Horizon Global Sees 5.1% Decline in 3Q Sales

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November 9, 2018 by   Leave a Comment

Towing and trailering equipment supplier Horizon Global Corp. reported third-quarter results while also providing an update on its action plan, including activities related to its Kansas City, Mo., aftermarket and retail distribution facility.

The Troy, Mich.-based company incurred a third-quarter loss of $32.8 million, after reporting a profit in the same period a year earlier.

Horizon Global said it had a loss of $1.31 per share. Losses, adjusted for one-time gains and costs, came to 1 cent per share.

Revenue during the period was $227.8 million, representing a 5.1% decline from a year ago.

“Having recently been named to the permanent role of president and CEO, I am just as encouraged about our company as I was when I took over the interim role in May of this year,” said Carl Bizon, president and CEO of Horizon Global. “Our primary 2018 selling season in the Americas did not deliver the desired revenue and earnings result due mainly to ramp-up challenges in our Kansas City distribution facility. That being said, Kansas City proved during the third quarter that we now have the capabilities, processes and resources to support future growth in next year’s season.

“At quarter end, we had past due orders of approximately $8.5 million, down from a peak of approximately $26 million early in the quarter. With the Americas Action Plan items now complete, we have a greatly reduced cost structure to leverage in the region. We have also announced price increases to address rising input costs and tariffs. We will start to see the full impact of these actions in our financial results as volume ramps up with our normal seasonality in the second quarter of 2019.”

Net sales for its Horizon Americas segment were substantially unchanged from the third quarter of 2017, with increases in aftermarket and OE offset by a decline in the retail channel, which was impacted by supply constraints from overseas vendors and the fourth quarter 2017 divestiture of the broom and nrush business.

Operating profit decreased $3.7 million to $7.3 million, or 6.3% of net sales, primarily as a result of unfavorable input costs in advance of pricing actions and the costs of executing the company’s action Plan in the period. Adjusted operating profit increased $0.4 million to $12.2 million, or 10.5% of net sales.

To view the full report click here.

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