Horizon Global Corp., a leading manufacturer of branded towing and trailering equipment, today reported fourth quarter and full-year financial results for 2017.
The company also announced a targeted action plan, which includes the restructuring of its Americas business to reduce operating costs and realign the organization for greater efficiency. The action plan also addresses business improvement activities in Europe-Africa, which include the continued integration of Westfalia.
Sales during the fourth quarter totaled nearly $196 million compared with $183.6 million in the year prior. Horizon incurred a net loss of $20.8 million, pared from a $22.25 million loss a year ago.
For the full year, the company reported sales of nearly $893 million, up from $649.2 million the previous year while the net loss was $3.55 million compared with $12.36 million.
“Our sales and operating profit grew for the year, but the business was unable to overcome the challenges we faced in the fourth quarter,” said Mark Zeffiro, president and CEO of Horizon Global, a spinoff of Trimas Corp. and parent to towing and trailering equipment supplier Cequent Corp. “We are disappointed that we did not achieve our full-year guidance. Our global team is focused on addressing these challenges and implementing a targeted action plan, which includes specific initiatives to address our organizational needs to become more efficient, better service customers, grow profitably and build long-term shareholder value.
Net sales for the Horizon Americas division decreased 5.1%, driven by delivery delays as the company transitioned to a new distribution facility and inventory management efforts by retail customers. Operating profit increased $2.2 million to $5.2 million, or 5.9% of net sales, primarily attributable to approximately $3.8 million of lower expense related to the impairment of certain intangible assets in our business in Brazil during the fourth quarter of 2016. Adjusted operating profit increased $0.6 million to $6.6 million, or 7.5 percent of net sales.
Targeted Action Plan
Horizon Global launched a business improvement action plan to address performance challenges that impacted performance in 2017, increase the organization’s overall efficiency and profitability, and position the company for long-term growth.
The plan includes the restructuring of the Americas segment, including facility consolidations and workforce reductions, as well as improving manufacturing efficiencies and optimizing its distribution network. Additionally, Horizon will continue implementing actions in its Europe-Africa segment related to business integration and improvement, while continuing to deliver its synergy plan.
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