discussing these results, visit www.horizonglobal.com or call (877) 344-7529 in the United States or (412) 317-0088 elsewhere, using the conference ID number 10143768.

Horizon Global is the No. 1 designer, manufacturer, and distributor of towing, trailering, cargo management and other accessory products in the United States and Europe. Its brands include Draw-Tite, Reese, Westfalia, Bulldog, Fulton, and Tekonsha. Horizon Global has approximately 3,600 employees.

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