Tower International To Buy Back Shares; Sees Q2 Earnings Above Guidance

(RTTNews) - Tower International Inc. (TOWR) said its board of directors has authorized the company's management to repurchase up to $100 million of the company's issued and outstanding common stock from time to time in the open market. The time period for the buyback is open-ended.

Tower International President and CEO Mark Malcolm said, "In view of the Company's previously disclosed strong earnings and cash-flow outlook, in combination with a decline in our stock price to a point significantly below our view of intrinsic value, we believe stock repurchase represents a prudent and appropriate way to opportunistically deploy capital in a highly accretive and low-risk manner."

Malcolm added that using present projections, the company expects to generate more than enough cash through 2017 from operational free cash flow and the planned sales in Brazil and China to fund the repurchase authorization.

Tower plans to release its second-quarter results and update its outlook in late July.

The company presently anticipates that its revenue may be slightly lower than the prior guidance for the second quarter and full year, while second-quarter earnings are presently expected to exceed guidance based on favorable calendarization and other factors. The full-year earnings and cash flow are presently expected to be consistent with prior guidance.