Market Overview

Horizon Global Provides Update on Business Performance and Status of Action Plan


Business Update

  • Company withdraws guidance for 2018 due to short-term operational
    challenges impacting Horizon Global's revenue and profitability
    coupled with multiple initiatives underway as part of Company's Action
  • Revised outlook for 2018 based on updated assessment of operational
    • Distribution challenges in Americas business driving
      lower-than-expected second quarter 2018 results; improvements in
      Kansas City distribution center gaining momentum late in second
    • Europe-Africa business behind plan; segment leadership change and
      new operational initiatives underway
    • Asia-Pacific continues to perform in-line with expectations
  • Company continues to move initiatives forward as part of business's
    Action Plan
  • Triggering events during second quarter may result in additional
    non-cash goodwill impairment in Europe-Africa.

Horizon Global Corporation (NYSE:HZN), one of the world's leading
manufacturers of branded towing and trailering equipment, today provided
a revised business outlook and an update on its Action Plan, including
actions to improve performance in its Americas and Europe-Africa
segments."I have been closely involved with the operational challenges
and related solutions in the Americas since late January of this year,
and I have spent the past month evaluating our global operations and
meeting with the management teams of each business segment," said Carl
Bizon, Interim President and Chief Executive Officer of Horizon Global.
"Following this initial evaluation, I am pleased to confirm there are
many underlying strengths of our Company – Horizon Global has excellent
brands, a loyal customer base, experienced and committed team members,
excellent quality and solid end markets. These foundational strengths
support my confidence in the long-term success of Horizon Global.
However, my initial evaluation of our global operations highlighted a
number of near-term operational issues that must be addressed promptly.

"In March, we announced a series of immediate and longer-term steps to
improve performance, which are now part of the Company's overall Action
Plan. We have identified additional initiatives, primarily in
Europe-Africa, to expand the Action Plan and ensure that the Company is
moving in a positive direction. A good deal of my leadership experience
includes fixing operational issues within companies, and I am pleased to
report that the issues I see today at Horizon Global are operational in
nature, not structural. We are taking swift action, with the support of
our Board of Directors, to address these operational challenges,
including leadership changes in the Americas and Europe-Africa segments
and a renewed focus on integrated business planning processes to align
our global team and prioritize operational initiatives.

"Additionally, we recently announced the termination of the Brink Group
acquisition. While the Company firmly believed in the rationale
underlying the acquisition, terminating the agreement is currently in
the best interests of the Company and allows complete management focus
on our existing business. Absolute attention to our operations, core
brands, customers and distribution channels is necessary at this time."

Commented David Rice, Chief Financial Officer of Horizon Global,
"Although we are making solid progress against our Action Plan
initiatives in the Americas related to restructuring and consolidating
the organization, the delayed financial realization of our operational
improvements and persistent headwinds in Europe-Africa are expected to
result in performance that is below our expectations in the quarter. In
response to these challenges, we are tightly managing discretionary and
non-core SG&A expenses across the organization. While we did not provide
guidance for the second quarter, we expect our upcoming quarterly
results to fall below current analyst consensus.

"In spite of showing steady improvement through much of the second
quarter, our Kansas City distribution center did not begin approaching
its daily shipment goals until well into the month of June. As such, we
are expecting to exit the second quarter with more that $20 million in
past-due orders. Additionally, we expect that the performance of our
Europe-Africa segment relative to our expectations, as well as the
further decline in our market capitalization as compared to the end of
the first quarter, will trigger the need to perform an interim
impairment test of goodwill and other intangible assets, which may
result in an additional non-cash impairment."

Action Plan

Horizon Global announced a business improvement plan on March 1, 2018
with targeted initiatives to drive operating results in each of its
business segments. Action Plan updates include:

  • Reynosa production facility performing at desired production levels
    with process improvements well established under new leadership
  • Kansas City average daily shipments increased over 70 percent from
    start of second quarter through late June
  • Americas consolidation and organizational delayering is on track with
    90 percent completion expected by the end of Q2; new leadership in the
    areas of sales, engineering, distribution and manufacturing
  • Europe-Africa low-cost-country production increased 59 percent year to

After the recent evaluation of Horizon's global operations, the
following actions have been added to the Action Plan:

  • Jason Kieseker named President of Europe-Africa, maintaining
    responsibility for Asia-Pacific with support of new general manager
    for the region
  • Newly created position for Vice President of Operations for
  • New leadership and process improvements in Europe-Africa to alleviate
    over-reliance on third-party consultants

Bizon concluded, "We fully grasp the magnitude of the work we have ahead
of us. Given our focus on correcting the operational issues facing
Horizon Global, we believe it is appropriate to withdraw our previous
financial guidance for full year 2018. The decision to withdraw our
guidance in no way takes away from our commitment to move quickly to
deliver improved performance. We have not lost sight of and remain
committed to our longer-term financial goals for our business. Although
it may take longer than we planned, we believe that our long-term goals
of 3- to 5-percent revenue growth and 10-percent operating margins are
achievable. We will continue to update investors on our progress against
achieving our operating and process improvement goals and will
re-evaluate our approach to annual guidance in the future."

Conference Call Details

Horizon Global will host a conference call to discuss these items today,
Wednesday, June 20, 2018 at 8:30 a.m. Eastern Time. Participants in the
call are asked to register five to 10 minutes prior to the scheduled
start time by dialing (844) 711-8052 and from outside the U.S. at (832)
900-4641. Please use the conference identification number 9257629.

The conference call will be webcast simultaneously and in its entirety
through the Horizon Global website. Shareholders, media representatives
and others may participate in the webcast by registering through the
investor relations section on the Company's website.

A replay of the call will be available on Horizon Global's website or by
phone by dialing (800) 585-8367 and from outside the U.S. at (404)
537-3406. Please use the conference identification number 9257629. The
telephone replay will be available approximately two hours after the end
of the call and continue through July 3, 2018.

About Horizon Global

Horizon Global is the #1 designer, manufacturer and distributor of a
wide variety of high-quality, custom-engineered towing, trailering,
cargo management and other related accessory products in North America,
Australia and Europe. The Company serves OEMs, retailers, dealer
networks and the end consumer as the category leader in the automotive,
leisure and agricultural market segments. Horizon provides its customers
with outstanding products and services that reflect the Company's
commitment to market leadership, innovation and operational excellence.
The Company's mission is to utilize forward-thinking technology to
develop and deliver best-in-class products for our customers, engage
with our employees and realize value creation for our shareholders.

Horizon Global is home to some of the world's most recognized brands in
the towing and trailering industry, including: BULLDOG, Draw-Tite,
Fulton, Hayman Reese, Reese, ROLA, Tekonsha, and Westfalia. Horizon
Global has approximately 4,300 employees in 58 facilities across 21

For more information, please visit

Safe Harbor Statement

This release may contain "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements contained herein speak only as of the date they are made and
give our current expectations or forecasts of future events. These
forward-looking statements can be identified by the use of
forward-looking words, such as "may," "could," "should," "estimate,"
"project," "forecast," "intend," "expect," "anticipate," "believe,"
"target," "plan" or other comparable words, or by discussions of
strategy that may involve risks and uncertainties. These forward-looking
statements are subject to numerous assumptions, risks and uncertainties
which could materially affect our business, financial condition or
future results including, but not limited to, risks and uncertainties
with respect to: the Company's leverage; liabilities imposed by the
Company's debt instruments; market demand; competitive factors; supply
constraints; material and energy costs; technology factors; litigation;
government and regulatory actions; the Company's accounting policies;
future trends; general economic and currency conditions; various
conditions specific to the Company's business and industry; the spin-off
from TriMas Corporation; risks inherent in the achievement of cost
synergies and the timing thereof in connection with the Westfalia
acquisition, including whether the acquisition will be accretive; the
Company's ability to promptly and effectively integrate Westfalia; the
performance and costs of integration of Westfalia; the Company's ability
to successfully implement the Company's Action Plan, including realizing
the expected cost savings within the anticipated time frame or at all;
the timing and amount of repurchases of the Company's common stock, if
any; and other risks that are discussed in the Company's most recent
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q or Current
Reports on Form 8-K. The risks described herein are not the only risks
facing our Company. Additional risks and uncertainties not currently
known to us or that we currently deemed to be immaterial also may
materially adversely affect our business, financial position and results
of operations or cash flows. We caution readers not to place undue
reliance on such statements, which speak only as of the date hereof. We
do not undertake any obligation to review or confirm analysts'
expectations or estimates or to release publicly any revisions to any
forward-looking statement to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.

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